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Pennsylvania Power Crisis Looms as AI Demand Surges

July 9, 2025

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The state of Pennsylvania is facing an escalating energy crisis driven by artificial intelligence and its growing demands for power. The state’s governor threatens to leave the grid provider PJM Interconnection due to skyrocketing electricity prices. PJM faces challenges meeting demand from data centers and AI operations, with an 800% increase in capacity auction prices last year. The organization is fast-tracking new power projects, but many won’t be operational until the 2030s. Consumer energy costs are projected to rise 20% this summer. PJM estimates needing an additional 32 gigawatts of power capacity by 2030 to meet growing demand.

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