As the United States grapples with an unprecedented surge in electricity demand driven by AI data centers, the nation’s largest power grid, PJM Interconnection, is teetering on the edge of collapse. On August 28, 2025, the Department of Energy (DOE), under President Donald Trump’s leadership, issued an emergency order to extend the operation of units at the Pennsylvania Eddystone Generating Station, a critical step to prevent blackouts in the PJM region. This move highlights a growing energy crisis, exacerbated by policies that favored intermittent renewable energy over reliable baseload sources. With hyperscale AI data centers pushing grid limits, experts estimate the U.S. needs a 100-fold increase in power plant capacity to ensure grid resiliency. This article delves into the technical and economic dimensions of the crisis and Trump’s response.
The Crisis: AI Data Centers and Grid Strain
PJM Interconnection, serving 65 million people across 13 states and Washington, D.C., faces a dire supply-demand imbalance. The grid operator has issued nine energy emergency alerts since June 2025, driven by surging demand from AI data centers and heatwave-driven air conditioning loads. Hyperscale data centers, particularly in Northern Virginia’s “Data Center Alley,” consume 100–300 MW each, with modern AI server racks like Nvidia’s GB200 drawing 120 kW, double that of older models. The International Energy Agency (IEA) projects global data center electricity use will reach 1,000 TWh by 2026, equivalent to Japan’s annual consumption. In the U.S., data centers could account for 20% of electricity by 2030, up from 4% in 2022, per McKinsey & Company.
The DOE’s July 2025 grid reliability report warns that blackouts could increase 100-fold by 2030 if 104 GW of firm generation retires without adequate replacement. PJM expects a 70,000 MW summer peak increase to 220,000 MW by 2040, while 40 GW of coal and gas plants are slated to retire by 2030. Only 22 GW of new firm baseload generation is planned, leaving a massive dependable-capacity deficit.
[](https://www.energy.gov/articles/department-energy-releases-report-evaluating-us-grid-reliability-and-security)Trump’s Emergency Intervention: Technical Details
The DOE’s August 28 order, invoking Section 202(c) of the Federal Power Act, compels Constellation Energy to keep Units 3 and 4 at the Eddystone Generating Station (820 MW total capacity) operational beyond their May 31, 2025, retirement date. These 380 MW subcritical steam turbine units, commissioned in the 1960s and 1970s, can run on natural gas or oil, offering flexibility during peak demand or fuel price volatility. The order, extended from May 30, mandates PJM to use economic dispatch to minimize costs and requires daily reporting to ensure compliance with environmental regulations. It expires November 26, 2025, but signals a broader strategy to preserve critical generation.
[](https://www.powermag.com/trump-administration-issues-third-emergency-order-to-prevent-pjm-power-shortfall/)This follows similar DOE orders, including one on August 21 to keep a Michigan coal plant running, reflecting Trump’s push to reverse retirements of reliable baseload sources. The administration’s April 8 Executive Order (EO 14262) directs the DOE to develop a uniform methodology for assessing reserve margins and preventing the closure of essential power plants, prioritizing grid reliability and national security. The methodology evaluates outage risks based on frequency, magnitude, and duration, revealing a 30-fold risk increase even without retirements.
[](https://www.whitehouse.gov/presidential-actions/2025/04/strengthening-the-reliability-and-security-of-the-united-states-electric-grid/)[](https://www.energy.gov/articles/department-energy-releases-report-evaluating-us-grid-reliability-and-security)Economic Impacts: Soaring Costs and Consumer Burden
PJM’s capacity auctions reflect the crisis’s economic toll. The 2025 auction hit $16.1 billion, up from $14.7 billion, with capacity prices per megawatt-day at $329.17, a record high. Last year’s 600% price spike led to a settlement with Pennsylvania Governor Josh Shapiro, saving consumers $21 billion over two years by capping increases. Despite this, electricity rates have risen 15% since 2020, with projections of 20–30% increases in PJM’s region by 2030, driven by data center demand and grid upgrades. In Virginia, a December 2024 report estimates residents could see annual bill increases of $276 by 2030 due to data centers, potentially higher if projects are delayed.
[](https://www.nytimes.com/2025/08/14/business/energy-environment/ai-data-centers-electricity-costs.html)Independent power producers like Constellation, Talen Energy, NRG, and Vistra have invested $34 billion in 2025, primarily in natural gas plants, capitalizing on demand. However, consumers and small businesses face the burden, with states like Maryland warning of rolling blackouts. The DOE notes that grid upgrades and new generation could cost $1–$2 trillion by 2030, with ratepayers likely sharing the load unless regulators force tech companies to cover costs.
[](https://www.nytimes.com/2025/08/14/business/energy-environment/ai-data-centers-electricity-costs.html)The 100-Fold Power Plant Challenge
To meet AI data center demand and ensure grid resiliency, the U.S. needs a 100-fold increase in power plant capacity, according to energy experts. PJM’s 46 GW of approved projects are stalled by local opposition, supply chain issues, and financing, exacerbating the crisis. A single hyperscale data center requires 1–3 GW, and with 7.8 GW under construction and 31.6 GW planned in North America, the grid needs massive expansion. The DOE’s July report projects annual outage hours could rise from single digits to over 800 by 2030 without firm generation. Natural gas (40% of U.S. electricity) and nuclear are critical, with projects like Microsoft’s contract to restart Three Mile Island’s Crane Clean Energy Center (2027) and Amazon’s $20 billion nuclear-backed data center in Pennsylvania showing promise.
[](https://www.reuters.com/sustainability/boards-policy-regulation/americas-largest-power-grid-is-struggling-meet-demand-ai-2025-07-09/)[](https://apnews.com/article/trump-artificial-intelligence-energy-data-centers-f216660b80f992ae303b348dac0b2f87)Small modular reactors (SMRs), delivering 1.5–300 MW, could provide scalable, carbon-neutral power by 2030. However, building 100 times the current firm capacity requires streamlining permitting, which Trump’s EO aims to achieve, and addressing supply chain bottlenecks. The cost could reach $3.7–$7.9 trillion, per McKinsey, necessitating public-private partnerships.
Policy Clash: Green Goals vs. Reliability
Democratic governors like Phil Murphy (NJ), Wes Moore (MD), Josh Shapiro (PA), and Matt Meyer (DE) have pushed net-zero goals and coal phase-outs, which experts argue have strained PJM’s grid. André Béliveau of the Commonwealth Foundation told the Daily Caller News Foundation, “PJM has to work within the policy and political realities that they get from the states.” Amy Cooke of Always on Energy Research criticized these “unrealistic” net-zero policies, noting that retirements outpace new generation. Trump’s administration counters with a focus on “all-of-the-above” energy, including natural gas, nuclear, and coal, while axing regulations like the EPA’s Mercury and Air Toxics Standards to keep plants online.
[](https://www.esgdive.com/news/trump-coal-executive-order-doe-power-plants-ai-grid-reliability/744990/)Critics, like Sen. Ed Markey, argue that deregulation risks environmental harm, with data centers potentially polluting water and air via gas plants and diesel generators. However, renewable energy alone—80% of 2024’s new capacity—cannot meet AI’s constant demand due to intermittency, as noted by University of Pennsylvania’s Benjamin Lee.
[](https://apnews.com/article/trump-artificial-intelligence-energy-data-centers-f216660b80f992ae303b348dac0b2f87)[](https://fedscoop.com/trump-ai-action-play-energy-data-centers-grid/)The Path Forward: Balancing Innovation and Stability
Trump’s actions, including the January 20 National Energy Emergency declaration and streamlined permitting, aim to boost generation and transmission. However, challenges remain: PJM’s interconnection queue has over 2,000 delayed projects, and transmission lines need to quintuple capacity, per the DOE. Grid-enhancing technologies and demand management, as suggested in Trump’s AI Action Plan, could optimize existing infrastructure. Long-term, SMRs and public-private investments are critical to meeting the 100-fold capacity need while maintaining affordability.
[](https://www.reuters.com/business/energy/trumps-high-wire-act-transform-us-power-grid-wont-be-easy-2025-01-24/)[](https://www.eenews.net/articles/trumps-ai-plan-meets-a-stressed-american-electric-grid/)Consumers face tough choices, with energy efficiency measures and demand response programs offering short-term relief. Without bold action, the AI-driven energy crisis could lead to widespread outages and crippling costs, threatening economic and national security.