The biggest U.S. power grid is under strain from AI — and no one is happy

The PJM Interconnection, which serves the largest U.S. power grid including data center-dense Northern Virginia, is facing unprecedented strain from AI and cloud computing demand that has overwhelmed its infrastructure and approval processes, forcing a critical operational overhaul that could significantly impact IT organizations' ability to expand or maintain data center operations. The grid operator's proposed solutions—longer supplier commitments, tiered service reliability, or real-time pricing models—each carry substantial risks and implementation challenges that could increase energy costs, reduce service reliability, or create market instability affecting the entire tech sector. IT leaders must prepare for potential power constraints, higher electricity costs, and supply uncertainty that could necessitate geographic diversification of computing infrastructure and accelerated adoption of on-premises renewable energy.