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Experts tell council data centers and demand growth are straining PJM and raising prices
Summary
Policy experts and PJM warned that rapid, concentrated data-center load growth and delayed generation/transmission projects are raising wholesale capacity costs; experts urged market redesign, state procurement and data-center financial commitments to avoid shifting costs to residents.
Policy experts and the regional grid operator told City Council that a large part of the recent upward pressure on energy prices is tied to steep demand growth — most prominently from large data centers and increased electrification — and that current market structures and planning timelines are not keeping pace.
Jamie Van Ostrin, a senior fellow at Penn’s Climate Center, cited recent studies showing data centers already represent a growing share of U.S. electricity use and noted forecasts of…
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