US power grids hit record demand as AI and extreme heat collide

Electricity grids across the United States are hitting record-breaking demand levels as extreme heat waves collide with growing power consumption from AI data centers and air conditioning. PJM Interconnection, the nation’s largest grid operator serving 65 million people, exceeded its summer forecast of 154 gigawatts just days into the season, averaging over 160 GW on Monday alone.

The big picture: Climate change is driving temperatures higher while electricity demand simultaneously swells from data centers powering AI applications, creating a perfect storm for grid operators nationwide.

• PJM forecasts show summer peak demand could reach nearly 210 GW by 2035, well beyond today’s 179 GW capacity.
• Multiple grid operators are experiencing strain, with MISO (the Midwest grid operator) expecting near-peak demand this week and the Department of Energy issuing emergency orders for Southeast utilities.
• The pattern represents an accelerating challenge as both climate impacts and AI infrastructure expansion continue.

What you should know: Demand response programs are emerging as a critical tool to manage peak electricity usage without building massive new power plants.

• PJM’s demand response programs total almost 8 gigawatts of power—equivalent to avoiding multiple nuclear plants worth of generation capacity.
• These programs involve utilities paying customers to reduce usage during peak periods or asking them to delay running appliances during high-demand hours.
• The strategy becomes essential as grids must be built for absolute highest demand moments, leaving significant capacity idle most of the time.

Key details: Small amounts of flexibility in power usage could dramatically reduce infrastructure needs across the grid.

• If data centers agreed to power curtailment for just 0.5% of operating time (about 40 hours annually), PJM could handle 18 GW of new demand without adding generation capacity.
• Nationally, this level of flexibility would allow grids to absorb an additional 98 gigawatts of new demand—nearly equivalent to all US nuclear reactor capacity of 97 GW.
• Current heat wave conditions are testing these systems early, with peak demand typically occurring in July or August rather than June.

Why this matters: The collision of AI-driven electricity demand and climate-intensified heat waves is reshaping how utilities must think about grid management and capacity planning.

• Traditional approaches of simply building more power plants may prove insufficient and economically unsustainable.
• Demand flexibility offers a path to accommodate both AI infrastructure growth and climate adaptation without proportional increases in generation capacity.
• Early summer peaks suggest utilities may need to reassess seasonal planning assumptions as climate patterns shift.