PJM has spent the last three years rebuilding how it processes interconnection requests — and the reform genuinely worked, at least on paper. The problem for data center developers is that the queue was never the real bottleneck to begin with.
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THE REFORM, IN NUMBERS
Under the reformed cluster-study process, PJM says new projects entering its current cycle can expect an interconnection service agreement within one to two years, down from a process that previously took far longer. PJM has processed more than 170,000 MW of generation requests since 2023 and reports it has worked through the bulk of its pre-reform "transition queue" — the backlog of projects filed under the old rules. For its next interconnection cycle, PJM has received applications representing roughly 220 GW of proposed projects, though that figure remains preliminary.
Legacy transition queue: largely cleared through 2025–2026
Signed agreements awaiting energization: roughly 53 GW
Next cycle applications received: ~220 GW (preliminary)
THE BOTTLENECK MOVED — IT DIDN'T DISAPPEAR
PJM's own data shows AI infrastructure projects entering service in 2025 took an average of more than seven years to reach operational status — but the queue itself was no longer the primary delay. Projects spent roughly three years reaching an interconnection service agreement, then another four years waiting to actually come online after approval. The bottleneck has shifted downstream: transmission buildouts, substation capacity, and equipment lead times are now the primary obstacles between a signed agreement and an energized project.
This matches exactly what we track on the equipment side of this site: an approved interconnection is not a guarantee of on-time energization if the transformers, switchgear and substation equipment behind it haven't been ordered years in advance.
WHAT THIS MEANS FOR 2027 PLANNING
PJM is also facing a widening supply-demand gap: electricity demand is expected to grow by more than 30 GW between 2024 and 2030, driven largely by data centers, while new generation additions are struggling to keep pace — some estimates put PJM's capacity shortfall as high as 15 GW by 2030. That imbalance is part of why PJM's 2025/2026 capacity auction cleared at the FERC-imposed price cap across its entire footprint, a signal of how tight the supply-demand balance has become.
For a developer targeting energization in 2027 or 2028, the queue reform is genuinely good news for the front end of the process — but it does not change the multi-year equipment procurement window behind it. A faster interconnection agreement just moves the real constraint earlier in the project timeline, not away from it.