US manufacturers in the Rust Belt are facing significantly higher electricity costs due to growing energy demand from data centers. This surge in costs could undermine President Donald Trump's 'Made in America' plan to revive US manufacturing.
The increased energy demand is straining the largest power grid operator in the US, PJM Interconnection, which serves a 13-state region. As a result, factory electricity bills are rising faster than those for other business customers or residential customers.
The impact is already being felt by companies such as the Belden Brick Company in Ohio, which has seen its electricity bills soar from $1,600 to $12,000 per month. The Steel Manufacturers Association has also warned that US steel companies are paying tens of millions of dollars in higher power costs per year, with electricity accounting for 20 to 40 percent of total production costs.
