Article

PJM Interconnection has presented a proposal to manage the rising electricity demand from data centers. The plan offers two options for large new electricity consumers: bring additional generation capacity or operate under a 'connect-and-manage' regime.

Analysts suggest this could accelerate trading between data center owners and independent power producers (IPPs), encouraging direct bilateral contracts. The proposal coincides with an expected increase in electricity demand driven by AI applications, with significant energy deals already occurring.