Data Center Electricity Demand to Increase Costs Across 13 States After PJM Power Auction

Grid operator PJM announced the results of a power auction this week for the 13 states under its jurisdiction, covering the period from June 2028 through May 2029. The auction revealed that data centers are expected to drive up electricity costs by billions of dollars across these states in the coming years.

This development highlights the growing electricity demand from data centers and its impact on regional power markets. Monitoring Analytics, an independent market monitor, has been involved in overseeing these market activities.

The 13 states served by PJM will likely face increased electricity expenses as data center energy consumption rises, reflecting broader trends in technology infrastructure growth and energy policy considerations.

Sources:

• The Hill: Data center electricity demand is expected to drive up costs after recent power auction