AI data centers trigger massive 'irreversible' 76% electricity price spike in largest US region — federal watchdog demands tech giants pay for their own power infrastructure
A federal watchdog reports that data centers, particularly those supporting AI, have caused a 76% spike in electricity prices in the U.S.'s largest power region, PJM Interconnection. The surge is attributed to surging demand and outdated market rules that spread infrastructure costs to all consumers. The report urges tech giants to pay for their own power infrastructure to prevent further burden on households and small businesses.
- ▪Wholesale electricity prices in the PJM region rose from $77.78 per MWh in Q1 2025 to $136.53 per MWh in Q1 2026.
- ▪Monitoring Analytics found that excluding data center demand would have prevented the current price surge in the capacity market.
- ▪The watchdog recommends that data centers negotiate power directly with producers to avoid inflating costs for general consumers.
- ▪PJM Interconnection's proposal to include data center loads in general capacity forecasts risks raising prices for all electricity customers.
- ▪President Trump previously urged major AI companies to pay for their own power infrastructure, but no binding legislation currently enforces this.
- ▪Federal regulators cannot stop cost-shifting without new laws from Congress.
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Tech Industry AI data centers trigger massive 'irreversible' 76% electricity price spike in largest US region — federal watchdog demands tech giants pay for their own power infrastructure News By Jowi Morales published 16 May 2026 Data centers are skewing the power supply market, resulting in higher prices for everyone. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: Shutterstock) Share Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Email Share this article Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Monitoring Analytics, the federally mandated independent watchdog that keeps an eye on the critical PJM Interconnection that distributes power…
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