PJM capacity auction cleared at $333.44 per megawatt-day. Data centers drove 40 percent of the cost. CRE owners in 13 states face NOI pressure starting June 2027.
PJM is introducing a connect-and-manage framework that prioritizes speed of connection over unconditional reliability. This shift requires large-load users to accept curtailment risk or provide onsite generation to ensure continuous operations.
PJM Interconnection warns of a possible 60 GW power shortfall in the next decade, driven by rapid data center growth and electrification and posing major challenges for planning, siting, and grid economics.
Developers once saw electricity as a simple utility, but in the Mid-Atlantic and Midwest, PJM’s new rules for large-load customers like data centers reveal a new reality: grid access is now a critical project bottleneck.
The hottest signal in the Mid-Atlantic power market right now is a number most real estate owners never see until it shows up in a utility bill: the price of “capacity,” the grid’s insurance policy against blackouts.