Here’s a number that should make you uncomfortable: ERCOT’s interconnection queue, the line of projects waiting to plug into the Texas power grid, has ballooned to over 233 GW by early 2026. That’s a nearly 300% increase year-over-year.
The culprit is not mysterious. More than 70% of those ERCOT requests come from data centers, the sprawling server farms that power everything from ChatGPT to cloud computing.
Two grids, one massive problem
PJM Interconnection, which manages the grid across 13 states and serves roughly 65 million people from Virginia to Illinois, is staring down its own version of the same crisis. PJM forecasts peak load growth of 32 GW by 2030, with data centers as the primary driver.
It has already missed targets by several gigawatts, which is the kind of shortfall that threatens grid reliability and pushes electricity prices higher for everyone, not just the companies running AI workloads.
Total US data center power demand has now crossed 150 GW, with PJM and ERCOT absorbing a disproportionate share of new facility requests. Most planned data centers are concentrated in just seven states, creating geographic choke points where grid infrastructure simply was not built for this kind of load.
The most famous bottleneck is Northern Virginia’s “Data Center Alley,” which has been the epicenter of US cloud infrastructure for over a decade. Texas hubs are rapidly catching up, drawn by cheaper land, fewer regulations, and a deregulated energy market.
The cost is already showing up
Data centers accounted for approximately 40% of recent capacity auction costs in PJM, resulting in expenditures of around $6.5 billion. That figure lands on ratepayers, utilities, and ultimately consumers in the form of higher electricity bills.
Bitcoin miners enter the equation
Bitcoin miners are classified as large flexible loads in ERCOT and have become active participants in curtailment programs, agreeing to power down during peak demand in exchange for grid access.
Both PJM and ERCOT are exploring innovative interconnection strategies to manage the flood. In ERCOT, proposals include batch processing of applications and standardized regulations under state legislation designed to bring order to what has become a chaotic first-come, first-served system. PJM is considering flexible connection rules and emergency curtailment provisions for large loads during peak periods.
Miners are engaging with these regulatory proposals alongside data center operators, positioning themselves as cooperative grid participants rather than adversaries.
What this means for investors
Capacity shortfalls in PJM have already driven auction prices higher, and if the 32 GW demand forecast materializes without matching supply growth, electricity costs across the mid-Atlantic and Midwest could climb meaningfully.
For crypto investors specifically, miners that can demonstrate grid flexibility—the ability to curtail during peak demand—will likely secure more favorable interconnection terms than those that can’t.