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US GRID UNDER PRESSURE: AI DEMAND FORCES REDESIGN
The US power grid overseen by PJM Interconnection (serving 67M people across 13 states) is no longer fit for purpose amid surging electricity demand from data centers, according to CEO David Mills.
In a letter to stakeholders, Mills warned the system cannot both secure enough power and protect households from rising costs under its current design. “The current situation is not tenable,” he wrote, pointing to deeper structural flaws reflected in rising prices, tight reserve margins, and weak investment signals.
The grid is facing multiple strains: potential electricity shortages as early as next year, and uncertainty linked to major utilities such as American Electric Power. Meanwhile, electricity bills have climbed sharply across the region—up 51% in Maryland and 41% in Illinois over five years.
Mills said the region has “years, not decades” to act, and emphasized the need for credible, stable market rules to restore confidence among utilities, investors, and consumers.