America’s largest power grid braces for emergency managers to shut down some data centers as record demand grows
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America’s largest power grid has secured emergency powers that would allow some data centers and other large power users with backup generators to temporarily reduce their power use as officials prepare for what could be the system’s biggest electricity demand in nearly two decades.
PJM Interconnection, which serves about 67 million people across 13 states and Washington, DC, said Wednesday it expects electricity demand to reach about 166,147 megawatts on Thursday, surpassing the current summer record of 165,563 megawatts set in 2006.
The move underscores the growing challenge facing U.S. utilities as demand for electricity accelerates after years of flat growth, fueled by increased air conditioning use during extreme heat, expanding artificial intelligence data centers and widespread electrification trends.
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Power grids face challenges from high temperatures and demand. (Graeme Sloan/Bloomberg via Getty Images)
The grid operator said it has received approval from the Department of Energy for an emergency order under Section 202(c) of the Federal Power Act that, if necessary, will allow electricity distributors to reduce electricity consumption by data centers and other large backup generating customers before resorting to broader emergency measures.
PJM also received temporary relief from certain environmental permit limits for power plants until July 3, giving generators more flexibility to meet growing demand.
PJM Interconnection serves approximately 67 million people in 13 states and Washington, DC (Jordan Vonderhaar/Bloomberg via Getty Images)
To prepare, PJM recalled generating units from maintenance, issued High Production and Load Management Notices, and installed a Low Power Alert to help maintain grid reliability. Alerts do not require any action from customers who live in the area.
Wholesale electricity prices have already increased in parts of PJM. In northern Virginia, home to the world’s largest data centers, electricity prices rose sharply Wednesday as temperatures neared 100 degrees.
If Thursday’s forecast holds, it will mark the highest demand for electricity in PJM in nearly 20 years.
If Thursday’s forecast holds, it will mark the highest demand for electricity in PJM in nearly 20 years. (Joe Raedle/Getty Images)
Some grid users are also preparing for more electricity use. New York’s grid operator has asked customers to conserve power during peak hours, while the Midcontinent Independent System Operator is monitoring conditions that could challenge demand records this week.
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The emergency measures reflect growing concerns about whether power generation and transmission facilities can keep up with rapidly growing electricity demand, especially as AI giant data centers use more power and prolonged heat waves drive higher weather conditions across the country.
Reuters contributed to this report.
