Trump Targets Data Centers to Fund New Power Plants

A Plan to Overhaul a Major Power Market

The Trump administration and governors from several Northeast states are preparing an unprecedented intervention into the nation's energy markets, aiming to make technology giants pay for a new fleet of power plants.

A "statement of principles" expected Friday will call on PJM Interconnection LLC, the country's largest grid operator, to hold an emergency power auction. This initiative, backed by President Donald Trump's National Energy Dominance Council and the governors of states like Pennsylvania, Ohio, and Virginia, represents a direct response to the massive electricity demand driven by data centers.

Under the proposal, PJM would be urged to conduct a reliability auction offering 15-year contracts for new electricity generation. An unnamed White House official stated that if the plan is implemented, it could generate contracts supporting the construction of approximately $15 billion worth of new power facilities.

Data Center Power Surge Puts Grid Under Pressure

The core issue is that electricity demand in the region managed by PJM, which serves over 67 million people from the Midwest to the Mid-Atlantic, is rapidly outpacing supply. This initiative seeks to resolve the growing tension over how to power the data centers essential for the global artificial intelligence race without raising utility bills for American households.

The administration's plan directly targets the tech companies and "hyperscalers" building these power-hungry facilities, giving them a chance to bid for the long-term contracts that would fund new generation.

Political Tensions Rise Over Electricity Bills

President Trump has consistently argued that tech companies building data centers should finance the power infrastructure required to run them. On Monday, he reiterated this stance in a social media post, insisting that these companies must "pay their own way."

"I never want Americans to pay higher Electricity bills because of Data Centers," Trump said.

This policy push comes as cost-of-living issues feature prominently in the lead-up to the November elections. While the administration has highlighted falling oil and gasoline prices, rising electricity costs are fueling a backlash against the data centers seen as a primary driver of the demand surge. The initiative is a direct attempt to shift the financial burden of grid expansion away from consumers and onto the tech industry.