Speaking of PJM: Its independent watchdog just released a scorching report that argues “data center flexibility” is currently little more than a dangerously expensive myth. (Latitude Media)
The reality check: IMM argues that, while flexibility sounds great in a pitch deck, PJM currently lacks the technical ability to dispatch specific data centers like power plants (unlike ERCOT), making voluntary curtailment a massive reliability gamble.
The stakes are high: Modeling shows that if just 10% of new AI load fails to show up as demand response when needed, capacity costs could skyrocket from ~$400M to over $5.4B.
The solution: IMM says it’s not “trust me” protocols but requirements for data centers to “bring their own generation.”