A dangerous heatwave is intensifying across much of the central and eastern United States, leading to concerns about the nation's power grids. The largest regional grid operator, PJM Interconnection, which serves 67 million people, is forecasting record summer electrical demand of 166.3 gigawatts (GW) for Thursday evening, set to surpass its previous summer peak from 2006. PJM executives warned in May of a "fundamental mismatch between how fast demand is growing and how quickly new supply can be built and connected to the grid," noting that new power plants now take twice as long and cost twice as much to build as a decade ago.
Energy demand is being significantly driven by new technologies, particularly hyperscale data centers processing tools like ChatGPT, Gemini, and Claude, and electric vehicles. Northern Virginia, a major data center hub within PJM's service area, is experiencing substantial demand. Researchers have also identified a "data heat island effect," where land surface temperatures around AI data centers rise by an average of 2 degrees Celsius (3.6 degrees Fahrenheit), with some locations seeing increases of up to 9 degrees Celsius (16.2 degrees Fahrenheit). PJM stated that hyperscale data centers are "adding load at an unprecedented pace."
The strain on the grid is evident in wholesale electricity price spikes. On Wednesday afternoon, spot wholesale electricity prices in PJM's Virginia zone surged to over $600 per megawatt-hour, compared to about $40 per megawatt-hour earlier in the day. Forecasts suggest prices could exceed $1,000 per megawatt-hour. The U.S. Department of Energy issued two emergency orders for the mid-Atlantic to reduce blackout risks, allowing PJM to dispatch specific power units and authorize backup generation. Other grid operators, including the New York Independent System Operator (NYISO) and the Midcontinent Independent System Operator (MISO), also expect demand to reach near-record or record highs, with MISO relying on PJM for support.
