Key Takeaways
- The White House and a bipartisan group of governors are holding an event to address power shortages and price spikes from data centers for artificial intelligence
- The event aims to pressure the operator of the mid-Atlantic power grid, PJM Interconnection, to hold a power auction for tech companies to bid on contracts to build new power plants
- The plan includes a provision to extend a limit on wholesale electricity price increases for the region’s consumers
- Consumer advocates say ratepayers in the mid-Atlantic electricity grid are already paying billions of dollars in higher bills to underwrite the cost to supply power to data centers
- The issue of electricity costs is expected to be a key factor in the upcoming elections, with voters citing economic concerns as a top issue
Introduction to the Issue
The White House and a bipartisan group of governors are taking aim at power shortages and price spikes from data centers for artificial intelligence, holding an event on Friday to address the rising concern among voters. As stated by Taylor Rogers, a White House spokeswoman, "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 event is expected to include the signing of a statement of principles by the Trump administration and governors, aimed at compelling PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants.
The Plan to Address Power Shortages
The plan, first reported by Bloomberg, includes a provision to extend a limit on wholesale electricity price increases for the region’s consumers. Pennsylvania Gov. Josh Shapiro, a Democrat, made his participation in Friday’s event contingent on including this provision, according to a person familiar with Shapiro’s plans. The provision is aimed at protecting consumers from further price increases, as they are already paying billions of dollars in higher bills to underwrite the cost to supply power to data centers. As Jeff Shields, a spokesperson for PJM Interconnection, stated, "PJM was not invited. Therefore we would not attend," highlighting the grid operator’s reluctance to participate in the event.
The Impact on Consumers
Consumer advocates say that the billions of dollars that consumers are paying to underwrite the cost to supply power to data centers is not resulting in the construction of new power plants necessary to meet the rising demand. Instead, the costs are being passed on to consumers, who are already struggling to pay their electricity bills. As reported by PowerLines, a consumer advocacy organization, gas and electric utilities sought or won rate increases of more than $34 billion in the first three quarters of 2025, more than double the same period a year earlier. This has led to a significant increase in the number of Americans falling behind on their electricity bills, making the issue of electricity costs a key concern for voters.
The Upcoming Elections
The issue of electricity costs is expected to be a key factor in the upcoming elections, with voters citing economic concerns as a 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, leading to a surge in demand for electricity. As stated by a person familiar with Shapiro’s plans, "The governor is committed to finding solutions to the high cost of electricity in the region, and this event is an important step in that process."
The Role of Data Centers
Data centers are a major driver of the increasing demand for electricity, with their energy-hungry servers and cooling systems requiring large amounts of power to operate. The construction of new data centers is outpacing the construction of new power plants, leading to a shortage of electricity in some areas. This has resulted in a significant increase in electricity costs, as utilities are forced to purchase power on the wholesale market to meet the demand. As reported by Bloomberg, the White House and governors are under pressure to insulate consumers and businesses alike from the costs of feeding Big Tech’s energy-hungry data centers.
Conclusion
In conclusion, the White House and a bipartisan group of governors are taking steps to address the power shortages and price spikes from data centers for artificial intelligence. The event on Friday aims to pressure PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants, and includes a provision to extend a limit on wholesale electricity price increases for the region’s consumers. As the issue of electricity costs continues to be a key concern for voters, it is likely that the upcoming elections will be influenced by the efforts of the White House and governors to address this issue. As stated by Taylor Rogers, "This would deliver much-needed, long-term relief to the mid-Atlantic region," highlighting the importance of finding solutions to the high cost of electricity in the region.
https://www.10tv.com/article/syndication/associatedpress/how-the-white-house-and-governors-want-to-fix-ai-driven-power-shortages-and-price-spikes/616-d308d7e9-b55e-4424-a8e7-0741cad10ed0