Data centers are driving up energy costs for consumers
AI data centers—especially in Virginia's "Data Center Alley"—are using so much power that electricity capacity prices across the PJM Interconnection region are jumping.
For June 2026 to May 2027, the price hits $329.17 per megawatt-day.
People in places like New Jersey could see noticeable hikes on their energy bills.
Consumers will feel the heat
About 63% of the price spike comes from data centers alone, adding roughly $9.3 billion a year to customer costs across PJM.
In Washington D.C., monthly bills are set to rise by $21 starting June 2025—half of that just for capacity charges.
PJM expects overall bill bumps between 1.5% and 5% beginning June 2026.
What can be done?
Analysts want reforms, like updating how PJM runs its auctions (which some say are too slow and block new energy sources).
Other ideas include creating separate markets for new vs existing power and making data centers sign long-term contracts that help fund new capacity.