techcrunch.com
The Trump administration is urging the PJM grid operator, which serves 65 million people across 13 states, to hold a $15 billion auction for new power capacity. The proposal suggests that tech companies, facing a nearly threefold increase in demand for data centers, should bid on 15-year contracts to fund this expansion—even if they don’t ultimately need the power.
PJM has received the proposal coolly, noting it wasn’t consulted on the non-binding plan. The grid is already under pressure; electricity rates have risen 10-15%, driven by spiking natural gas prices and a 10% increase in peak load over the last decade. Building traditional fossil fuel plants is slow and risky for investors, prompting tech companies to instead favor faster, modular solutions like solar and batteries to meet AI-driven energy needs.
Read More
