AI Data Centers' Surging Energy Demand Threatens Manufacturing Competitiveness

AI Data Centers' Energy Demand Threatens Manufacturing

In summer 2026, a stark contradiction emerged: AI data centers' massive electricity demand is directly threatening American manufacturing competitiveness. Belden Brick's energy costs skyrocketed from $1,600 to $12,000 per megawatt-day. Metallus reports a 70% increase in electricity costs.

The PJM Price Shock

PJM Interconnection saw capacity prices jump from $28 to $329 per megawatt-day — a nearly 12-fold increase in two years. The US Department of Energy estimates data center electricity consumption could triple by 2028.

Global Implications for Georgia

Georgia's hydroelectric resources could support data center development, but must balance energy exports with domestic needs. The country that solves the AI-energy equation will have a significant competitive advantage.