Data Center Demand Drives Higher PJM Capacity Costs
Rising data center electricity demand is increasing PJM capacity costs and prompting new proposals for managing large energy users. Monitoring Analytics, PJM Interconnection's independent market monitor, estimates that data center demand accounted for an estimated $6.3 billion, or 38%, of the costs from PJM’s latest capacity auction. Across the grid operator’s last four auctions, data center-related charges totaled about $29.4 billion, increasing capacity, energy, and transmission costs for customers throughout the region. Several proposals under…