America's largest power-grid operator, PJM, which delivers electricity to 67 million people across a 13-state region from New Jersey to Kentucky, is approaching a supply crisis as AI data centers in Northern Virginia's "Data Center Alley" consume electricity at an unprecedented rate. The nonprofit expects demand to grow by 4.8% annually over the next decade. Mark Christie, former chairman of the Federal Energy Regulatory Commission, said the reliability risk that was once "on the horizon" is now "across the street." Dominion Energy, the utility serving parts of Virginia, has received requests from data-center developers requiring more than 40 gigawatts of electricity -- roughly twice its Virginia network capacity at the end of 2024. Older power plants are going out of service faster than new ones can be built, and the grid could max out during periods of high demand, forcing rolling blackouts during heat waves or deep freezes. In November, efforts to establish new rules for data centers stalled when PJM, tech companies, power suppliers and utilities couldn't agree on a plan. Monitoring Analytics, the firm that oversees the market, warned that unless data centers bring their own power supply, "PJM will be in the position of allocating blackouts rather than ensuring reliability."

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An anonymous reader quotes a report from CNBC: President Donald Trump said in a social media post on Monday that Microsoft will announce changes to ensure that Americans won't see rising utility bills as the company builds more data centers to meet rising artificial intelligence demand. "I never want Americans to pay higher Electricity bills because of Data Centers," Trump wrote on Truth Social. "Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks." [...] Trump congratulated Microsoft on its efforts to keep prices in check, suggesting that other companies will make similar commitments. "First up is Microsoft, who my team has been working with, and which will make major changes beginning this week to ensure that Americans don't 'pick up the tab' for their POWER consumption, in the form of paying higher Utility bills," Trump wrote on Monday. Utilities charged U.S. consumers 6% more for electricity in August from a year earlier, including in states with many data centers, CNBC reported in November. Microsoft is paying close to attention to the impact of its data centers on local residents. "I just want you to know we are doing everything we can, and I believe we're succeeding, in managing this issue well, so that you all don't have to pay more for electricity because of our presence," Brad Smith, the company's president and vice chair, said at a September town hall meeting in Wisconsin, where Microsoft is building an AI data center. While Microsoft is moving forward with some facilities, the company withdrew plans for a data center in Caledonia, Wisconsin, amid loud opposition to its efforts there. The project would would have been located 20 miles away from a data center in the village of Mount Pleasant.

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