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Data Centers Drive Record Costs in PJM Power Capacity Auctions
Market Intelligence Analysis
AI-Powered
Why This Matters
Data centers accounted for 40% of the costs in PJM's December capacity auction, with $6.2 billion attributed to future data centers that may come online by 2027/28.
Market Impact
Market impact analysis based on bearish sentiment with 80% confidence.
Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term
Article Context
Note: This is a brief excerpt for context. Click below to read the full article on the original source.
Data center load accounted for $6.5 billion, or 40%, of the $16.4 billion in costs from the PJM Interconnection’s December capacity auction, according to the grid operator’s independent market monitor. About $6.2 billion of those costs is related to data centers that haven’t been built but could come online by PJM’s 2027/28 delivery year that begins on June 1, 2027, Monitoring Analytics, the market monitor, said in a report released Monday. In PJM’s last three base capacity auctions, costs related to data center…
Original article published by
OilPrice.com
on January 8, 2026.
Analysis and insights provided by AnalystMarkets AI.
Analysis and insights provided by AnalystMarkets AI.