Monitoring Analytics, the federally mandated independent watchdog that keeps an eye on the critical PJM Interconnection that distributes power around the U.S., said in a new report [PDF] that a massive 75.5% increase in power costs in the largest region of the U.S. has been directly caused by data centers, and it also blamed the regional market operator for failing to keep up with the rising demand. The price increases have been steep; wholesale electricity prices went up from $77.78 per MWh in the first quarter of 2025 to $136.53 per MWh in the same period of this year.
“The price impacts on customers have been very large and are not reversible,” the watchdog said in the report. “The price impacts will be even larger in the near term unless the issues associated with data center load are addressed in a timely manner, prior to the next BRA (base residual auction), scheduled for June 2026.” Monitoring Analytics says that PJM Interconnection is trying to rewrite the rules for the capacity market and bake in data center demands into its forecasts. The watchdog is critical of this proposal as it will raise the prices for all electricity consumers, putting an unnecessary burden on households and small businesses.
