Data centers’ energy demand threatens Trump’s “Made in America” plan
Ars Technica AI · Jeremy Hsu · 2026-07-07
Ars Technica reports that surging AI data center energy demand on the PJM Interconnection grid is driving up electricity costs for US manufacturers, with one Ohio brick maker's monthly bill jumping from $1,600 to $12,000, undermining Trump's manufacturing revival agenda.
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Extraction
Topics: ai-energy-consumptiondata-center-infrastructureus-manufacturingenergy-policy
Claims
- US factory electricity bills are rising faster than those for other business or residential customers in the PJM Interconnection region.
- Belden Brick Company, a 141-year-old Ohio manufacturer, saw its monthly electricity bill rise from $1,600 to $12,000 due to higher capacity charges.
- US steel companies in the Rust Belt are paying tens of millions of dollars per year in higher power costs driven by AI data center demand.
- Electricity accounts for 20 to 40 percent of the total production cost of making steel, making energy price increases acutely damaging.
- AI data center energy growth creates a direct policy conflict between Trump's manufacturing revival goals and his simultaneous support for the AI industry.
Key quotes
Factory electricity bills are generally rising faster than those for other business customers or residential customers, according to a Reuters analysis.
The Steel Manufacturers Association warned that US steel companies concentrated in the Rust Belt region served by PJM Interconnection are paying tens of millions of dollars in higher power costs per year.