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PJM: Rapid AI‑related data‑center growth is straining capacity markets and could push up New Jersey rates
Summary
PJM told New Jersey legislators that a sudden surge in data‑center demand tied to AI has driven capacity prices sharply higher and could raise consumer bills unless states and FERC act to speed new generation, ease siting and clarify interconnection rules.
Jason Stanek, executive director of PJM Interconnection, told the New Jersey Senate Legislative Oversight Committee that the growth in data centers supporting artificial‑intelligence work has driven “eye‑popping” demand increases and triggered sharp capacity‑market price spikes that will affect customer bills this summer. Stanek said PJM’s forecast shows data centers rising from roughly 4% of PJM’s load today to a projected 12% within five years and that PJM’s most recent capacity auction cleared at about $269 per megawatt‑day in the New Jersey zone.
Stanek said the steep price rise reflected a combination of unprecedented load projections and retirements of dispatchable resources. He described several…
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