Trump Wants Tech Companies To Foot the Bill For New Power Plants

The Trump administration urged the largest electricity grid in the U.S. to make big tech companies pay for new power plants to support the surging electricity demand from AI and data centers. CNBC reports: Electricity prices have exploded in recent years on PJM Interconnection due in part to the data centers that tech companies are building to train and power artificial intelligence. The PJM grid serves more than 65 million people across 13 states and Washington, D.C. Its service area includes northern Virginia, the largest data center market in the world. The Trump administration and several states signed a pact that calls for tech companies to pay for new power plants built in PJM. Leading tech companies have agreed to fund $15 billion of new generation for the grid, according to an administration statement. The Trump administration and the states urged PJM to hold an emergency capacity auction to procure this power, according to the Department of Energy. PJM should also cap the amount that existing power plants can charge in the grid's capacity market to protect ratepayers, according to the administration. "We have to get out from underneath this bureaucratic system that we have in the regional grid operators and we've got to allow markets to work," said Interior Secretary Doug Burgum at the White House. "One of the ways markets can work is to have the hyperscalers actually rapidly building power."

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