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The largest US power grid has plans to address the growing electricity shortages due to data center demand.

PJM Interconnection - the largest U.S. grid operator - which serves a fifth (or?americans) - announced this week it would 'file plans with federal regulatory authorities?to reduce a growing gap between a?electricity _supply on its system and a demand primarily brought by data centres.

PJM, the grid operator for 13 U.S. States in the Mid-Atlantic region and Midwest, plans to submit two proposals to the Federal Energy Regulatory Commission to manage the surge in demand and secure more electricity on the grid.

One of these plans establishes a "reliability-backstop procurement" that is designed to match supplies with the data center power requirements that cannot be met by long-term contracts. The backstop procurement will begin on September 30, and run until October 21, with the results being released in December.

PJM is looking for ways to increase generation to meet the rapidly increasing electricity demand - largely due to the expansion of the data centers in this region. It anticipates that demand from new large energy consumers will increase by 70 gigawatts in 2038.

A gigawatt can power approximately 750,000 homes.

The backstop procurement process will cover any supply shortages that may have occurred in PJM’s recent power auctions.

In its annual capacity auction, held this month in New York City, the power price was capped at $325 per Megawatt-day. Despite high prices meant to 'incentivize construction of new power stations, PJM failed to meet its reliability requirements by 6.8 gigawatts despite the high prices. This is a greater shortfall than the one that resulted from the previous auction.

The'second proposal' that the PJM Board of Directors directed staff to submit with FERC, would create a database for data centers and other large energy 'users. This registry would track their location and electricity usage.

PJM suggests that, for 'data centers that don't supply their own electricity, it could temporarily cut off the power to these sites if there is a high demand on a grid. This would help to prevent rolling blackouts. PJM stated that it 'doesn't have the capability to curtail this electricity, and would need the cooperation of each state government. Reporting by Laila K. Kearney, New York; Kavya B. Balaraman, Noel John and Mark Potter in Bengaluru. Editing by Mark Potter and Aurora Ellis.

(source: Reuters)