Data Center Electricity Demand Is Expected to Increase Costs after Recent Power Auction

Data centers are expected to add billions in electricity costs across 13 states in the years ahead after a recent power auction.

Grid operator PJM this week announced the results of an auction to buy power for the 13 states that it serves for June 2028 through May 2029. PJM serves 67 million people across the Eastern and Midwest U.S. It has consumers in Ohio, Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia and Washington, D.C.

Monitoring Analytics, an independent market monitor for PJM, found that of the $16.4 billion in total capacity market charges that will result from the auction, about $6.3 billion will come from demand that’s driven by data centers. 

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