The power system that supplies electricity to millions of Americans across 13 states is under severe pressure. Driven by a relentless heatwave and the rapid rise of data centres, the grid is working harder—and costing much more—than ever before.
PJM Interconnection, the organisation that manages this vast electrical network, is preparing for electricity use to reach a record-breaking 166.2 gigawatts. To put that into perspective, it is a level of demand that tests the absolute limits of the system's capacity.
What is driving the surge?
Two main factors are colliding to create this energy crunch:
1. Extreme weather: A "heat dome" trapping hot air over much of the country has caused a massive spike in air conditioning use. When temperatures stay high day and night, the demand for power rarely drops.
2. The data centre boom: The technology behind Artificial Intelligence (AI) and cloud computing requires enormous, warehouse-sized data centres. These facilities run 24 hours a day and consume vast amounts of electricity.
Rising costs for keeping the lights on
Moving electricity from where it is made to where it is needed most causes "traffic jams" on the power lines. Engineers call this congestion.
To prevent blackouts during these traffic jams, grid operators have to turn on backup power plants, which are often older and much pricier to run. As a result, the cost of keeping the grid operating smoothly has jumped by nearly 70% this year, reaching over $16 billion. Of that total, about $3.8 billion goes directly to the extra power needed for data centres.
In some extreme moments, the wholesale price of electricity has briefly rocketed past $2,000 per megawatt hour. While ordinary customers do not pay wholesale prices directly, these massive costs eventually trickle down to monthly utility bills.
Looking ahead: what can be done?
Grid managers are currently working closely with government leaders to figure out how to add more power plants and build stronger transmission lines. However, experts warn that building new infrastructure takes years, meaning the grid could face serious limits in the near future.
For now, officials say the most practical way for regular people to help—and save money—is to focus on energy efficiency. Simple upgrades, like using energy-saving appliances, sealing drafts, and adjusting the thermostat during the hottest hours of the day, can help reduce the strain on the grid while keeping personal costs in check.
