More than half of the power plants in the PJM market running on fossil fuels have either deferred or canceled plans to retire as soaring electricity demand from AI data centers has operators use all available capacity to ensure the flexibility and reliability of the grids.
PJM Interconnection is the biggest power grid in the United States, whose area covers 13 mid-Atlantic and Midwest states and the District of Columbia. According to a Reuters analysis of company filings in the PJM region, around 60% of the power plants running on oil, natural gas, and coal, and scheduled to retire soon, have either delayed or canceled these plans altogether.
Most of these are also the so-called peaker units, which only run at periods of peak demand.
But the soaring power demand, mostly as a result of the AI surge and data center buildout, is now forcing peakers to delay or cancel retirements.
The Trump Administration has said and strongly supported all power sources to meet the surging U.S. demand.
Coal, for example, saw increased production this year, supported by the Trump Administration and the rising price of natural gas.
The U.S. coal production increase in 2025 has resulted from rising demand for coal, the U.S. Energy Information Administration (EIA) notes. Demand has increased due to higher natural gas prices, delayed coal plant retirements, and strong demand for heating in the earlier winter months this year.
Last month, the U.S. Department of Energy also extended a $1-billion loan to help Constellation Energy restart the Three Mile Island Unit 1 nuclear reactor to add baseload power to the grid and help the AI advancement in the United States.
Nuclear energy will be one of several winners of the AI and data center boom, alongside natural gas and power purchase agreements for renewable energy.
By Charles Kennedy for Oilprice.com
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