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Billions in Data Center-Driven Power Costs Coming to Eastern States & More

July 22, 2026 (1 min read)

Data Centers to Increase Power Costs in 13 States by Billions

Power costs for millions of households and businesses in 13 eastern states and the District of Columbia will increase by $6.3 billion within the next three years, according to the results of an electricity auction held by PJM, the largest electrical grid operator in the country. PJM conducts the auction each year to determine the prices power companies will accept for the electricity they supply at times of peak demand. Those prices are factored into the rates charged to the grid’s customers. In a statement, PJM said that “electricity demand is growing faster than new generation can be built to supply it” and that the “primary driver of that growth is data centers.” (NEW YORK TIMES)

State Lawmakers Pump Brakes on Data Centers

Legislation aimed at pausing construction of data centers has been introduced in 14 states. None of those measures have been passed yet. But last week New York became the first state to impose a statewide moratorium on new “hyperscale” data centers through an executive order signed by Gov. Kathy Hochul (D). Other states have also enacted laws eliminating tax incentives for data centers or requiring them to report their energy and water usage. (PLURIBUS NEWS, NEW YORK GOVERNOR’S OFFICE)

—Compiled by SNCJ Managing Editor KOREY CLARK

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