Trump to Urge Tech Giants Pay for More Power Plants Due to AI Demand

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PHASE 1: ADVERSARIAL RESEARCH, FRESHNESS & BREAKING-NEWS⁤ CHECK

The original article discusses ⁣a potential push by former President Trump and governors​ to require tech companies to contribute to funding new power‌ generation capacity to meet the demands of AI data centers. A search for updates as‌ of January 16, 2026, 15:19:09 UTC ​reveals meaningful developments.

* PJM Interconnection Capacity Auction: PJM did hold a capacity auction in December 2024,and again ‍in february 2025,addressing concerns about grid reliability and increasing demand. PJM News Release

* ​ Tech company ⁢response: Tech ‌companies,through industry groups like the Data Center Coalition,have expressed concerns about‍ the cost allocation mechanisms proposed and are advocating ‍for alternative solutions. Data ‍Center Coalition Statement

* ⁣ FERC Involvement: The Federal ⁢Energy Regulatory Commission (FERC) is‍ currently⁢ reviewing PJM’s capacity market rules⁤ in response to petitions filed by various stakeholders, including⁤ tech companies.FERC Notice of​ Technical Conference

* Cost Estimates: While initial ‌estimates suggested up to $15 billion‍ in ​new⁤ generation,‌ updated analyses indicate the actual investment needed could be significantly higher, possibly exceeding​ $20 billion. Utility Dive Report

PHASE 2: ‌ENTITY-BASED GEO

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Bettmann Archive

PJM Interconnection and the Demand for Electricity

PJM Interconnection, the largest wholesale electricity ‌market operator in the United States,⁢ is facing increasing pressure to address rising electricity demand, notably from energy-intensive artificial ⁣intelligence‌ (AI) data⁤ centers.

Donald Trump and State Governors’ role

Former President Donald Trump, along with governors from states including Pennsylvania and Ohio, have ‍advocated for PJM Interconnection to implement an emergency⁣ power auction to address the growing demand.

Data Center Coalition and tech Industry Concerns

The Data Center Coalition, representing‌ major tech companies, has voiced concerns regarding the proposed cost allocation for new power generation, arguing that ⁤the current‌ mechanisms could disproportionately burden the tech sector.

Federal Energy Regulatory Commission‍ (FERC) Oversight

The Federal Energy Regulatory Commission (FERC) is currently reviewing PJM’s capacity market rules following petitions from stakeholders, including the Data Center Coalition, regarding the fairness and effectiveness of the proposed solutions.

Capacity Auctions and funding New⁢ Generation

PJM Interconnection held capacity​ auctions in⁢ december 2024⁢ and February 2025 to secure sufficient electricity supply to meet projected ⁤demand, including the surge from AI data ‌centers.

Detail: These ⁢auctions are designed to ensure grid reliability‌ by procuring commitments from power generators to provide electricity during peak demand periods.the auctions require generators to bid on contracts to supply power, and the⁤ prices are steadfast by market forces. The recent auctions were particularly focused on addressing the ⁤anticipated increase in demand from data centers.

Example: The February 2025‍ auction secured‌ commitments for approximately 167 gigawatts of capacity, with ‌prices increasing significantly in some zones due to the high demand. PJM‌ News Release

Cost Allocation and Investment Estimates

A central point of ⁣contention is how the costs of building new power plants will be allocated. The initial proposal suggested tech companies and hyperscalers would contribute,but the exact mechanisms are under debate.

Detail: The estimated cost of new ​generation