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Power Prices Triple on PJM as Heat Wave and Data Centers Collide

News | 2026/07/03 20:02

Power Prices Triple on PJM as Heat Wave and Data Centers Collide

Electricity demand hits record levels

This week, PJM Interconnection, which delivers power to 67 million people across 13 states and Washington, D.C., faced a surge in demand that hit roughly 163 gigawatts, just shy of a 20-year record. A heat dome pushing temperatures past 110 degrees prompted the U.S. Department of Energy to issue its third emergency order of 2026:

Wholesale prices spiked past $2,000/MWh, and operating reserves fell to 5,091 MW, leaving PJM little cushion against unplanned outages:

PJM's own figures show nearly all its demand growth through 2030 comes from data centers, and capacity costs have already jumped more than 11-fold:

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