Overview
- PJM’s capacity price has jumped from about $28.92 per megawatt-day in 2024 to roughly $329.17 per megawatt-day in 2026, a surge driven mainly by clustered AI data-center builds in the 13-state PJM region.
- Manufacturers are seeing immediate pain from higher capacity charges, with the Belden Brick Company reporting a monthly capacity fee rise from $1,600 to $12,000 and Metallus saying its electricity costs climbed about 70% since 2024.
- Searing summer demand forced PJM to ask some users to curb usage to avoid rolling blackouts, showing the grid is under near-term strain where data centers have concentrated load faster than new power plants or transmission can be added.
- Regulators are racing to respond: FERC has proposed charging transmission fees on onsite generation and multiple states have pending rules to manage data-center demand, and manufacturers are appealing for exemptions and greater scrutiny of demand estimates.
- Capacity charges pay generators to meet peak demand so they affect big energy users most, and experts say the clash between rapid data-center growth, plant retirements and transmission limits could raise long-term costs for factories and spur shifts to onsite power, changed shifts, price increases, or relocation.