Data center demand hikes manufacturer power costs
Analysis based on 19 articles · First reported Apr 20, 2026 · Last updated Jul 09, 2026
Rising electricity costs threaten the viability of U.S. manufacturing, potentially leading to higher prices, slower growth, or relocation. Data center growth is driving grid investments but also straining supply, with PJM taking emergency steps to prevent blackouts.
Rising electricity demand from data centers serving artificial intelligence is driving up capacity charges for manufacturers in the PJM Interconnection region, particularly in the Rust Belt. Belden Brick Company saw its monthly capacity charge jump from $1,600 to $12,000, and overall industrial electricity prices rose 31% in United States — Pennsylvania and 26% in United States — Ohio year-over-year as of December 2025. PJM's capacity prices surged 1,038% from 2024 to 2025. Manufacturers like Plaskolite and Tosoh Corporation — Tosoh SMD are considering alternative power sources or shifting production to off-peak hours. Federal and state proposals aimed at managing data center demand may also affect manufacturers. The United States — White House has taken steps to cushion the impact, including a ratepayer protection pledge from tech companies and directives to build new power plants.
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