Core Insights - The surge in electricity demand driven by AI technology has led to a capacity crunch in the PJM grid, which serves nearly 40% of the nation's data center electricity needs [3][4] - The current electricity supply-demand situation is the most severe in decades, with supply gaps exceeding 5% of peak load during certain periods [3] - The PJM grid capacity auction reached a record high of $14.7 billion in 2023, indicating the significant impact of the AI data center construction wave on the electricity market [3][4] Group 1 - PJM has warned that there is no new generation capacity to meet the load demand from data centers [1] - Joe Bowring, president of Monitoring Analytics, emphasized the need for developers to bring their own power generation facilities [3] - A proposed fast-track review process for projects with independent power sources could help mitigate the crisis, allowing only financially and technically capable companies to enter the market [3][4] Group 2 - The mandatory self-built power plant policy is expected to reshape the competitive landscape of data centers [4] - Project development timelines may be reduced from 5-7 years to under 3 years, improving operational efficiency [4] - The proportion of electricity costs is projected to rise from 25% to over 35%, prompting companies to optimize their energy efficiency frameworks [4]