According to the PJM Independent Market Monitor’s Q1 2026 State of the Market Report, published May 15, 2026, wholesale power prices rose from $77.78/MWh in Q1 2025 to $136.53/MWh in Q1 2026, a 75.5% increase.
The report identifies data center load growth as the primary reason for recent and expected capacity market conditions, including total forecast load growth, the tight supply-demand balance and high prices. PJM, the largest U.S. grid market, has seen explosive load growth in Northern Virginia and Ohio.
Why it matters for Green Renewable Energy: AI-driven price increases raise the value of clean firm renewable capacity such as geothermal and long-duration storage, while risking a cost-of-living backlash if households subsidize data-center interconnection.