Data Center Electricity Cost by State 2026
By Axis Intelligence Research
Co-author: Aidan Jad | Last updated: October 30, 2026 | License: CC BY 4.0
According to Axis Intelligence Research, one megawatt of continuous data center load cost $633,655 a year in electricity at the 2025 U.S. industrial average of 8.51 cents per kilowatt-hour, and as little as $435,591 in New Mexico or as much as $2,341,767 in Hawaii. In the first eight months of 2026, the national industrial price already stood 6.9% above the same period of 2025, with Ohio up 26.3%. This page ranks all 50 states and the District of Columbia on EIA data and shows what is locked in for 2027.
Quick answer
New Mexico has the cheapest industrial electricity in the EIA’s 2025 data (5.85¢/kWh), followed by Oklahoma, Louisiana, Texas and Tennessee. Rhode Island (21.40¢) is now the most expensive contiguous state, ahead of California (20.96¢). Hawaii, at 31.45¢, costs 5.4 times New Mexico. Seven of the ten largest 2026 price increases are in states served wholly or partly by PJM, the grid operator whose last three capacity auctions cleared between $325.00 and $333.44 per MW-day.
Key findings
- 1 MW costs $633,655 a year. That is the U.S. average at an 85% load factor, per Axis Intelligence Research on EIA 2025 data.
- The spread is 5.4×. New Mexico (5.85¢) to Hawaii (31.45¢); the contiguous spread, New Mexico to Rhode Island, is 3.7×.
- Ohio is the 2026 outlier. Its industrial price rose 26.3% in January–August 2026, moving its Axis index from 98.6 to 112.5.
- Dominion’s GS-5 sets a floor. From January 1, 2027, customers on Schedule GS-5 owe at least $74,653 to $108,465 per contracted MW per year in demand charges alone.
- PJM’s market monitor ties $29.4 billion to data centers. That is 46.2% of capacity charges across four auctions, 2025/2026 to 2028/2029.
What does data center electricity cost by state in 2025?
The table ranks every state and the District of Columbia by the EIA’s 2025 average industrial price, the federal benchmark for what large industrial loads pay per kilowatt-hour. The cost column converts price to dollars for 1 MW of facility load running at an 85% load factor (8,760 hours × 1,000 kW × 0.85). The two index columns use the Data Center Electricity Cost Index (DCECI™), explained in the methodology section: 100 equals the U.S. average, so Ohio’s 98.6 in 2025 means 1.4% below the national price.
| Rank | State | Industrial price 2025 (¢/kWh) | 2024 (¢/kWh) | Change | Annual cost per MW, facility load ($) | DCECI 2025 | Jan–Aug 2026 (¢/kWh) | Change vs Jan–Aug 2025 | DCECI Jan–Aug 2026 | Source |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | New Mexico | 5.85 | 5.43 | +7.7% | 435,591 | 68.7 | 5.19 | -13.8% | 57.1 | EIA Tables 2.10 and 5.6.B |
| 2 | Oklahoma | 6.14 | 5.84 | +5.1% | 457,184 | 72.2 | 6.89 | +13.0% | 75.8 | EIA Tables 2.10 and 5.6.B |
| 3 | Louisiana | 6.18 | 5.61 | +10.2% | 460,163 | 72.6 | 6.58 | +3.9% | 72.4 | EIA Tables 2.10 and 5.6.B |
| 4 | Texas | 6.35 | 6.12 | +3.8% | 472,821 | 74.6 | 6.77 | +7.3% | 74.5 | EIA Tables 2.10 and 5.6.B |
| 5 | Tennessee | 6.59 | 6.21 | +6.1% | 490,691 | 77.4 | 6.84 | +1.3% | 75.2 | EIA Tables 2.10 and 5.6.B |
| 6 | Arkansas | 6.69 | 6.61 | +1.2% | 498,137 | 78.6 | 6.96 | +3.7% | 76.6 | EIA Tables 2.10 and 5.6.B |
| 7 | Kentucky | 6.78 | 6.50 | +4.3% | 504,839 | 79.7 | 7.49 | +9.5% | 82.4 | EIA Tables 2.10 and 5.6.B |
| 8 | Washington | 7.00 | 6.61 | +5.9% | 521,220 | 82.3 | 7.17 | +3.2% | 78.9 | EIA Tables 2.10 and 5.6.B |
| 9 | Montana | 7.03 | 7.59 | -7.4% | 523,454 | 82.6 | 6.99 | -1.5% | 76.9 | EIA Tables 2.10 and 5.6.B |
| 10 | Iowa | 7.15 | 6.80 | +5.1% | 532,389 | 84.0 | 7.66 | +5.4% | 84.3 | EIA Tables 2.10 and 5.6.B |
| 11 | South Carolina | 7.26 | 6.84 | +6.1% | 540,580 | 85.3 | 7.86 | +8.1% | 86.5 | EIA Tables 2.10 and 5.6.B |
| 12 | Mississippi | 7.28 | 6.81 | +6.9% | 542,069 | 85.5 | 7.65 | +5.4% | 84.2 | EIA Tables 2.10 and 5.6.B |
| 13 | North Dakota | 7.59 | 7.25 | +4.7% | 565,151 | 89.2 | 8.18 | +8.1% | 90.0 | EIA Tables 2.10 and 5.6.B |
| 14 | Alabama | 7.73 | 7.25 | +6.6% | 575,576 | 90.8 | 7.96 | +2.6% | 87.6 | EIA Tables 2.10 and 5.6.B |
| 15 | North Carolina | 7.79 | 7.77 | +0.3% | 580,043 | 91.5 | 7.95 | +2.1% | 87.5 | EIA Tables 2.10 and 5.6.B |
| 16 | Georgia | 7.88 | 7.21 | +9.3% | 586,745 | 92.6 | 8.67 | +5.5% | 95.4 | EIA Tables 2.10 and 5.6.B |
| 16 | Idaho | 7.88 | 7.69 | +2.5% | 586,745 | 92.6 | 8.37 | +4.2% | 92.1 | EIA Tables 2.10 and 5.6.B |
| 18 | Kansas | 8.04 | 7.73 | +4.0% | 598,658 | 94.5 | 8.33 | +4.3% | 91.6 | EIA Tables 2.10 and 5.6.B |
| 19 | Arizona | 8.05 | 7.90 | +1.9% | 599,403 | 94.6 | 7.94 | -4.0% | 87.3 | EIA Tables 2.10 and 5.6.B |
| 19 | Nebraska | 8.05 | 7.66 | +5.1% | 599,403 | 94.6 | 8.62 | +4.2% | 94.8 | EIA Tables 2.10 and 5.6.B |
| 21 | Nevada | 8.09 | 8.64 | -6.4% | 602,381 | 95.1 | 8.69 | +7.2% | 95.6 | EIA Tables 2.10 and 5.6.B |
| 22 | West Virginia | 8.11 | 7.81 | +3.8% | 603,871 | 95.3 | 8.26 | +2.0% | 90.9 | EIA Tables 2.10 and 5.6.B |
| 23 | Oregon | 8.20 | 8.05 | +1.9% | 610,572 | 96.4 | 8.38 | +1.8% | 92.2 | EIA Tables 2.10 and 5.6.B |
| 24 | Missouri | 8.25 | 7.87 | +4.8% | 614,295 | 96.9 | 8.78 | +5.5% | 96.6 | EIA Tables 2.10 and 5.6.B |
| 25 | Ohio | 8.39 | 7.10 | +18.2% | 624,719 | 98.6 | 10.23 | +26.3% | 112.5 | EIA Tables 2.10 and 5.6.B |
| 26 | Utah | 8.45 | 7.86 | +7.5% | 629,187 | 99.3 | 8.58 | +2.3% | 94.4 | EIA Tables 2.10 and 5.6.B |
| 27 | Michigan | 8.51 | 8.26 | +3.0% | 633,655 | 100.0 | 9.29 | +8.7% | 102.2 | EIA Tables 2.10 and 5.6.B |
| 28 | South Dakota | 8.65 | 8.28 | +4.5% | 644,079 | 101.6 | 9.45 | +9.4% | 104.0 | EIA Tables 2.10 and 5.6.B |
| 28 | Wyoming | 8.65 | 7.96 | +8.7% | 644,079 | 101.6 | 8.78 | +1.4% | 96.6 | EIA Tables 2.10 and 5.6.B |
| 30 | Indiana | 8.66 | 8.15 | +6.3% | 644,824 | 101.8 | 9.17 | +6.6% | 100.9 | EIA Tables 2.10 and 5.6.B |
| 31 | Florida | 8.91 | 8.50 | +4.8% | 663,439 | 104.7 | 9.20 | +3.8% | 101.2 | EIA Tables 2.10 and 5.6.B |
| 32 | Wisconsin | 8.94 | 8.54 | +4.7% | 665,672 | 105.1 | 9.60 | +6.7% | 105.6 | EIA Tables 2.10 and 5.6.B |
| 33 | Colorado | 9.02 | 8.62 | +4.6% | 671,629 | 106.0 | 9.64 | +7.0% | 106.1 | EIA Tables 2.10 and 5.6.B |
| 34 | Minnesota | 9.31 | 9.15 | +1.7% | 693,223 | 109.4 | 9.78 | +5.6% | 107.6 | EIA Tables 2.10 and 5.6.B |
| 35 | Pennsylvania | 9.34 | 7.87 | +18.7% | 695,456 | 109.8 | 10.82 | +18.8% | 119.0 | EIA Tables 2.10 and 5.6.B |
| 36 | Virginia | 9.49 | 8.99 | +5.6% | 706,625 | 111.5 | 10.07 | +8.2% | 110.8 | EIA Tables 2.10 and 5.6.B |
| 37 | Delaware | 9.62 | 8.49 | +13.3% | 716,305 | 113.0 | 11.56 | +19.8% | 127.2 | EIA Tables 2.10 and 5.6.B |
| 38 | Illinois | 9.63 | 8.83 | +9.1% | 717,050 | 113.2 | 10.42 | +8.7% | 114.6 | EIA Tables 2.10 and 5.6.B |
| 39 | New York | 9.87 | 9.17 | +7.6% | 734,920 | 116.0 | 10.33 | +3.8% | 113.6 | EIA Tables 2.10 and 5.6.B |
| 40 | Vermont | 12.23 | 11.58 | +5.6% | 910,646 | 143.7 | 12.90 | +6.7% | 141.9 | EIA Tables 2.10 and 5.6.B |
| 41 | Maryland | 12.52 | 10.01 | +25.1% | 932,239 | 147.1 | 14.87 | +22.3% | 163.6 | EIA Tables 2.10 and 5.6.B |
| 42 | New Jersey | 13.79 | 11.93 | +15.6% | 1,026,803 | 162.0 | 15.31 | +11.1% | 168.4 | EIA Tables 2.10 and 5.6.B |
| 43 | District of Columbia | 14.82 | 10.80 | +37.2% | 1,103,497 | 174.1 | 20.47 | +44.9% | 225.2 | EIA Tables 2.10 and 5.6.B |
| 44 | Maine | 14.88 | 12.46 | +19.4% | 1,107,965 | 174.9 | 15.62 | +7.0% | 171.8 | EIA Tables 2.10 and 5.6.B |
| 45 | New Hampshire | 16.82 | 16.21 | +3.8% | 1,252,417 | 197.6 | 18.07 | +7.4% | 198.8 | EIA Tables 2.10 and 5.6.B |
| 46 | Connecticut | 18.43 | 17.12 | +7.7% | 1,372,298 | 216.6 | 18.16 | -5.4% | 199.8 | EIA Tables 2.10 and 5.6.B |
| 47 | Massachusetts | 19.04 | 18.19 | +4.7% | 1,417,718 | 223.7 | 19.94 | +3.8% | 219.4 | EIA Tables 2.10 and 5.6.B |
| 48 | Alaska | 19.86 | 19.31 | +2.8% | 1,478,776 | 233.4 | 23.90 | +19.9% | 262.9 | EIA Tables 2.10 and 5.6.B |
| 49 | California | 20.96 | 21.53 | -2.6% | 1,560,682 | 246.3 | 21.11 | +2.3% | 232.2 | EIA Tables 2.10 and 5.6.B |
| 50 | Rhode Island | 21.40 | 19.70 | +8.6% | 1,593,444 | 251.5 | 21.57 | +0.7% | 237.3 | EIA Tables 2.10 and 5.6.B |
| 51 | Hawaii | 31.45 | 34.13 | -7.9% | 2,341,767 | 369.6 | 37.83 | +20.3% | 416.2 | EIA Tables 2.10 and 5.6.B |
Notes: Rank 1 is cheapest. 2025 data are from the EIA’s Electric Power Annual, Table 2.10. January–August 2026 data are preliminary values from the EIA’s Electric Power Monthly, Table 5.6.B; the DCECI for that period divides each state by the U.S. average for the same months (9.09¢).
Which states are cheapest for data center electricity?
New Mexico (5.85¢), Oklahoma (6.14¢), Louisiana (6.18¢), Texas (6.35¢) and Tennessee (6.59¢) hold the five lowest prices, and they were the same five states in 2024, in a slightly different order (Louisiana ranked ahead of Oklahoma). That stability matters for site selection: the cheap tier is not rotating from year to year. The picture shifts inside 2026. Oklahoma’s January–August price is 13.0% above the same months of 2025, while New Mexico’s is 13.8% lower, so the 2025 ranking is already moving.
Which states are most expensive?
Hawaii (31.45¢, $2,341,767 per MW), Rhode Island (21.40¢, $1,593,444), California (20.96¢, $1,560,682), Alaska (19.86¢) and Massachusetts (19.04¢) are the five highest. Rhode Island passing California to become the most expensive contiguous state is a 2025 change: in 2024 California was higher at 21.53¢ against Rhode Island’s 19.70¢. At 100 MW of facility load, the gap between Texas and California is $108.8 million a year.
How much does a 100 MW data center pay for electricity in each state?
A 100 MW campus is the scale at which a siting decision becomes a balance-sheet decision. The table converts each state’s 2025 industrial price to annual cost for 100 MW of facility load, and shows the same load counted as IT load at Google’s 2025 fleet PUE of 1.09.
| State | Industrial price 2025 (¢/kWh) | 100 MW of facility load ($ million a year) | 100 MW of IT load at PUE 1.09 ($ million a year) | Gap vs Texas, facility load ($ million) | Source |
|---|---|---|---|---|---|
| New Mexico | 5.85 | 43.6 | 47.5 | -3.7 | EIA Table 2.10; Axis calculation |
| Texas | 6.35 | 47.3 | 51.5 | +0.0 | EIA Table 2.10; Axis calculation |
| Washington | 7.00 | 52.1 | 56.8 | +4.8 | EIA Table 2.10; Axis calculation |
| Iowa | 7.15 | 53.2 | 58.0 | +6.0 | EIA Table 2.10; Axis calculation |
| Georgia | 7.88 | 58.7 | 64.0 | +11.4 | EIA Table 2.10; Axis calculation |
| Arizona | 8.05 | 59.9 | 65.3 | +12.7 | EIA Table 2.10; Axis calculation |
| Oregon | 8.20 | 61.1 | 66.6 | +13.8 | EIA Table 2.10; Axis calculation |
| Ohio | 8.39 | 62.5 | 68.1 | +15.2 | EIA Table 2.10; Axis calculation |
| Pennsylvania | 9.34 | 69.5 | 75.8 | +22.3 | EIA Table 2.10; Axis calculation |
| Virginia | 9.49 | 70.7 | 77.0 | +23.4 | EIA Table 2.10; Axis calculation |
| Illinois | 9.63 | 71.7 | 78.2 | +24.4 | EIA Table 2.10; Axis calculation |
| Maryland | 12.52 | 93.2 | 101.6 | +45.9 | EIA Table 2.10; Axis calculation |
| California | 20.96 | 156.1 | 170.1 | +108.8 | EIA Table 2.10; Axis calculation |
| Hawaii | 31.45 | 234.2 | 255.3 | +186.9 | EIA Table 2.10; Axis calculation |
Facility load uses an 85% load factor. IT load multiplies the facility figure by 1.09, the 2025 fleet PUE reported on Google’s data center efficiency page. Both are Axis Intelligence Research calculations on EIA industrial prices; neither includes demand charges, capacity charges or riders.
Virginia sits $23.4 million a year above Texas at 100 MW of facility load. That premium is the figure to set against land, construction, network and interconnection-timing differences between the two markets. For more on how these rates reach households in the same states, see our analysis of data centers and electricity bills by state.
Which states’ industrial electricity rates are rising fastest into 2027?
The EIA’s monthly data runs through August 2026, so it shows where prices are heading before the annual figures do. Ten states had the largest percentage increases between January–August 2025 and January–August 2026. Seven of them (the District of Columbia, Ohio, Maryland, Delaware, Pennsylvania, New Jersey and Kentucky) are served wholly or partly by PJM, which covers all or parts of 13 states and the District of Columbia according to PJM’s territory page.
| State | Jan–Aug 2025 (¢/kWh) | Jan–Aug 2026 (¢/kWh) | Change | Extra cost for 100 MW if the gap held for a year ($ million) | Served in whole or part by PJM | Source |
|---|---|---|---|---|---|---|
| District of Columbia | 14.13 | 20.47 | +44.9% | 47.2 | Yes | EIA Table 5.6.B; PJM Territory Served |
| Ohio | 8.10 | 10.23 | +26.3% | 15.9 | Yes | EIA Table 5.6.B; PJM Territory Served |
| Maryland | 12.16 | 14.87 | +22.3% | 20.2 | Yes | EIA Table 5.6.B; PJM Territory Served |
| Hawaii | 31.45 | 37.83 | +20.3% | 47.5 | No | EIA Table 5.6.B; PJM Territory Served |
| Alaska | 19.93 | 23.90 | +19.9% | 29.6 | No | EIA Table 5.6.B; PJM Territory Served |
| Delaware | 9.65 | 11.56 | +19.8% | 14.2 | Yes | EIA Table 5.6.B; PJM Territory Served |
| Pennsylvania | 9.11 | 10.82 | +18.8% | 12.7 | Yes | EIA Table 5.6.B; PJM Territory Served |
| Oklahoma | 6.10 | 6.89 | +13.0% | 5.9 | No | EIA Table 5.6.B; PJM Territory Served |
| New Jersey | 13.78 | 15.31 | +11.1% | 11.4 | Yes | EIA Table 5.6.B; PJM Territory Served |
| Kentucky | 6.84 | 7.49 | +9.5% | 4.8 | Yes | EIA Table 5.6.B; PJM Territory Served |
The extra-cost column is an Axis Intelligence Research calculation: (2026 price − 2025 price) × 8,760 hours × 1,000 kW × 0.85 × 100 MW. It illustrates scale and is not a forecast. January–August 2026 values are preliminary.
The Mid-Atlantic and Ohio Valley pattern is the finding to carry into 2027 planning. Pennsylvania’s annual price rose 18.7% in 2025 (7.87¢ to 9.34¢) and Maryland’s 25.1% (10.01¢ to 12.52¢), and both kept climbing in 2026. The EIA data shows these increases; it does not assign causes. The PJM section below sets out what the market monitor attributes to data center load.
How does PUE change a data center’s electricity bill?
Power usage effectiveness (PUE) is total facility energy divided by IT energy. A PUE of 1.50 means each kilowatt-hour reaching servers carries another 0.50 kWh of cooling and power-conversion overhead. The table prices 1 MW of IT load at four PUE levels in four reference markets.
| PUE | U.S. average | Texas | Virginia | California | Source |
|---|---|---|---|---|---|
| 1.09 | 690,684 | 515,375 | 770,222 | 1,701,143 | EIA Table 2.10; Axis calculation |
| 1.25 | 792,068 | 591,026 | 883,282 | 1,950,852 | EIA Table 2.10; Axis calculation |
| 1.50 | 950,482 | 709,232 | 1,059,938 | 2,341,022 | EIA Table 2.10; Axis calculation |
| 2.00 | 1,267,309 | 945,642 | 1,413,251 | 3,121,363 | EIA Table 2.10; Axis calculation |
Axis Intelligence Research calculation: annual cost per MW of facility load × PUE, using EIA 2025 industrial prices. The 1.09 row is Google’s 2025 fleet PUE; the other rows are scenarios.
The state choice and the PUE choice are of similar size inside the cheap tier. In Texas, raising PUE from 1.09 to 1.50 adds $193,857 per MW of IT load. Moving a 1.09-PUE load from Texas to Virginia adds $254,847. Against California the location effect dominates: $1,185,768 more per MW than Texas at identical PUE. Each 0.10 of PUE adds $63,365 per MW of IT load at the U.S. average, $47,282 in Texas and $156,068 in California. For capital cost per megawatt, which is a different question, see our guide to AI data center cost per MW.
What does Dominion’s GS-5 tariff cost from January 2027?
Virginia is the market where tariff design now matters as much as the cents-per-kilowatt-hour average. The State Corporation Commission’s final order in Dominion’s biennial review (Case No. PUR-2025-00058, issued November 25, 2025) created rate class GS-5 for customers of 25 MW or more with a load factor of 75% or more. Rate Schedule GS-5 is effective January 1, 2027. The contract and collateral provisions apply to customers taking initial service and signing an electric service agreement on or after that date, and to capacity increases signed after it, per the final order (a copy hosted by a news outlet). The Commission approved $565.7 million in 2026 and $209.9 million in 2027 in base-rate increases, $775.6 million in total against $822 million and $345 million requested, per its press release.
| GS-5 term | What the tariff says |
|---|---|
| Eligibility | Contracted or measured demand of 25 MW or more (in at least three of the last 12 billing months) and a measured or expected load factor of 75% or more |
| Initial contract term | 14 years, with a ramp of at most 4 years and at least 20% per year |
| Minimum demand | 85% (distribution and transmission) and 60% (generation) of the kVA capacity of the facilities built to serve the customer’s projected load |
| Collateral | $1.5 million per MVA of contracted capacity in the accepted tariff ($1.5 million per MW in the final order); 70% exemption for customers rated at least BBB- (S&P) and Baa3 (Moody’s), backed by a qualifying parental guaranty, or holding liquidity above 10 times the requirement; 1/14 released each year |
| Exit | A customer that stops service during the 14-year term pays an exit fee covering the remaining minimum charges |
| Demand charges, $/kW-month | Distribution 3.148 (billed only where delivery is below 69 kV); transmission 2.371 (primary) or 2.310 (transmission voltage); on-peak generation 7.246 (primary) or 7.096 (transmission voltage); PJM purchased capacity expense 1.397 (primary) or 1.372 (transmission voltage) |
Source: Dominion Energy Virginia, Schedule GS-5 and Terms and Conditions Section XXVII, tariff sheets accepted for filing by the State Corporation Commission on October 14, 2026 (Case No. PUR-2025-00058, Document Control Center no. 261030057). Rates shown are for primary and transmission voltage; secondary-voltage rates are higher.
Two provisions matter beyond the rates. The contract, minimum-demand and collateral rules in Section XXVII cover every Dominion customer of 25 MW or more from January 1, 2027, not only those on GS-5. And the one-time opt-out from GS-5 offered to large employers is limited to manufacturing, industrial and warehousing workforces “other than data storage”: data centers cannot use it.
Axis Intelligence Research computed what the minimum-demand clauses lock in. At transmission voltage: (2.310 × 0.85 + 7.096 × 0.60) × 1,000 kW × 12 months = $74,653 per contracted MW per year. At primary voltage: (3.148 × 0.85 + 2.371 × 0.85 + 7.246 × 0.60) × 1,000 × 12 = $108,465. Those floors are equivalent to roughly 1.0¢ and 1.5¢ per kilowatt-hour at an 85% load factor, owed whether or not the load shows up. They exclude energy charges, reactive-demand charges, the customer charge and riders. The 60% floor applies to on-peak generation demand only, not to the PJM purchased-capacity line. Because the tariff sets minimums on kVA of facility capacity, the calculation treats 1 MVA as 1,000 kW. For a 100 MVA customer, collateral is $150 million, or $45 million after the 70% reduction.
For projects planning around that tariff, the practical reading is that GS-5 converts a power forecast into a take-or-pay obligation. A ramp that slips costs money in a way a state-average rate never shows. See our data center electricity demand tracker for how interconnection requests compare with delivered load.
How much do PJM capacity prices add to a data center’s power cost?
PJM’s capacity market, the Reliability Pricing Model, procures capacity in advance for delivery years running June 1 to May 31, and its clearing price flows into retail rates across the region. The results of the base residual auctions are posted on PJM’s capacity market page.
| Delivery year | Clearing price ($/MW-day) | Converted to $/MW-year (×365) |
|---|---|---|
| 2024/2025 | 28.92 | 10,556 |
| 2025/2026 | 269.92 | 98,521 |
| 2026/2027 | 329.17 | 120,147 |
| 2027/2028 | 333.44 | 121,706 |
| 2028/2029 | 325.00 (at the price cap) | 118,625 |
Source: PJM base residual auction results. The $/MW-year column is an Axis Intelligence Research conversion of a capacity obligation, not of metered load.
The price from 2024/2025 to 2025/2026 rose 833%, and 2026/2027 is a further 21.9% above 2025/2026. In the 2028/2029 auction, PJM’s results report shows 138,317.8 MW cleared at $16.4 billion (cleared quantity times price, which PJM notes is not the total cost to load), a 14.4% installed reserve margin against a 20.0% target, and a shortfall of 6,831.3 MW against the reliability requirement. See PJM’s press release on the auction.
PJM’s independent market monitor, Monitoring Analytics, attributes a large share to data center load. In its July 2026 report to the Members Committee, data center load accounts for $6.3 billion, or 38.2%, of 2028/2029 capacity charges, and $29.4 billion, or 46.2%, across the four auctions from 2025/2026 to 2028/2029. It also estimates data center load added $11.11 per MWh, or 9.7%, to wholesale cost in the first half of 2026. For 2025/2026 alone the monitor’s June 2025 report found that data center load by itself increased 2025/2026 auction revenues by $9,332,103,858, or 174.3%, and wrote that data center load growth is the primary reason for recent and expected capacity market conditions. Our data center moratorium tracker follows how states are responding.
How much electricity do U.S. data centers use?
The U.S. Department of Energy, summarizing a Lawrence Berkeley National Laboratory report, put 2023 data center consumption at 176 TWh, or 4.4% of U.S. electricity, and projected 6.7% to 12% by 2028 in its announcement of the report. A projected 6.7% to 12% share is the demand-side reason prices in load-growth regions are moving. For consumption by company and country, see AI data center energy consumption statistics and our wider AI data center statistics.
What should operators expect for data center electricity in 2027?
Three dated facts shape 2027. Dominion’s GS-5 takes effect on January 1, 2027. PJM’s 2027/2028 capacity price of $333.44 per MW-day applies from June 1, 2027, and 2028/2029 follows at $325.00. And national industrial prices in January–August 2026 were already 9.09¢, against 8.50¢ a year earlier.
Aidan Jad, Axis Intelligence Research, on the 2027 picture: The quoted state average understates the risk in PJM. I would stop underwriting Ohio, Pennsylvania and Maryland sites on the 2025 industrial price: January–August 2026 prices are already 18.8% to 26.3% above the same months of 2025 in those three states, and the price those sites will pay from 2027 depends on capacity charges and contract terms that the EIA average blends away. Texas, Oklahoma, Louisiana and New Mexico remain the lowest-price tier, but a low rate does not substitute for a grid connection. In my view the better 2027 question is not which state is cheapest, but which tariff you can survive with a delayed ramp.
For the projects behind these load numbers, follow the AI data center tracker and our data center trends analysis.
How does Axis calculate the Data Center Electricity Cost Index (DCECI™)?
The DCECI is Axis Intelligence Research’s index of a state’s industrial electricity price relative to the U.S. average:
DCECI = state average industrial price ÷ U.S. average industrial price × 100
A score of 100 equals the national average; 112.5 means 12.5% above it. Because it is a ratio of prices, it does not depend on PUE or load factor, so the ranking is the same whichever efficiency assumption you hold. Annual 2025 scores use EIA Table 2.10. The January–August 2026 scores use Table 5.6.B for each state and for the U.S. average of the same months.
The dollar figures on this page rest on three stated assumptions: 8,760 hours a year, an 85% load factor (an Axis assumption), and, where indicated, a PUE of 1.09 (Google’s 2025 fleet PUE). Dollar figures are an electricity-energy proxy: they exclude demand charges, capacity charges, taxes and riders unless a table says otherwise. Alaska and Hawaii are ranked with the other states. On this update, Axis moved the dollar figures to 2025 EIA prices and to a facility-load basis, with PUE shown as a separate scenario. Annual data are final as published by the EIA; January–August 2026 values are preliminary and will be revised.
Frequently asked questions
What is the cheapest state for data center electricity in 2025?
New Mexico, at an average industrial price of 5.85 cents per kilowatt-hour in the EIA’s 2025 data, or $435,591 a year for 1 MW of facility load at an 85% load factor. Oklahoma (6.14¢), Louisiana (6.18¢), Texas (6.35¢) and Tennessee (6.59¢) complete the five cheapest. The same five states held the bottom five ranks in 2024 and 2025. Price is only one input: a cheap rate does not guarantee interconnection capacity or a short queue.
How much does 1 MW of data center load cost in electricity per year?
At the 2025 U.S. industrial average of 8.51¢/kWh, 1 MW of facility load running at an 85% load factor costs $633,655 a year. Counted per megawatt of IT load at Google’s fleet PUE of 1.09, the figure is $690,684. State figures range from $435,591 in New Mexico to $2,341,767 in Hawaii. The 85% load factor is an Axis assumption, stated so you can replace it with your own.
Does PUE matter more than choosing the right state?
Between Texas and Virginia, location matters more at best-in-class efficiency. Raising PUE from 1.09 to 1.50 adds $193,857 per MW of IT load in Texas. Moving the same 1.09-PUE load from Texas to Virginia adds $254,847. Against California, the state effect is far larger: $1,185,768 more per MW than Texas at identical PUE. Efficiency and siting compound, and the tables above let you test both.
Why did Ohio’s industrial electricity price rise so fast in 2026?
The EIA data shows the move, not the cause: Ohio’s industrial price rose 18.2% in 2025 (7.10¢ to 8.39¢) and 26.3% in January–August 2026 against the same months of 2025. Ohio is served by PJM, where capacity prices rose from $28.92 to $329.17 per MW-day between the 2024/2025 and 2026/2027 delivery years. PJM’s independent market monitor attributes a large share of capacity costs to data center load. How much of Ohio’s retail increase flows from that is a question for the state’s rate cases.
What does Dominion’s GS-5 tariff require from January 2027?
Customers of 25 MW or more with a load factor of 75% or more in Dominion’s Virginia territory fall into the GS-5 class from January 1, 2027. New customers signing from that date take a 14-year contract with minimum billing at 85% of contracted distribution and transmission demand and 60% of generation demand, and post collateral of $1.5 million per MVA of contracted capacity ($1.5 million per MW in the final order), with a 70% exemption for strong credit. Axis calculates demand-charge floors of $74,653 (transmission voltage) to $108,465 (primary voltage) per contracted MW per year before energy charges.
How much have PJM capacity auctions added, and how much traces to data centers?
PJM’s base residual auction price went from $28.92 per MW-day for 2024/2025 to $329.17 for 2026/2027, $333.44 for 2027/2028 and $325.00 for 2028/2029. PJM’s independent market monitor estimates data center load accounts for $6.3 billion, or 38.2%, of the $16.4 billion in 2028/2029 capacity charges, and $29.4 billion, or 46.2%, across the four auctions from 2025/2026 to 2028/2029.
Is the EIA industrial rate what a hyperscaler actually pays?
No. The EIA industrial average is the public benchmark, not a contract price. Large operators negotiate special contracts, buy through retail choice, or sign power purchase agreements, and tariffs such as GS-5 add demand and capacity charges that the average cents-per-kilowatt-hour figure blends together. Use the state price to rank locations and the utility tariff to price a specific site.
What will data center electricity cost in 2027?
Axis does not publish a 2027 price forecast, because no primary source supports one. What is dated and known: Dominion’s GS-5 tariff takes effect on January 1, 2027, PJM’s 2027/2028 capacity price of $333.44 per MW-day applies from June 1, 2027, and January–August 2026 industrial prices already run 6.9% above the same months of 2025 nationally. The next EIA data release is scheduled for November 24, 2026.
About this dataset
All figures on this page are in the open fact table data-center-electricity-cost-by-state.csv, licensed CC BY 4.0, with one row per state, metric and period and columns for source, document, URL, retrieval date and whether the value was calculated by Axis. Cite as:
- APA: Jad, A., & Axis Intelligence Research. (2026). Data center electricity cost by state: 2025 EIA rates and the 2027 outlook. Axis Intelligence. https://axis-intelligence.com/data-center-electricity-cost-by-state/
- MLA: Jad, Aidan, and Axis Intelligence Research. “Data Center Electricity Cost by State: 2025 EIA Rates and the 2027 Outlook.” Axis Intelligence, 30 Oct. 2026, axis-intelligence.com/data-center-electricity-cost-by-state/.
- Chicago: Jad, Aidan, and Axis Intelligence Research. “Data Center Electricity Cost by State: 2025 EIA Rates and the 2027 Outlook.” Axis Intelligence, October 30, 2026. https://axis-intelligence.com/data-center-electricity-cost-by-state/.
Sources: U.S. Energy Information Administration, Electric Power Annual 2025, Tables 2.10 and 2.4; EIA Electric Power Monthly, October 2026, Table 5.6.B; PJM Interconnection; Monitoring Analytics (PJM independent market monitor); U.S. Department of Energy; Virginia State Corporation Commission; Google.
Correction, October 30, 2026. An earlier version of this page stated that PJM’s 2026/2027 capacity auction cleared at $296 per MW-day (+10%); the correct price is $329.17. It measured the 833% increase against $34.13 instead of $28.92, estimated a Google-operated site in Iowa at about $580,000 per MW instead of about $551,900 (2024 rate, PUE 1.09), and gave the 2024 U.S. industrial price increase as 1.2% instead of 1.1%. The page has been rebuilt on the EIA’s 2025 data.