Growing energy demand from data centers is straining PJM Interconnection, the largest U.S. power grid, causing significantly higher electricity costs for manufacturers in Rust Belt states.
This has squeezed profit margins for steelmakers and brick factories, threatening President Donald Trump's initiative to revive domestic manufacturing. For instance, Belden Brick Company in Ohio saw its monthly electric bill jump from $1,600 to $12,000 due to higher capacity charges.
The Steel Manufacturers Association reports that steel companies in the region are paying tens of millions more per year, with electricity representing 20 to 40 percent of production costs, while Trump has simultaneously championed the tech companies fueling the AI data center boom.
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