PJM asks for 15GW for AI growth

PJM Interconnection is seeking about 15 gigawatts of new power supply after a surge in artificial-intelligence data center demand tightened electricity reserves across its grid. (news.bloomberglaw.com) The grid operator’s January 16 plan called for an immediate “reliability backstop procurement” and other rule changes to connect new large loads while protecting reliability for the 67 million people PJM serves across all or parts of 13 states and Washington. (pjm.com) PJM’s current design work describes the backstop as a one-time, transitional procurement, with bilateral contracting proposed from September 2026 through March 2027 and a central procurement for any remaining megawatts after that. (pjm.com) PJM runs the high-voltage grid and wholesale power market for a region stretching from Illinois to New Jersey. Its capacity market is supposed to buy enough future supply three years ahead so power plants are available when demand peaks. (ferc.gov) That system has been under strain as data centers add huge, always-on electricity demand faster than new power plants and transmission lines are being built. The U.S. Energy Information Administration said in March that PJM is one of the two U.S. grid regions with the fastest expected load growth through 2027. (eia.gov) PJM’s own 2026 load forecast cut some near-term estimates after stricter vetting of proposed projects, but it still raised the 10-year summer peak-growth rate to 3.6% and projected about 222 gigawatts of summer peak load by 2036. (utilitydive.com) The immediate warning sign has been price. PJM’s December 2025 capacity auction hit a regionwide price cap of $333.44 per megawatt-day and still procured about 6,625 megawatts less than its reserve target, according to Utility Dive’s report on PJM’s results. (utilitydive.com) Governors in PJM states have pushed for the backstop to shield existing customers from those costs. In an April 9 letter, the governors’ collaborative said data centers should pay backstop capacity costs and asked PJM to add stranded-cost protections if projects are delayed or canceled. (governor.maryland.gov) PJM has also proposed faster paths for some new generation and options for large customers to bring their own supply or accept curtailment when the system is stressed. Board Chair David Mills said in January that the issue was not “yes/no to data centers” but how to add them “while keeping the lights on.” (pjm.com) The next fight is over who builds that 15 gigawatts, how fast it can come online, and who pays if the artificial-intelligence boom keeps outrunning the grid. (news.bloomberglaw.com)