Tech Giants' Data Centers Boost U.S. Power Demand by $7.2 Billion
The power demand from tech giants' data centers has significantly increased the capacity auction in PJM, the largest power grid in the U.S., by $7.2 billion. This substantial rise, an 82 percent increase, is primarily driven by the massive peak load increases from companies like Microsoft, Meta, Amazon, and Google.
Microsoft, notably, is investing $3.3 billion into constructing the world's most powerful AI data center in Wisconsin, expected to come online in early 2026. Virginia and Ohio have seen the largest number of data center-related transmission projects. PJM's 2025 long-term load forecast predicts a peak load growth of 32,000 MW from 2024 to 2030, almost entirely due to data centers.
PJM is considering a 'bring-your-own-generation' requirement for new data center projects. This is in response to data centers increasing electricity bills and raising the risk of power shortages. More than $16 billion in payments to power companies has already been passed on to utility customers in the 13-state region. Transmission expansion costs of $4.3 billion have also been passed on to consumers in seven PJM states due to data center projects.
The Natural Resources Defense Council (NRDC) projects an increase of utility bills of up to $163 billion through 2033 due to data center power demand. To mitigate these impacts, NRDC suggests requiring data center developers to install their own generation and storage at new facilities. A report estimated that current and planned peak power additions nearly 12,000 megawatts to the expected peak power demand next summer, almost entirely due to data center load additions.
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