- President Donald Trump wants PJM Interconnection to hold an auction in which the tech companies bid on contracts for new electricity generation, a White House official told CNBC.
- The PJM grid serves more than 65 million people across 13 states and Washington, D.C.
- Elecricity prices have exploded in recent years on PJM due in large part to the data centers.
The Trump administration on Friday will push the largest electricity grid in the U.S. to make the big technology companies pay for new power plants.
Electricity prices have exploded in recent years on PJM Interconnection due in large 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.
President Donald Trump wants PJM to hold an emergency auction in which the tech companies would bid on contracts for new electricity generation, a White House official told CNBC.
“Under President Trump’s leadership, the administration is leading a unprecedented bi-partisan effort urging PJM to fix the energy subtraction failures of the past, prevent price increases, and reduce the risk of blackouts,” White House spokeswoman Taylor Rogers said.
Bloomberg first reported the news.
Utility bills are rising in many parts of the U.S. despite Trump’s promise to lower energy prices during his presidential campaign. The issue played a major role in the landslide victories of Democrats Mikie Sherrill and Abigail Spanberger in the New Jersey and Virginia governors’ races.
The price to secure power capacity in PJM has exploded in recent years with $23 billion attributable to data centers, according to watchdog Monitoring Analytics. Those costs are passed down to consumers. This amounts to a “massive wealth transfer,” the watchdog told PJM in a November letter.
PJM was six gigawatts short of its reliability requirement for 2027 in its most recent auction. Six gigawatts is equivalent to six large nuclear plants.
The power shortage makes blackouts more likely, said Abe Silverman, who served as general counsel for the public utility board in New Jersey from 2019 until 2023 under Democrat Gov. Phil Murphy.
“Instead of a blackout happening every one in 10 years, we’re looking at something more often,” the analyst said.
This post was originally published on CNBC Markets
