13 states agree to cap electricity prices for two years and charge data centers more for grid upgrades to manage AI-driven demand.

Governors from 13 states in the PJM grid, serving 67 million people, are set to sign a White House-backed agreement to cap electricity prices for two years and require new data center operators to pay more for grid upgrades. The move aims to address rising power costs driven by AI-driven demand, with plans to speed up power plant connections and create a separate auction for new generation. While PJM has lowered near-term demand forecasts due to stricter data center vetting and conservative economic assumptions, long-term growth remains strong, with summer peak demand expected to rise 3.6% annually through 2036. The initiative follows political pressure over affordability and a separate bill introduced by Senator Van Hollen to limit consumer costs tied to data center expansion.