A tightening electric generation capacity market across the PJM region (spanning 13 mid-Atlantic and Midwestern states plus DC) is driving up rates for consumers, largely due to data center demand. Capacity auction prices have surged from $28.92/MW-day for 2024/2025 to $269.92/MW-day for 2025/2026 and $329.17/MW-day for 2026/2027.

The spike coincides with an AI-driven surge in forecasted energy consumption. PJM's Dominion Zone, covering northern Virginia's "data center alley," saw load growth projections jump from 5,700 MW in 2022 to over 20,000 MW by 2037. Monitoring Analytics estimates data centers caused 63% of the 2025/2026 price increase, translating to $9.3 billion in costs recovered from ratepayers.

Residential bills are rising across the region: $21/month in DC, $18/month in western Maryland, and $16/month in Ohio. Starting June 2026, an additional $1.4 billion in capacity costs will hit customers. The trend highlights power supply as a growing constraint on data center expansion, with infrastructure build-out timelines, climate goals, and ratepayer tolerance posing limits.