Trump administration pushes tech giants to fund $15B power grid expansion

The Trump administration is pressuring PJM Interconnection, the largest electricity grid operator in the U.S., to auction $15 billion worth of new power generation contracts. To finance this expansion, the Trump administration wants technology companies to bid on 15-year contracts, even if they don’t have an immediate need for the capacity.

The proposal aims to address the energy demand from data centers, which is anticipated to nearly triple over the next decade. PJM, which serves 65 million people across 13 states, including the data center hub of northern Virginia, has noticed a peak load growth by 10% in the last decade.

Yet, the grid operator seems resistant to the administration’s pressure. PJM stated the proposal is nonbinding and disclosed that the White House did not invite the grid operator to the event announcing the initiative. “We don’t have a lot to say on this,” a spokesperson mentioned.

In 2025, electricity rates in the PJM region jumped by 10% to 15%. Although the increased demand from artificial intelligence contributed to this rise, the PJM’s independent monitor attributes approximately 60% of the price hike primarily to escalating natural gas costs.

This heavy dependence on fossil fuels is creating tension with technology companies. Utilities are reluctant to invest in expensive natural gas plants, which take years to complete, due to concerns that they could become “stranded assets” if the current AI boom slows down.

Consequently, tech firms are increasingly favoring renewable energy options like solar power and battery storage. Companies can deploy these more affordable alternatives rapidly—in roughly 18 months—allowing them to synchronize energy supply with the construction timelines of new data centers.

PJM said that it is examining the administration’s “statement of principles” and will soon release results from its own long-term planning process.