In Dover, Ohio, a 141-year-old brick company called Belden Brick recently opened its monthly electricity bill and found a number that had changed almost beyond recognition: $12,000, up from $1,600. No new kilowatts had been added, no extra shifts run. What had changed was the capacity charge levied across the thirteen-state grid region managed by PJM Interconnection — the largest power grid operator in the United States — where surging demand from artificial intelligence data centres has pushed wholesale electricity prices to levels not seen in years. The numbers are stark.
PJM's capacity prices — the fees paid to power generators to ensure supply meets projected demand — climbed from $28. 92 per megawatt-day in 2024 to $329. 17 per megawatt-day in 2026, an increase of more than 1,000 percent in two years. For heavy industry, whose profit margins are already thin, that trajectory is not merely uncomfortable; it is potentially fatal.
The Steel Manufacturers Association has warned that Rust Belt steelmakers are absorbing tens of millions of dollars in additional annual energy costs. Ohio-based steelmaker Metallus reported that its electricity bill has risen by 70 percent since 2024, translating into $15 million in extra expenditure every year. Since electricity accounts for between 20 and 40 percent of steel production costs, the squeeze is structural, not incidental. The deeper irony is political.
President Donald Trump has championed both the AI data centre boom and a "Made in America" manufacturing revival, yet the two ambitions are now pulling directly against each other on the same grid. Data centres do generate demand for steel — roughly one million tons per year for construction alone — but that benefit may be outweighed by the energy costs they impose on the very mills producing that steel. What this tension reveals is something broader than one president's contradictory priorities: the electrical grid, built for an industrial age, was never designed to host two energy-hungry revolutions at once, and nobody yet knows who will be asked to pay for the upgrade.