Key Takeaways:
- The White House and a bipartisan group of governors are urging the operator of the mid-Atlantic power grid to take action to boost energy supply and curb price hikes.
- The plan includes holding a power auction for tech companies to bid on contracts to build new power plants.
- The governors and the Trump administration are under pressure to protect consumers and businesses from the rising costs of feeding Big Tech’s energy-hungry data centers.
- Consumer advocates argue that ratepayers in the mid-Atlantic electricity grid are already paying billions of dollars in higher bills to underwrite the cost of supplying power to data centers.
- The issue of electricity costs is expected to be a key factor in the upcoming elections, with voters in several states citing economic concerns as their top issue.
Introduction to the Energy Crisis
The White House and a bipartisan group of governors are pressuring the operator of the mid-Atlantic power grid, PJM Interconnection, to take urgent steps to boost energy supply and curb price hikes. This effort is aimed at addressing the growing concern among voters about the enormous amount of power used for artificial intelligence, particularly ahead of the elections later this year. As Taylor Rogers, a White House spokeswoman, stated, "Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region."
The Plan to Address the Energy Crisis
The White House’s National Energy Dominance Council and the governors of several states, including Pennsylvania, Ohio, and Virginia, want to compel PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants. This plan was first reported by Bloomberg and is seen as a way to address the rising demand for energy from data centers that underpin the explosion in demand for artificial intelligence. According to a person familiar with the plans, Pennsylvania Gov. Josh Shapiro, a Democrat, has made his participation in the event contingent on including a provision to extend a limit on wholesale electricity price increases for the region’s consumers.
Reaction from the Grid Operator
However, the operator of the grid, PJM Interconnection, has not been invited to the event and will not be attending. As spokesperson Jeff Shields stated, "PJM was not invited. Therefore, we would not attend." This lack of participation from the grid operator may raise questions about the effectiveness of the plan and the ability of the White House and governors to implement their proposals.
The Impact on Consumers
The issue of electricity costs is a growing concern for consumers, with more Americans falling behind on their electricity bills. Consumer advocates argue that ratepayers in the mid-Atlantic electricity grid are already paying billions of dollars in higher bills to underwrite the cost of supplying power to data centers. However, they also argue that these billions of dollars are not resulting in the construction of new power plants necessary to meet the rising demand. As one consumer advocate noted, the costs of feeding Big Tech’s energy-hungry data centers are being passed on to consumers, who are already struggling to pay their electricity bills.
The Political Implications
The issue of electricity costs is expected to be a key factor in the upcoming elections, with voters in several states citing economic concerns as their top issue. Pivotal contests in November will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill for the data centers that underpin the explosion in demand for artificial intelligence. In parts of the country, data centers are coming online faster than power plants can be built and connected to the grid. As one politician noted, "Electricity costs were a key issue in last year’s elections for governor in New Jersey and Virginia, and in Georgia, where Democrats ousted two Republican incumbents for seats on the state’s utility regulatory commission."
The Rising Costs of Energy
Gas and electric utilities sought or won rate increases of more than $34 billion in the first three quarters of 2025, according to consumer advocacy organization PowerLines. This is more than double the same period a year earlier. The rising costs of energy are a concern for consumers and businesses alike, and the White House and governors are under pressure to take action to address this issue. As one consumer advocate stated, "The costs of energy are becoming unsustainable for many consumers, and it’s time for the White House and governors to take action to address this issue and ensure that consumers have access to reliable and affordable electricity."
https://abcnews.go.com/US/wireStory/white-house-governors-fix-ai-driven-power-shortages-129268663