Data Centers Push Energy Costs Higher for Millions of Customers

WHO:

Fast Company - David Mills, PJM president and CEO

Fast Company - Julia Kortrey, director of Strategic Initiatives for the States Program at Evergreen Action

Fast Company - Monitoring Analytics, PJM’s independent market monitor

WHAT:

Fast Company - Americans could see an additional $6.3 billion added to their energy bills within the next three years due to data centers.

Fast Company - PJM’s auction results indicated that prices hit the cap of $325 per megawatt-day.

Fast Company - PJM’s December 2025 auction showed that data centers accounted for 40% of capacity costs, totaling $6.8 billion.

Fast Company - Since 2024, PJM auctions have added approximately $29 billion in utility costs due to data centers.

Fast Company - Utilities across the country requested $18.6 billion in electric and gas rate increases during the first half of 2026.

WHERE:

Fast Company - PJM manages the power grid for 13 states and the District of Columbia, serving 67 million customers.

Fast Company - Oncor, an electric utility in Texas, requested a $1.2 billion rate increase.

WHEN:

Techmeme - The $6.3 billion increase in customer bills is expected to occur through 2029.

WHY:

Fast Company - The primary driver of increased electricity demand is data centers, which can be developed faster than electricity generation methods.

Fast Company - Julia Kortrey stated that the rate hikes were avoidable and criticized PJM for not promoting cheaper, clean energy.

HOW:

Fast Company - PJM’s annual power auction secures electricity generation and sets costs three years in advance by allowing power providers to bid on prices for peak demand times.

(UPDATED July 15, 2026 21:20 UTC)

Americans could see an additional $6.3 billion added to their energy bills through 2029, primarily driven by the increasing demand from data centers, which accounted for 40% of capacity costs in PJM's December 2025 auction. PJM's recent auction results revealed that prices reached the cap of $325 per megawatt-day, contributing to approximately $29 billion in utility costs since 2024, while utilities across the country requested $18.6 billion in electric and gas rate increases in the first half of 2026. Julia Kortrey from Evergreen Action criticized PJM for not promoting cheaper, clean energy, suggesting that these rate hikes were avoidable as data centers are being developed faster than electricity generation methods can keep up.