Data Centers Drive 41% Wholesale Power Price Jump in PJM
The U.S. Energy Information Administration forecasts wholesale electricity prices in PJM, the largest North American power market, to rise 41% in 2026, far above the 11% national average. PJM’s market monitor attributes the pressure primarily to data center load growth, which is tightening supply and raising capacity prices. If planned data center projects do not proceed, households could still bear the cost of grid upgrades financed at Treasury yields above 5%.
PJM spans all or parts of 13 states plus Washington, D.C., serving over 67 million people. EIA's October outlook puts its 2026 wholesale price increase at 41%, while U.S. average prices rise 11% to $52 per megawatt-hour and Northwest Mid-Columbia falls 23%.
Recent pressure included severe summer heat and winter storms; Henry Hub gas reached $30.72 per million BTU on January 23 before falling to $3.03 by October 6. PJM's monitor continues to point to growing data-center demand as the leading cause of constrained supply and elevated capacity prices.
Households across PJM's 13-state footprint could eventually see higher retail bills, though likely far below the 41% wholesale forecast because delivery, capacity, and regulatory charges also shape rates. Businesses may face rising power costs, while utilities and data-center developers could influence how much new infrastructure is built. If planned projects stall or use less electricity than expected, remaining customers may still help pay for grid upgrades financed at elevated borrowing costs. This may sharpen debates over who bears AI-related infrastructure expenses.