Utility Dive•8 days ago
Data centers were 40% of PJM capacity costs in last auction: market monitor
Key Takeaway
The rapid growth of data centers is a dominant force driving up capacity costs in PJM, presenting both significant revenue opportunities for capacity developers and increased costs for large power consumers.
AI Summary
- •New data center forecasts, beyond existing facilities, accounted for 45% of the $47.2 billion in capacity costs across PJM's last three capacity auctions.
- •This significant demand from future data centers is a primary driver of PJM's capacity market costs, indicating a robust and growing need for new capacity resources.
- •For developers, this trend signals strong revenue opportunities for new capacity projects in PJM; for large power consumers, including data centers themselves, it translates to higher capacity charges on their electricity bills.
Topics
capacity-marketdatacenterpjm