Largest U.S. Power Grid Warns: AI Data Centers May Face Forced Shutdowns to Prevent Residential Electricity Price Surges

PJM Interconnection, one of the largest electricity market operators in the U.S., has proposed adjustments to the management mechanisms for large electricity consumers: if AI data centers fail to secure sufficient power generation resources in advance, they may face supply cuts or be forced to exit grid operations during periods of tight supply or peak demand. This measure aims to prevent widespread outages and avoid shifting capacity costs onto residents. PJM estimates that by 2038, the additional electricity demand from data centers will increase by approximately 70 gigawatts, while its coverage area has already seen about 15 gigawatts of power generation capacity exit since 2022. PJM plans to hold a "Reliability Backstop Procurement" auction in September to fill a gap of about 7 gigawatts, with related costs borne by data centers. It also aims to encourage data centers to sign long-term power contracts with generation companies to secure energy supplies.