Rust Belt manufacturers are getting hammered by soaring electricity bills, thanks to the AI data center boom. A Reuters analysis reveals that factory power costs are rising faster than for other customers, with one Ohio brick maker seeing bills jump from $1,600 to $12,000 monthly. The culprit? PJM Interconnection, the grid operator for 13 states, has hiked capacity prices from $28.92 per megawatt-day in 2024 to $329.17 in 2026 due to data center demand. Steelmakers are hit especially hard—electricity makes up 20-40% of production costs, and Ohio’s Metallus reports a 70% cost spike since 2024. While data centers need about 1 million tons of steel yearly, their energy thirst is eroding profits for the very industries Trump’s ‘Made in America’ plan aims to revive. Why it matters: This tension between AI growth and manufacturing revival exposes a critical policy blind spot—subsidizing tech without securing affordable energy for traditional industry could undermine both agendas.
AI data centers spike electricity costs for US manufacturers
Rust Belt manufacturers are getting hammered by soaring electricity bills, thanks to the AI data center boom. A Reuters analysis reveals that factory power costs are rising faster than for other customers, with one Ohio…
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