Key US Power Grid Cuts Demand Outlook on Overstated AI Boom (2)

The biggest US grid operator dialed back its forecast for power demand growth, offering a reality check to the frenzy around the artificial intelligence boom.

PJM Interconnection LLC, which manages the 13-state eastern grid from the mid-Atlantic to the Midwest, cut its peak demand forecast for the summer of 2027 to about 160 gigawatts. That’s down from a previous outlook of about 164 gigawatts.

Massive electricity consumption from the data centers that run artificial intelligence has transformed the global energy landscape, but AI remains somewhat unproven as a profit-making business model. Uncertainty about the hundreds of billions of dollars being ...