Electricity costs in PJM rose 56 percent in 2025
The burst of current and planned data center development in mid-Atlantic and Great Lakes states led to a 56 percent increase in overall wholesale electricity prices within the PJM operational territory, the region's market monitor reported last week.
PJM, is the electricity grid operator responsible for managing power distribution in 13 Mid-Atlantic and Midwestern states which include all of PA, OH, Virginia, West Virginia, NJ, MD, DE and parts of NC, KY, MI, IN, IL plus the District of Columbia,
Energy costs, which accounted for 60 percent of total costs in 2025, were up 51 percent year over year. Capacity costs -which are fees paid to generators to ensure power is available during peak demand periods - increased the most over that period — 262 percent — and accounted for about 16 percent of total costs last year. In 2024 capacity costs only accounted for 6.5 percent of wholesale energy prices. Transmission costs were up 4.5 percent and accounted for 22 percent of total costs in 2025.
The dramatic rise in capacity costs indicates that those operating the grid anticipate that there may be a shortage in electricity over the coming years. PJM's last two base capacity auctions show a growing shortfall compared to its reserve margin targets. The gap was about 210 MW in the 2026/2027 auction, rising to about 6,520 MW in the 2027/2028 auction
Industry experts project that prices within the region will continue to rise over the coming years and that the reliability of the grid will likely suffer.
EleUS is now constructing more data center space than offices
The U.S. is officially spending more money building data centers than office spaces, according to Bloomberg. A recent boom in data center development paired with a decrease in office construction nationwide, led to this historic shift.
According to the U.S. Census Bureau, data center construction spending hit $3.6 billion at the end of 2025, compared with office construction spending, which dropped to $3.5 billion.
Since the COVID-19 pandemic, businesses have struggled to fill offices, resulting in closures and slower construction rates. Remote and AI work have taken over the workforce, lending a hand to the decrease in office necessity. According to new data from CommercialCafe, a property management software, 17.6 percent of offices nationwide were empty as of February.
Construction costs are just a small part of the total recent investment in data centers. Data center spending in 2025 experienced a massive boom driven by AI demand, with U.S. spending projected to exceed $52 billion annually, marking an over 30 percent increase from 2024.
Democratic House bill aims to overturn Trump electricity policies
Democratic Reps. Sean Casten of Illinois and Mike Levin from California — and 120 other Democratic cosponsors — introduced a clean electricity bill last week that seeks to undo key Trump administration priorities
If passed, the bill would support renewable energy by restoring clean energy tax credits that were eliminated by the One Big Beautiful Bill Act, a major tax and spending bill signed into law in July, as well as reinstating clean energy-related grants that were canceled by the Department of Energy, Environmental Protection Agency and Department of Transportation during the Trump administration.
While the bill is unlikely to pass the Republican-controlled Congress, it could lay the groundwork for future legislation if the House and/or Senate flip to the Democrats in November.
Lego and Solar come to Virginia
The Lego Group announced it is installing two solar projects at its manufacturing facility in Virginia. A 22-MW ground-mount array will be installed on 80 acres of the site in Chesterfield County, and a separate 6.11-MW system is being installed on its rooftop.
Currently under construction, the new site will be LEGO's first manufacturing facility in the U.S., spanning 340 acres and containing 13 buildings including office spaces, molding and packing buildings, an energy center, and an automated warehouse. LEGO announced its plans for the facility in 2022, noting at the time that the factory would be designed to operate as a carbon-neutral facility, with 100 percent of energy needs matched by renewable energy, and with design features to minimize energy consumption and use of non-renewable resources.
Lego is spending $1.5 billion on the factory and regional distribution center. The 13-building complex will support 1,700 positions, and production of the first U.S. Lego blocks is expected to begin in 2027.
The aim is to secure LEED Platinum certification for the site once completed.