Overview
- PJM said it is reviewing the nonbinding proposal and released a 14-page plan to speed data-center connections, including use of a backstop reliability tool, after noting it was not invited to the announcement.
- The concept would let tech companies bid for 15-year capacity contracts expected to support about $15 billion in new generation, or roughly 7.5 gigawatts, and includes a call to extend existing price caps.
- Analysts and federal data point to steep local bill impacts and rising demand, with Bloomberg finding electricity costs near data centers up to 267% higher over five years and DoE projecting data centers could use 6.7%–12% of U.S. power by 2028.
- Ohio illustrates both options and obstacles as Meta backs uprates at existing nuclear plants and explores small modular reactors with Oklo, whose Aurora design lacks NRC approval, while also sourcing 2,000 megawatts from existing units.
- Even if PJM advances a long-term auction this year, permitting, interconnection and construction timelines mean new capacity would take years, as PJM cites a 280,000-megawatt queue despite recent fast-tracking of 9,300 megawatts and considers requiring large users to curtail or run backup during peaks.