Maryland Electricity Prices Rising Amid Data Center Demand Surge

Electricity prices are expected to climb across the region this summer as the nation’s largest power grid struggles to keep up with growing demand fueled in part by the rapid expansion of data centers, FOX Baltimore reports.

The warning from energy analysts comes just days after Maryland lawmakers passed sweeping energy legislation designed to help offset rising utility costs. While the measure is expected to save ratepayers at least $150 annually, experts say it does not fully address the long-term factors pushing energy bills higher. Additional savings could come from changes in how rates are set, new tariffs targeting high-volume energy users, and incentives aimed at boosting power generation within the state.

RELATED: Maryland House Passes Energy Bill Promising Utility Savings

At the center of the issue is PJM Interconnection, which serves roughly 67 million people across Maryland and a dozen other states. Analysts say the grid is facing a widening gap between increasing electricity demand and a slower rollout of new power supply.

That demand is being driven largely by the growth of data centers, particularly in nearby regions. While Northern Virginia remains the largest hub in the country, development is expanding into parts of Maryland, including Frederick, Prince George’s, and Baltimore counties. Local utilities like Baltimore Gas and Electric and Pepco will ultimately have to manage the impact of rising wholesale energy costs tied to the grid.

Energy experts warn that the timeline for building new infrastructure is not keeping pace with demand. Large-scale data centers can be developed within a few years, but new power plants, particularly gas-fired facilities, can take five to seven years to come online.