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Major US power operator says AI and data center demands are pushing prices up

  • PJM Interconnection, the largest US power grid operator serving 65 million customers in 13 states, is facing a 20% increase in summer electricity bills due to high demand.
  • Supply and demand challenges are exacerbated by state energy policies closing power plants and delays in renewable energy projects due to policy changes.
  • Renewable energy projects are seen as a cost-effective way to increase power generation capacity, but the Trump administration's policies have hindered progress.
  • The surge in demand from data centers, including from ChatGPT AI models, has further strained PJM's resources, leading to price spikes and delayed power plant connections.

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