economy
January 16, 2026
Trump administration wants tech companies to buy $15B of power plants they may not use
In an attempt to alleviate rising electricity prices, the White House wants grid operator PJM to hold an auction for new generating capacity, and it wants tech companies to bid.
TL;DR
- The Trump administration wants tech companies to fund $15 billion in new power generation for the PJM grid.
- Tech companies would bid on 15-year contracts for new generating capacity, even if they don't need the power.
- Data center electricity demand is expected to increase nearly threefold in the next decade.
- PJM, which serves 13 states and over 65 million people, is reviewing the proposal but appears reluctant.
- PJM spokesman Jeffrey Shields stated they were not invited to a related event and would not attend.
- Recent electricity rate increases in the PJM region are attributed to high fossil fuel prices and increased demand, partly from data centers using power for AI.
- Building new fossil fuel power plants is a lengthy and costly process, and utilities are hesitant due to potential future unprofitability if the AI boom fades.
- Tech companies are increasingly opting for renewables like solar and batteries due to their lower cost, modularity, and faster deployment times.
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