Under the wave of AI, GPU chips have become hot commodities, but there is an even more easily overlooked cost killer—electricity.

According to the latest data, the capacity auction prices in one of the largest electricity markets in the US, PJM, have been rising sharply in recent years. The clearing prices in recent auctions have approached the high levels of $329-$333/MW-day. Industry insiders also point out that without cap constraints, these prices could surge to around $530/MW.

What does this mean for data center operators? Simply put, it means huge cost pressures. Building data centers is no longer just about stacking GPUs; the continuous rise in electricity prices and capacity fees directly impacts overall operating costs. In the long term, this will influence site selection decisions, deployment schedules, and even investment return models for new data centers.

From another perspective, electricity costs have become an "invisible constraint" for the expansion of the AI industry. While competing for high-quality computing power, data center operators must also start rethinking: where to build more economically? When is the optimal time to deploy? How to survive in an era of tight electricity supply? The answers to these questions are being rewritten time and again by capacity auction prices.