US's Largest Power Grid Warns: AI Data Centers May Face Forced Power Outages to Prevent Soaring Residential Electricity Prices

One of the largest electricity market operators in the United States, PJM Interconnection, has proposed adjustments to the management mechanism for large electricity consumers. If AI data centers fail to secure sufficient power generation resources in advance, they will face power supply curtailment or even forced disconnection from the grid during periods of tight supply or peak demand. This measure aims to prevent widespread power outages and avoid shifting capacity costs to residential consumers. PJM anticipates that data centers will add approximately 70 gigawatts of electricity demand by 2038, while its service area has already seen about 15 gigawatts of generation capacity retire since 2022. PJM plans to hold a "Reliability Backstop Procurement" auction in September to fill a gap of approximately 7 gigawatts. The associated costs will be borne by data centers, and they will be encouraged to sign long-term power purchase agreements with generation companies to secure energy supply.