PJM Interconnection, which manages the power grid serving approximately 67 million people across 13 states and Washington D.C., has recorded its first-ever capacity shortfall during its auction for the June 2027-May 2028 period. Data centers alone are projected to add over 30 gigawatts of additional peak demand by 2030, equivalent to about 30 nuclear power plants running at full capacity. Electricity prices have surged from $28.92 per megawatt-day to $329.17 per megawatt-day, representing an increase of over 1000 percent. To address this, PJM has launched a reliability backstop procurement auction planned for autumn 2026 and approved a $6.7 billion transmission investment plan targeting congestion in Northern Virginia. This capacity price surge could impose an additional financial burden exceeding $100 billion on consumers through 2033.
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