PJM Independent Market Monitor: Data Centers Caused 76% Wholesale Electricity Price Spike -- 'Price Impacts Are Very Large and Not Reversible'

Written By Phil Zalewski

The most consequential energy cost intelligence to emerge in 2026. PJM's independent watchdog confirmed wholesale prices rose from $77.78/MWh (Q1 2025) to $136.53/MWh (Q1 2026) -- a 75.5% increase -- driven primarily by data center demand. Capacity costs specifically surged 398% in the quarter. The report states bluntly: 'Without the AI infrastructure built out, the capacity market would not have seen the same tight supply demand conditions, the same high prices.' Supply 'is not adequate to meet the demand from large data center loads and will not be adequate in the foreseeable future.' (more)

Phil Zalewski
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