AI Data Centers Drive 75.5% Electricity Price Spike in Largest US Power Grid

Wholesale electricity prices in the PJM Interconnection, the largest regional power grid in the United States, surged 75.5% year-over-year in the first quarter of 2026. The price reached $136.53 per MWh, up from $77.78 per MWh in the same period of 2025. A report from independent market monitor Monitoring Analytics attributes the spike to rising demand from AI data centers.

Watchdog calls for direct power deals

Monitoring Analytics described the price impacts on customers as very large and not reversible. The watchdog recommends that data centers negotiate directly with power producers to avoid shifting costs to consumers. The Trump administration secured a non-binding ratepayer protection pledge from tech giants, but the pledge does not enforce direct negotiations.

The price increase highlights the strain that AI infrastructure places on regional power grids. PJM serves millions of customers across multiple states, and the jump in wholesale rates could lead to higher retail electricity bills. Monitoring Analytics has called for structural changes to prevent further cost shifting.

Monitoring Analytics has not confirmed whether any data centers have begun direct power purchase agreements. The long-term effect on retail rates remains unclear.