AI Takes on the Grid’s Bureaucracy

A growing concern among tech companies and policymakers is the looming power shortage on the U.S. electrical grid, driven in part by AI’s rapid expansion. Yet, there are terawatts of energy capacity already proposed and simply waiting for approval. The real challenge lies in navigating the bureaucratic backlog holding up these connections.

One of the most gridlocked regions is managed by PJM, the organization responsible for electricity flow across the mid-Atlantic states, Ohio, and eastern Kentucky.

Google and PJM Team Up to Speed Approvals

To address these delays, Google, along with PJM and Alphabet’s innovation lab Tapestry, announced a new partnership. Their goal: to use AI to streamline and accelerate key steps in the energy interconnection process.

With new AI models and centralized planning tools, both project developers and PJM aim to improve data verification and decision-making—particularly important when integrating variable sources like wind and solar into the energy mix.

Tech Giants Race to Secure Power

As AI usage skyrockets, tech companies are scrambling to ensure access to enough electricity. Major players like Amazon, Meta, Microsoft, and Google are investing heavily in nuclear and solar power.

The challenge isn’t just building new infrastructure—it’s getting these new sources connected to the grid. Across the country, 2.6 terawatts of energy capacity are currently waiting for approval. That’s more than twice the output of all existing U.S. power plants combined.

PJM’s Massive Backlog and Renewable Struggles

PJM has the longest queue in the U.S., with over 3,000 active applications totaling 286.7 gigawatts of potential energy. So overwhelmed, PJM stopped accepting new applications in 2022 and doesn’t plan to resume until mid-2026.

Clean energy is especially impacted. Nationwide, over 1 terawatt each of solar and battery storage projects are stuck in limbo. Even in PJM’s fossil-fuel-heavy territory, renewables dominate the queue: only 2.4% of applicants are natural gas projects.

The Future of the Grid Remains Uncertain

PJM’s grid has long leaned on fossil fuels, with natural gas increasingly replacing coal in recent years. Critics argue that PJM’s new approval process favors fossil projects, letting them move ahead of renewables.

Despite this, PJM insists its approach is “fuel agnostic.” Google, meanwhile, reiterates its commitment to fully decarbonizing its electricity use. With AI now in the mix, the hope is that automation and smarter planning can finally untangle the red tape—and unlock a cleaner, more efficient grid.