PJM Interconnection, which serves approximately 67 million customers across 13 states and Washington, D.C., has obtained emergency federal authorization enabling selective power curtailment for data centers and other high-consumption facilities equipped with backup generators. The grid operator anticipates electricity demand could reach 166,147 megawatts on Thursday, surpassing the previous summer record of 165,563 megawatts set in 2006.
This emergency measure reflects the accelerating strain on U.S. utilities as electricity demand outpaces historical growth trends, driven by widespread air conditioning use during extreme heat, exponential expansion of artificial intelligence data centers, and broader electrification initiatives. (Graeme Sloan/Bloomberg via Getty Images)
The Department of Energy has approved the emergency order under Section 202(c) of the Federal Power Act, permitting PJM to prioritize curtailment of non-essential electricity use by large customers before implementing broader emergency measures. Simultaneously, the grid has secured temporary exemptions from certain environmental regulations for power plants through July 3, enhancing generator flexibility.
PJM Interconnection serves approximately 67 million people across 13 states and Washington, D.C. (Jordan Vonderhaar/Bloomberg via Getty Images)
To mitigate risks, PJM has reactivated power generation units removed from maintenance, issued Maximum Generation and Load Management Alerts, and activated a Low Voltage Alert protocol—all designed to preserve grid reliability without requiring action from residential customers. However, wholesale electricity prices have already surged, with spot prices in northern Virginia—a hub for major data centers—spiking as temperatures neared 100 degrees Fahrenheit.
Thursday’s projected demand would represent PJM’s highest electricity consumption in nearly two decades. (Joe Raedle/Getty Images)
General Motors is enabling select electric vehicle owners to sell electricity back to the U.S. power grid, expanding vehicle-to-grid capabilities to support grid stability. Similar peak demand preparedness efforts are underway across other regional grid operators, including New York’s grid operator, which has urged voluntary conservation during high-usage periods, and the Midcontinent Independent System Operator, which continues monitoring conditions that could test record demand thresholds.
These measures underscore persistent concerns about whether generation and transmission infrastructure can sustainably accommodate rapidly rising electricity needs, particularly as energy-intensive AI data centers proliferate and prolonged heat waves intensify cooling demands nationwide.
Reuters contributed to this report.
