US Power Grid Faces Emergency Order as Heatwave Pushes Demand to Record Levels

The U.S. Department of Energy declared an emergency for the nation’s largest power grid, PJM Interconnection, as an extreme heatwave drives electricity demand to unprecedented highs. PJM warned of “imminent electricity reliability emergency” with projected peak loads of about 159,563 MW on July 1 and 162,860 MW on July 2, far above the previous summer peak of 166.3 GW recorded in 2006.

The grid operator asked the DOE to allow it to bypass environmental regulations so large‑load customers—primarily data centers and AI‑intensive facilities consuming 50 MW or more—could switch to on‑site fossil‑fuel generators within 15 minutes. This request follows concerns that new power plants now take twice as long and cost twice as much to build, creating a mismatch between soaring demand from AI‑driven data centers, electric vehicles and air‑conditioning and the available supply.

Industry leaders warned of possible rolling blackouts. Exelon CEO Calvin Butler said a critical power‑supply shortfall could cause outages as early as next year if investment does not keep pace. Temperatures above 38 °C (100 °F) across the Eastern U.S., combined with the Fourth of July celebrations and the FIFA World Cup, are intensifying the strain on the grid.