Maryland OPC challenges PJM charge for AI data centre grid upgrades
Updated
Updated · Tom's Hardware · May 9
Maryland OPC challenges PJM charge for AI data centre grid upgrades
8 articles · Updated · Tom's Hardware · May 9
The complaint asks FERC to block a $2bn allocation that Maryland says would add $1.6bn to customer bills over 10 years, including about $345 per residential account.
Maryland argues its demand growth is far below data-centre-heavy states such as Virginia, Ohio, Pennsylvania and Illinois, so its ratepayers should not subsidise transmission projects from which they gain little benefit.
PJM serves 13 states and Washington DC, and the dispute highlights wider backlash over AI data centres' power demands, uncertain load forecasts and who should fund the infrastructure needed to support them.
Can non-binding pledges protect consumers from billions in grid upgrade costs fueled by data centers?
Should tech giants pay for the massive grid upgrades their AI data centers demand?
Who Pays for the AI Data Center Surge? Maryland’s FERC Complaint Over $16 Billion PJM Grid Costs
Overview
Maryland’s recent complaint to the Federal Energy Regulatory Commission highlights how the explosive growth of data centers—especially in neighboring Virginia—has caused a major strain on the electric grid, leading to costly infrastructure upgrades and rising electricity costs for Maryland residents. As Virginia has become the world’s largest data center market, energy demand has surged, forcing PJM Interconnection to plan expensive transmission investments. Maryland argues that these costs are unfairly falling on its consumers, even though the main driver is data center expansion elsewhere. The outcome of this dispute could reshape how such costs are shared across the region.