Power Prices in Eastern U.S. Spike 76% Thanks to AI Data Centers

Key Points:

• PJM Interconnection, the largest U.S. power grid serving 67 million people across 13 states, is experiencing a nearly 76% increase in wholesale electricity prices due to rising demand from AI data centers.
• Power prices in the region surged from $77.78 to $136.53 per megawatt-hour in the first quarter of 2026, with data center load growth identified as the primary driver of tight supply and high prices.
• The report from Monitoring Analytics warns that current capacity is insufficient to meet data center demand, and this shortage will persist through at least May 2028, leading to higher transmission, energy, and capacity costs for consumers.
• The energy generation mix is shifting, with decreased coal and wind usage and increased reliance on oil, solar, and natural gas to meet demand changes driven by data center growth.
• Public opposition to data centers is high, with 71% of Americans opposing their construction locally, and more people preferring to live near nuclear power plants than data centers due to concerns about resource strain and electricity costs.