The rapid expansion of artificial intelligence infrastructure is pushing the electricity grid on the United States' East Coast to its absolute limit, raising the alarming prospect of rolling blackouts during peak summer demand, according to a major new analysis.
An Unprecedented Strain on Power
The organisation responsible for power across a vast 13-state corridor, PJM Interconnection, has warned it may be forced to trigger controlled power outages. PJM services nearly 70 million Americans from Kentucky to New Jersey. The primary driver of this crisis is the insatiable energy appetite of new AI data centres, which are heavily concentrated in areas like Northern Virginia.
Mark Christie, a former head of the Federal Energy Regulatory Commission, starkly summarised the shift in risk. "I used to believe the threat of blackouts was distant," he said. "Now I’m saying that the reliability risk is across the street."
Soaring Demand and Rising Tensions
Projections underscore the scale of the challenge. PJM forecasts power demand will grow by an average of 4.8 percent annually for the next decade. Consulting firm ICF estimates demand in 2030 will be a staggering 25 percent higher than 2023 levels, largely due to data centres.
This surge is already impacting consumers, with residents reporting soaring energy bills. "It’s killing my pockets," a Maryland resident told Bloomberg last September.
Warning signs flashed this past summer, when heatwaves drove PJM grid demand to near-record highs. The operator responded by requesting all power plants run at full capacity and paying large industrial users to temporarily shut down.
Proposals, Opposition, and a Call for Federal Intervention
In response to the looming shortfall, PJM drafted proposals that included slashing power to data centres during grid strain. Tech giants like Amazon, Microsoft, and Google opposed this, arguing it unfairly singled out their operations and countered with a plan for voluntary reductions.
The debate has escalated to federal regulators. Joseph Bowring of Monitoring Analytics filed a formal complaint urging the Federal Energy Regulatory Commission to prohibit PJM from connecting new data centres unless it has adequate spare capacity. He warned that without action, "PJM will be in the position of allocating blackouts rather than ensuring reliability."
The grid's vulnerability is compounded by the closure of multiple power plants in PJM's territory due to economic and environmental pressures. Meanwhile, politicians and industry executives trade blame over the causes of the crisis.
A Looming Threat with Deadly Precedent
The potential human cost of rolling blackouts is severe. In the winter of 2021, over 200 people died in Texas after the state's grid operator instituted outages to prevent total collapse during a freeze, leaving some without power for days.
Despite the high stakes, a December survey found most Americans have heard little about the rapid construction of new data centres. However, there is bipartisan support for increased regulation, with 60 percent agreeing more should be done to curb potential negative effects.
PJM board Chairman David acknowledged the "reliability challenges" but insisted "they are not unsolvable." The race to find a solution before the next major heatwave is now firmly on.
