According to the market monitor, data centers made up 40% of PJM’s capacity costs in the December auction. That equals out to roughly $6.5 billion.
The vast majority of that cost ($6.2 billion) pertains to data centers that don’t even exist yet. These campuses are expected to come online in the 2027/2028 delivery cycle that begins in June 2027.
This has been the case in PJM’s last three auctions. Data center forecasts have accounted for 45% of capacity costs, or roughly $21.3 billion.
Rising costs have been a large concern for many regions, but especially within PJM. As the largest grid in the country, PJM serves roughly 67 million people.
Many solutions have been proposed or tested, including capacity price caps and plans to limit large load connections to the grid. But PJM has yet to find a solution that works and is suitable for all involved.
