The White House is expected to issue a directive on Friday outlining an emergency power auction program, under which technology companies would bid to fund the construction of new power plants. According to sources familiar with the matter, the directive will instruct PJM Interconnection, the United States' largest grid operator, to conduct a special electricity auction where tech firms can bid for 15-year power purchase agreements to support the development of new generation facilities. The PJM grid serves 13 states and has been under sustained strain from a surge in data center construction, fueled by the recent artificial intelligence boom, which has also driven up costs in recent power auctions.
The White House stated that the National Energy Leadership Committee, under its leadership, along with the governors of Pennsylvania, Ohio, Virginia, and several other states, are urging the grid operator to take urgent measures to boost energy supply and curb soaring prices. White House spokesperson Taylor Rogers emphasized, "Ensuring that Americans have access to reliable, affordable electricity is one of President Trump's top priorities; this action will provide much-needed long-term relief for the Mid-Atlantic region." Earlier this week, President Trump declared on social media, "I will not allow Americans to pay higher electricity bills because of data centers," revealing that his administration is collaborating with several U.S. tech companies and that "major announcements are expected in the coming weeks."
Market analysts suggest that if implemented, this policy would directly benefit power producers that have already profited from rising demand on the PJM grid, including publicly traded companies such as Vistra (VST.US), Constellation Energy (CEG.US), and NRG Energy (NRG.US).
Comments