The largest Regional Transmission Operator (RTO) in the US, PJM Interconnection, could face an unprecedented power shortfall over the next decade due to data center demand.

According to Bloomberg reporting, the RTO could face a power supply shortfall of up to 60GW. The grid operator warned that the shortfall would materialize if major action is not taken to support the buildout of new generation infrastructure.

In December, the RTO reported a 6.5GW shortfall in its latest capacity auction. As a result, PJM warned that there is not enough generation at present to meet peak demand plus required reserves for the year starting mid-2027.

These fears have spurred action within the federal government, with President Donald Trump calling on PJM to hold an emergency power auction that would see data center operators foot the bill for the construction of new power generation infrastructure.

Under the terms of the initiative, the Trump administration and governors within the PJM Interconnection market will push the RTO to launch a reliability power auction, giving tech companies and hyperscalers the chance to bid on 15-year contracts for new electricity generation.

According to reports, if the plan were to go ahead, it could deliver contracts worth more than $15 billion to facilitate the construction of new power plants.

Following the announcement, PJM released a statement outlining a set of board-approved actions aimed at accommodating data centers and other large new electricity users.

The measures include the immediate launch of efforts to secure additional power supplies. PJM also said it will enhance load forecasting, expand the role of states, and explore options that would allow large customers to supply their own generation or participate in a connect-and-manage approach. Additional steps include establishing a fast-track interconnection process for state-backed generation projects and beginning a backstop procurement to address near-term reliability risks.

PJM has said that it plans to file a detailed plan to federal regulators in May and hold the special procurement event set out by President Trump in September.

Despite the potential shortfall, there have been growing concerns about the impact that massive generation and interconnection buildouts could have on electricity bills for ratepayers in its service area. PJM, which serves 13 states across the Mid-Atlantic and Midwest, recently announced that its summer peak load will grow by 3.6 percent a year to about 222GW by 2036, driven predominantly by data center growth.

In July of last year, following the RTO’s latest annual capacity auction, where wholesale electric capacity grew 22 percent compared to the year before, reports surfaced that ratepayers across the network could begin facing spiralling bills fueled by the growth of the data center sector.