US Largest Power Grid Operator to Build New Power Plants Faster

Natural Gas Power Generation
Likely to Increase

To respond to the rapidly increasing power demand of artificial intelligence (AI) data centers, the largest power grid operator in the United States is expected to accelerate the review process for new power plant construction.

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According to Bloomberg on the 12th (local time), PJM Interconnection, the largest power grid operator in the U.S., has received federal approval to expedite the review process for projects related to new power plant construction.

Industry experts point out that additional power plants need to be built to meet the surging AI power demand. Travis Miller, a Morningstar researcher, said, "It is very important that the federal government proceeds with procedures to enable rapid construction of new power plants," adding, "The eastern region of the U.S. will be a key source of data center growth, and power plants are one of the critical factors."

In particular, natural gas power generation is expected to gain attention over renewable energy sources such as nuclear, wind, and solar power as a power supply source. Typically, natural gas power plants are cheaper and faster to build compared to nuclear plants. Also, unlike wind and solar, they can operate regardless of weather conditions, making them a competitive power supply source. Terry Viswanas, senior researcher in the energy sector at CoBank, said, "Data centers require a steady 24-hour power supply. It cannot be intermittent like renewable energy," and evaluated, "This measure is a signal that regulators recognize not all power sources are equal in competition."

Bloomberg predicted that large natural gas power plants are likely to be included in this expedited review. This is because PJM, the power grid operator, is likely to prioritize power sources capable of continuous year-round power supply, such as natural gas.

However, there are also critical views regarding natural gas power generation. Some argue that the federal government's measure favors certain power sources. Nikki Shu, a researcher at Bloomberg Intelligence, pointed out, "This decision is particularly advantageous for natural gas power plants," and added, "It is also uncertain how effective it will be in resolving the expected power shortage issue by 2030."

This content was produced with the assistance of AI translation services.