Data Centers to Add Billions in Power Costs in 13 States

PJM, the nation’s largest electrical grid operator, on Tuesday released results of an electricity auction that would add $6.3 billion in costs to the bills of millions of households and businesses within the next three years, an increase driven by the power demands of data centers.

During the annual auction, power companies supplied prices that they were willing to accept to supply electricity to PJM at times of peak demand. Those prices are then factored into the electricity rates that are eventually charged to the grid’s customers in 13 Eastern states and the District of Columbia.

In a statement, PJM said data centers were increasing electricity demand throughout the region.

“These auction results show that demand for electricity continues to grow faster than electricity supply,” David Mills, president and chief executive at PJM, said in an announcement of the auction results. “We are working with government and industry leaders on multiple fronts to restore that balance by bringing on new generation as fast as possible and managing the growth of new load on the grid.”

Over the last few years, individuals and politicians have grown frustrated with PJM’s operations as electricity prices have steadily increased. At the same time, anger over data centers has spread nationwide. New York on Tuesday announced the nation’s first statewide moratorium on construction of the giant facilities, a one-year pause to assess their impact on the environment and energy use.

Article source: https://www.nytimes.com/2026/07/14/business/energy-environment/pjm-electricity-prices-data-centers.html