Trump administration wants tech companies to buy $15B of power plants they may not use

The Trump administration is urging the PJM Interconnection, the largest U.S. electricity grid operator covering 13 states in the Mid-Atlantic and Midwest, to hold an auction for $15 billion worth of new power generation capacity through 15-year contracts. The administration wants tech companies, particularly data center operators, to bid on these contracts even if they do not ultimately require the power, anticipating increased electricity demand driven by data centers and AI growth. However, PJM appears reluctant to embrace this directive, with its spokesman offering minimal comment. The region has seen electricity rates rise by 10-15% for 2025, partly due to increased demand and soaring natural gas prices, which heavily impact PJM’s fossil fuel-dependent grid. The push for new fossil fuel power plants faces challenges, as building such infrastructure is costly and time-consuming, with utilities wary of committing to long-term investments amid uncertain future demand. In contrast, tech companies have increasingly favored renewable energy sources like solar and battery storage, which