PJM adds $6.3 billion in electricity costs across 13 states due to data center demand

PJM, the largest U.S. electrical grid operator, will add $6.3 billion in electricity costs for millions of consumers across 13 states and D.C. over the next two to three years. The increase, announced after an annual auction, is driven by soaring power demand from data centers, which have already added $29 billion in costs since 2024. PJM's CEO stated that demand is outpacing supply.

PJM electricity auction results

• ▪PJM, the largest U.S. electrical grid operator, will add $6.3 billion in electricity costs for consumers following its annual auction
• ▪The auction results, which factor into consumer electricity rates, were released on July 14, 2026

Data center power demand

• ▪Since 2024, data centers have added $29 billion in costs to PJM regions
• ▪PJM's grid includes the world's largest cluster of data centers, located in Northern Virginia
• ▪The cost increase was driven by the booming energy demands of data centers

Consumer cost increases

• ▪PJM's grid supplies electricity to 67 million people from Virginia Beach to Chicago
• ▪The increased costs will affect millions of households and businesses across 13 Eastern states and the District of Columbia
• ▪The $6.3 billion in costs will be added to consumer bills over the next two to three years

Grid supply challenges

• ▪PJM President and CEO David Mills stated that demand for electricity is growing faster than supply
• ▪Consumer advocate Patrick Cicero said that high prices are likely to remain due to continued demand growth

Data center construction moratorium

• ▪New York's one-year pause on data center construction is intended to assess their environmental and energy impact
• ▪On July 14, 2026, New York announced the nation's first statewide moratorium on new data center construction