Back to All Media White House, Governors, and PJM Respond to Grid Capacity Shortfall Data centers, domestic manufacturing, and other drivers of economic growth are generating significant new demand for electricity across the country. Grid operators are working to ensure that new generation capacity keeps pace. In PJM Interconnection—the nation’s largest grid operator—the December 2025 capacity auction fell 5.2% short of reliability requirements for the 2027-2028 delivery year, the first time PJM has experienced such a shortfall. Capacity auctions are a mechanism used in some regions for ensuring enough generation exists to meet projected demand. PJM’s shortfall has prompted two new proposals for how to accelerate new generation. Share Article Data centers, domestic manufacturing, and other drivers of economic growth are generating significant new demand for electricity across the country. Grid operators are working to ensure that new generation capacity keeps pace. In PJM Interconnection—the nation’s largest grid operator—the December 2025 capacity auction fell 5.2% short of reliability requirements for the 2027-2028 delivery year, the first time PJM has experienced such a shortfall. Capacity auctions are a mechanism used in some regions for ensuring enough generation exists to meet projected demand. PJM’s shortfall has prompted two new proposals for how to accelerate new generation.