Data centers drove $6.3B in PJM capacity auction costs: market monitor

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Dive Brief:

Data centers are responsible for $6.3 billion, or 38%, of the $16.4 billion in charges from the PJM Interconnection’s just-held capacity auction, Joseph Bowring, president of Monitoring Analytics, said in an email to Utility Dive. Monitoring Analytics is the grid operator’s independent market monitor.

In PJM’s last four base capacity auctions, data center-driven capacity charges totaled $29.4 billion — 46% of the $63.6 billion in total capacity charges in that period, Bowring said. Monitoring Analytics plans to publish its analysis of the most recent auction in a few weeks, he said.

PJM isn’t fully grappling with the ramifications of data center development, according to Bowring. “PJM is continuing to act like it’s business as usual,” he said in an interview on Friday. “You have to open your eyes and recognize that it is really a paradigm shift, and failing to do that imposes costs on other customers.”