PJM Says AI Data Centers Must Bring Capacity to Earn Firm Service
PJM’s proposed reliability framework would require many future large loads to secure enough generating capacity or face curtailments during power shortages.
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PJM, the nation's largest wholesale power market, has proposed a new framework requiring AI data centers and other large electricity users to secure their own generating capacity in order to receive firm electric service. Under this proposal, new large loads that cannot demonstrate adequate power supply would instead receive limited service and face curtailments during power shortages, rather than assuming the regional market will automatically supply them. The proposal reflects concern that the grid cannot keep pace with surging AI infrastructure demand, which is projected to add roughly 70 GW of new load by 2038 while about 15 GW of generation has retired since 2022. This represents a fundamental shift, as developers may now need to build or contract for dedicated power sources as part of their capital strategy rather than simply accessing firm service as existing customers do.
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