PJM Interconnection LLC missed its power-supply target in the 2027/2028 capacity auction, leaving a shortfall of several gigawatts [1].
This gap threatens the reliability of the electrical grid across 13 U.S. states [3]. As artificial intelligence drives a surge in data-center energy demand, the grid's ability to add new generation is failing to keep pace with consumption [2, 3].
The shortfall is estimated between 6,517 MW [2] and 6.8 GW [1]. This deficit has prompted an emergency reliability warning for the planning period starting in June 2028 [1, 2].
PJM serves approximately 67 million people [3]. The auction results indicate a tightening market where the price cap was hit at $333.44 per MW-day [2].
Industry analysts said the rapid growth of AI-driven infrastructure is a primary cause for the imbalance. Data centers require vast amounts of constant power, which is outpacing the construction and integration of new power plants into the PJM footprint [2, 3].
“PJM missed its power-supply target in the 2027/2028 capacity auction.”
The inability of the PJM grid to meet its capacity targets highlights a growing tension between the rapid expansion of the AI economy and the physical limits of energy infrastructure. If new generation cannot be brought online quickly, the region may face increased electricity costs or higher risks of power instability during peak demand periods.
