Natural Gas Dominates PJM Interconnection Queue Amid Data Center Boom

Recent reforms to the interconnection queue at PJM, the largest grid operator in the United States, have resulted in a pronounced shift toward fossil fuel generation. While the procedural overhaul was designed to eliminate speculative applications through stricter financial requirements, natural gas proposals now make up roughly 50 percent of the 201.5 GW qualified for study in the initial processing round.

The growing demand for firm, uninterrupted power from data centers is driving developers toward conventional generation.

According to Inside Climate News, this represents a reversal from three years ago, when the PJM queue consisted of 90% wind, solar, and battery proposals. Today, natural gas leads the pipeline with 99.8 GW, followed by battery storage at 60 GW and solar at 11.8 GW. Although storage and solar lead in sheer project volume—with 314 and 117 applications respectively—their cumulative capacity is significantly lower.

Analysts warn that building this pipeline depends on variables largely outside of PJM’s direct control, including supply chain bottlenecks, state-level permitting delays, local opposition, and the cost of capital. Failure to address these external barriers in the face of rising load could expose the region to very high rates and long-term reliability risks.

Source: Inside Climate News