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.
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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 spent to build and power data centers has sparked concern about a speculative bubble surrounding the sector. Even some of AI’s biggest cheerleaders acknowledge the market is frothy, while still professing their belief in the technology’s long-term potential.
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[https://financialpost.com/pmn/business-pmn/biggest-us-power-grid-cuts-demand-outlook-on-overstated-ai-boom](https://financialpost.com/pmn/business-pmn/biggest-us-power-grid-cuts-demand-outlook-on-overstated-ai-boom)
