PJM power grid auction hits price limit, falls short of reliability g…

PJM's capacity auction hit its temporary price cap of $325/MWday for the second consecutive year, falling short of reliability requirements as data centre demand outpaces power supply across the 13-state Mid-Atlantic and Midwest grid. Capacity prices have surged over 1,000% since 2024, raising utility bills for one in five Americans, whilst the grid now carries increased blackout risk during peak demand. If you're building data centres or energy-intensive compute in the Mid-Atlantic or Midwest, the grid operator just signalled it cannot keep pace with demand and is rationing supply through price caps rather than building capacity. You now have 18 months to secure direct power contracts or relocate before 2028, when the current price ceiling expires and blackout risk becomes real.