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PJM Faces Rising Costs and Strained Supply as AI Demand Surges - Electricity bills in PJM territory could rise by more than 20% this summer as AI-driven demand collides with stalled energy projects and slow permitting.
Electricity bills in PJM territory are set to rise by over 20% this summer. Pennsylvania is even threatening to leave PJM, the country’s largest grid operator. And the next capacity auction may push prices even higher.
A surge in AI-driven data centers is straining PJM’s supply. Demand is going to grow by 32 GW by 2030. But over the last decade, the region has lost 5.6 GW of net capacity. Nearly 46 GW of approved projects remain stalled due to permitting delays, financing gaps, or local opposition.
The auction system, meant to stabilize supply, can’t keep up. Delays, price spikes, and backlogged interconnection requests have triggered lawsuits, leadership resignations, and a grid under stress before the summer’s even peaked.
This isn’t just a PJM issue. It’s a preview of what could become the norm: rising demand, aging infrastructure, and slow-moving approval systems that can’t keep pace. AI is here to stay, and power demand is up. No one wants coal in their backyard. Nuclear takes decades and faces NIMBY resistance at every step.
Faster permitting. Improving transmissions. More distributed storage. These aren't wishlist items anymore. They're essential to a grid's survival.
Where do you think the biggest fix needs to happen first?
Author: Laila Kearney