The largest power grid operator in the US just hit a wall. PJM Interconnection, which manages electricity delivery across 13 states and Washington, D.C., held a Members Committee vote on November 19 to decide how to handle an unprecedented flood of data center interconnection requests. Twelve proposals were on the table. None of them passed.

The failure to reach the required two-thirds support threshold means PJM’s Board of Managers will now craft and advance its own plan, with a target of filing with federal regulators by December 2025. The stakes are enormous: PJM projects roughly 32 gigawatts of new electricity demand by 2030, with about 30 GW of that coming from data centers alone.

To put that in perspective, 30 GW is enough to power more than 20 million households.

Why 12 proposals failed and what comes next

PJM launched what it calls a Critical Issue Fast Path, or CIFP, process to fast-track solutions for managing large power loads connecting to the grid. The process generated a dozen stakeholder proposals, reflecting the wide range of interests at play: utilities, power generators, large industrial consumers, and the data center operators themselves all have different views on who should bear the costs and risks of this massive buildout.

With the vote behind them, PJM’s board now takes the wheel. The plan is to develop its own proposal and file it with the Federal Energy Regulatory Commission, or FERC, potentially by December 2025.

Looking further ahead, PJM has signaled that 2026 will bring continued work on what it calls “connect-and-manage” strategies, along with curtailment options.

The price tag is already showing up on utility bills

Electricity bills in some areas have climbed by as much as 29% since July 2024, driven in part by capacity auction price spikes.

If the capacity situation goes unaddressed, projected additional costs could reach $163 billion from 2028 to 2032.

What this means for energy markets and investors

The sheer scale of projected demand, 32 GW by 2030, represents a generational investment opportunity in power generation and grid infrastructure. Capacity prices in PJM auctions have already spiked, and if data center load growth materializes as projected, the trend is unlikely to reverse.

Demand response, where large consumers agree to reduce usage during peak periods in exchange for financial incentives, could become a critical tool for managing the data center load. Some industry participants argue it should be a condition of interconnection for large loads.

PJM is not the only grid operator grappling with data center demand, but it is the largest and often sets the template for how other regional transmission organizations handle similar challenges. Whatever framework PJM and FERC ultimately adopt will likely influence policy across the country, shaping everything from interconnection timelines to cost allocation methodologies for years to come.