The largest US power grid failed for a third straight year to secure enough future supply commitments to ensure reliability for the future amid a historic boom in data center demand.
PJM Interconnection, the largest US power grid (Regional Transmission Organization), which serves 67 million customers in 13 states and Washington, DC, said its auction to procure power for the year starting June 2028 fell 6.8 gigawatts short of what it will need to guarantee system reliability during demand spikes, in a statement released Tuesday. The shortfall is equivalent to almost seven traditional nuclear reactors.
The result ramps up pressure on a grid that’s home to Virginia’s Data Center Alley, the biggest concentration of data centers in the US, and has borne the brunt of criticism for the struggle to manage the AI boom and sufficiently protect customers from soaring costs. Attention now shifts to an emergency procurement mechanism later this year that aims to shift the burden of ramping up power generation to hyperscalers.
6.831 Megawatt Shortfall
PJM Interconnection today announced the results of its 2028/2029 Base Residual Auction (BRA), which secured 138,318 MW of unforced capacity generation (UCAP) and demand response to meet projected electricity needs for the more than 67 million people across 13 states and the District of Columbia, which fall under the RTO's umbrella.
Regions under the Fixed Resource Requirement (FRR) acquired an additional 10,864 MW in UCAP, for a t
