Wholesale electricity prices on the PJM grid hit $136.53 per MWh, driven by surging data center demand and grid constraints.
Wholesale power prices on the PJM Interconnection, the largest U.S. electrical grid, jumped 76% year-over-year to $136.53 per megawatt-hour. The spike reflects soaring demand from data centers, particularly in Northern Virginia, outpacing grid capacity.
Last year’s prices stood at $77.78 per MWh. The grid operator paused new generating source applications in 2022 due to a backlog, exacerbating supply constraints. An independent monitor warned the price surge is irreversible without timely intervention.
The report highlights a structural mismatch between grid infrastructure and the energy needs of an AI-driven economy, signaling broader challenges for U.S. power markets.