As concerns mount over potential power shortages on the grid, largely attributed to the rising demands of artificial intelligence (AI), a notable yet lesser-known issue looms: significant amounts of new generating capacity are awaiting approval for connection. This bureaucratic backlog is evident across various grid operators in the U.S., with PJM Interconnection, serving the mid-Atlantic region, facing one of the most substantial delays.
In response to this challenge, Google and PJM have announced a partnership, which includes Alphabet’s innovation lab, Tapestry, aimed at leveraging AI to expedite the grid application process. Their collaboration involves developing AI models to enhance applications on both ends of the process, utilising new planning tools for data verification and efficient project handling. This initiative is also set to facilitate PJM in effectively integrating renewable energy sources amidst a surge in energy demand.
Tech behemoths such as Amazon, Google, Meta, and Microsoft are racing to ensure ample generating capacity to support the burgeoning AI industry. Many of these companies are investing heavily in renewable energy, particularly solar and nuclear power, with significant quantities already acquired.
However, a pressing issue remains: the interconnection problem, which, while complex, poses a feasible solution to alleviate fears of underpowered data centres. Across the nation, approximately 2.6 terawatts of generating capacity currently await grid approval—a significant figure that doubles the total output of all existing U.S. power plants.
Within the PJM system alone, the volume of requests is staggering, exceeding 3,000 applications for 286.7 gigawatts of capacity. As a result of this overwhelming demand, PJM stopped accepting new applications in 2022, with a timeline for reviews not expected until mid-2026.
Renewable energy sources like solar and storage are most severely impacted, with over 1 terawatt of each waiting for grid access permission nationwide. The PJM region, usually not recognised for its renewable focus, reveals a similar trend, with fossil fuel applications being notably scarce—only 2.4% of applicants are for natural gas plants.
Historically, PJM’s grid has been predominantly fossil fuel-based, especially as natural gas has supplanted coal due to cost-effective fracking technology. Critics contend that PJM’s recently introduced approval processes favour fossil fuel projects over renewables, creating further hurdles for clean energy implementations.
In discussing their new collaboration with Google, PJM Executive Vice President Aftab Khan emphasised the organisation’s commitment to a “fuel agnostic” approach for its grid’s future. At the same time, Google has reaffirmed its dedication to reducing its carbon footprint in energy consumption, indicating a shared vision towards a cleaner, more efficient electrical grid.
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