Who Actually Pays for the AI Data Center Boom?

Part 1 of 3 in the series Who Pays for the AI Grid.

Who actually pays for the AI data center boom? Probably not who you think.

PJM's capacity market just hit a wall. FERC only partly approved a 6.8 GW backstop procurement capped at $555/MW-day, and the auction is now delayed indefinitely. One Virginia co-op alone faced roughly $2B in potential collateral.

Here's the twist. Capacity costs are spread across the whole PJM footprint. The tax base stays local.

• Host states collect property and equipment tax revenue and are moving to large-load tariffs that make data centers carry more of their own cost.

• Ratepayers in states with few data centers pay higher regional capacity prices and get none of the offset.

Strategic finance takeaways

• Power is moving from an opex line to a balance sheet line for developers

• Collateral carry and interconnection deposits belong in every pro forma

• Smaller developers without investment grade tenants feel it next

Bottom line: In PJM, the AI buildout quietly moves money from states that don't host data centers to states that do.

Who should carry the cost of new large loads: the grid, the ratepayer, or the developer?

Background: Utility Dive

Originally posted on LinkedIn on October 4, 2026. Join the discussion on LinkedIn.