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PJM and Talon Energy to Boost Power Supply as US Faces Growing Data‑Center Demand

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News Analysis IndiaReporter
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August 20, 2026
05:31 AM
PJM and Talon Energy to Boost Power Supply as US Faces Growing Data‑Center Demand

WASHINGTON — PJM Interconnection, the regional transmission organization overseeing the Mid‑Atlantic grid, announced a partnership with Talon Energy Corporation to increase power output at a key Maryland facility.

The collaboration follows an emergency order from the Energy Department that authorises the Wagner Generating Station’s Unit 4 in Anne Arundel County to operate above its standard capacity. The measure, effective from August 20 through November 17, aims to safeguard electricity service for an estimated 65 million people.

PJM had requested the federal intervention after forecasting that peak‑hour demand would outstrip available supply in the coming months. By running the plant at higher output, the grid can better absorb the load generated by an expanding cluster of data centers and AI‑intensive applications across the region.

The Mid‑Atlantic, especially the Northern Virginia corridor, hosts some of the nation’s largest data‑center hubs. Companies are investing heavily in new sites to support cloud‑computing, high‑performance AI workloads and massive storage requirements.

These facilities consume large, continuous amounts of electricity for both computing and cooling, adding unprecedented stress to an already strained electric network that is also coping with extreme weather events and the phase‑out of older power plants.

Energy Secretary Chris Wright emphasized that the temporary directive is a stop‑gap to maintain grid reliability while longer‑term infrastructure upgrades are planned. “Ensuring affordable, dependable power for the region remains our top priority,” he said.

The emergency order is expected to keep lights on for households and businesses throughout the winter months, buying time for utilities and policymakers to address the underlying capacity challenges.

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