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Wire · technology

The AI boom's hidden electricity bill — and why you're paying it

Published

24 July 2026

Topic

technology

Geography

United States

Source

Read at fortune.com

Verified

Fusion42 · 24 July 2026 · Fusion42 review

PJM Interconnection's capacity auction hit its price ceiling for the third consecutive time as AI data centre demand outpaces grid supply by 6.8 gigawatts, forcing ordinary ratepayers to subsidise the cost of new generation that should be borne by hyperscalers through direct supply contracts.

◆ The Wire takeaway

If you're selling power infrastructure—transformers, substations, transmission lines, or backup generation—hyperscalers are now your customer, but they're not paying for you. Call PJM's regulated utilities: they've just been forced to fund capacity three auctions in a row, and they need to buy your gear to meet AI load without hitting the price cap again.

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Topics

power-grid-economicsdata-centre-demandcapacity-auctionsregulatory-cost-shiftingai-infrastructure-costs