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

The Trump administration, along with governors in the PJM grid region, is pushing for the grid operator to hold an auction for 15-year contracts for $15 billion worth of new generating capacity. The administration specifically wants tech companies, whose data center demand is expected to nearly triple, to bid on these contracts even if they don't immediately need the power. PJM, which serves 13 Mid-Atlantic and Midwest states including Northern Virginia, is reviewing the non-binding 'statement of principles' but seems hesitant, with a spokesman noting they were not invited to a related event. The region faces rising electricity rates, partly due to high natural gas prices and increased demand from data centers supporting AI. Utilities are reluctant to build new fossil fuel plants due to long timelines and risk if AI demand slows, while tech companies prefer faster, modular renewables like solar and batteries.

(Source：TechCrunch)