There’s a tension running through Trump’s economic agenda. He wants to revive US manufacturing. He also loves the tech companies building AI data centers. Those two goals are colliding on the power grid.
Factory electricity bills are rising faster than everyone else’s. The Belden Brick Company in Ohio — 141 years old — saw its monthly bill jump from $1,600 to $12,000. That’s a capacity charge increase tied to PJM Interconnection, the grid operator serving 13 states across the Rust Belt.
The Steel Manufacturers Association says steel companies in PJM territory are paying tens of millions more per year. Electricity accounts for 20% to 40% of steel production costs. Metallus, an Ohio-based steelmaker, reported a 70% jump in electricity costs since 2024 — an extra $15 million annually.
PJM’s capacity prices went from $28.92 per megawatt-day in 2024 to $329.17 in 2026. That’s a 10x increase in two years. The grid operator forecast that demand will exceed supply by 6.6 gigawatts starting in 2027 — equivalent to six nuclear power plants.
Some manufacturers are raising prices. Others are considering relocation. Steel executives warn of production outages if grids get overwhelmed.
The White House got Big Tech companies to sign a “Ratepayer Protection Pledge” promising to pay for new power infrastructure. It has no enforcement teeth. The administration also pushed PJM to hold a backstop auction for new supply. But 266 gigawatts of generation projects were cancelled in 2025 — 93% of them clean energy. Wind cancellations from the administration’s own policies contributed, along with local opposition in states that also court data centers.
US manufacturing can’t compete if power costs keep climbing. Data centers can’t run without power. Both can’t win on the same strained grid. Something’s got to give.
