Summary:
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Trump expected to announce emergency power auction on Friday
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Tech firms would be forced to fund new power plants for data centres
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PJM would run the auction, potentially backing $15bn of new generation
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Aim is to curb electricity price rises hitting households
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Data-centre demand seen as key driver of grid strain
President Donald Trump is expected to announce an unprecedented intervention in U.S. power markets, unveiling plans for an “emergency power auction” that would require major technology companies to directly fund new electricity generation to support the rapid expansion of data centres.
Under the proposal, the country’s largest grid operator, PJM Interconnection, would be directed to run a special reliability auction designed to accelerate the construction of new power plants. The initiative could underpin as much as $15 billion in new generation capacity, according to officials familiar with the plan.
The move reflects growing concern within the administration and among state leaders that surging electricity demand from artificial intelligence and cloud-computing infrastructure is outpacing supply, pushing household power bills higher and fuelling political backlash. PJM’s network spans 13 states from the Mid-Atlantic to the Midwest and serves more than 67 million people, making it one of the most exposed regions to data-centre-driven demand growth.
Under the proposed structure, technology companies would bid for long-term contracts tied to new power generation, effectively paying to secure the electricity required for their data centres. The aim is to ensure the cost of new power plants does not fall on households, while addressing reliability concerns on an overstretched grid.
Trump has repeatedly argued that data-centre operators should bear responsibility for the power they consume, saying this week he does not want American households paying higher electricity bills because of AI infrastructure. Electricity affordability has become a central political issue ahead of November’s midterm elections, with power prices continuing to rise even as fuel costs have eased.
U.S. electricity prices have climbed sharply over the past year, with the average retail electricity price rising to a record, adding pressure to household budgets already strained by higher living costs.
The administration is framing the auction as a one-off emergency measure rather than a permanent shift in market design, intended to stabilise prices and ensure adequate supply before demand accelerates further
