PJM Interconnection, the largest U.S. power grid operator, is moving to carry out a fundamental overhaul as surging demand from AI and cloud computing rises, TechCrunch reported on Thursday.

In a white paper released this week, PJM said it has only "years, not decades" left to fundamentally change how it operates. PJM CEO David Mills (데이비드 밀스) warned that "the current situation is unsustainable."

PJM oversees areas with heavy concentrations of large data centres, including Northern Virginia. TechCrunch said how PJM changes could have ripple effects across the technology industry.

PJM temporarily halted grid interconnection requests from new power plants and renewable energy facilities in 2022, citing a backlog of applications covering several years.

It prevented new generation from even applying at a time when power demand began rising for the first time in decades. After PJM resumed accepting applications, power companies and developers submitted more than 800 interconnection requests totalling 220 gigawatts.

Bill Fehrman (빌 페어먼), CEO of American Electric Power, one of PJM's largest utilities, said he is considering leaving PJM, saying PJM in its current state does not provide confidence it will resolve such problems soon.

As surging data centre demand collides with another disruption in the shift to renewable energy and battery technology, PJM faces a difficult situation. TechCrunch said some analysis also suggests PJM has little time left as politicians threaten power price caps and utilities hesitate to participate.