The AI Compute Race Glossary Capacity auction

Capacity auction

What does “Capacity auction” mean?

Capacity auction

PJM’s yearly auction for capacity, which on a grid means enough megawatts at the moment of peak demand, as against energy over the year. It is the auction through which the datacenters’ cost reached household bills. Chapter 6.

From The AI Compute Race. Read the book

Where the book uses it

  • Chapter 6 — Firm, Around-the-Clock

    Where the electricity comes from: grid queues, transformers, turbines and the firm power a datacenter needs every hour of the year, on calendars the buildout does not control.

Related terms

From the glossary of The AI Compute Race.

How to cite this page

Dryburgh, Lee S. “Capacity auction.” In The AI Compute Race. DRYBURGH. https://dryburgh.com/vol1/glossary/capacity-auction (accessed 2026-11-01).

BibTeX

@misc{dryburgh-capacity-auction-2026,
  author = {Dryburgh, Lee S.},
  title = {{Capacity auction}},
  howpublished = {In \emph{The AI Compute Race}, DRYBURGH},
  year = {2026},
  url = {https://dryburgh.com/vol1/glossary/capacity-auction},
  note = {Accessed 2026-11-01}
}

For a reference manager: RIS · CSL-JSON