Amid growing concerns about energy consumption linked to artificial intelligence, the White House, alongside a coalition of bipartisan governors, is urging the operator of the mid-Atlantic power grid to take immediate action to enhance energy supply and mitigate rising electricity prices. This initiative is particularly timely as it comes ahead of elections later this year, where voters are increasingly worried about the significant energy demands posed by AI technologies.
The administration has stated that its National Energy Dominance Council, along with governors from states such as Pennsylvania, Ohio, and Virginia, aims to push PJM Interconnection—the grid's operator—to conduct a power auction. This auction would allow tech companies to bid for contracts to construct new power generation facilities. The plan is set to be formalized in a statement of principles that will be signed on Friday by President Trump and the governors.
Taylor Rogers, a spokesperson for the White House, emphasized the importance of reliable and affordable electricity, stating, "One of President Trump’s top priorities is ensuring that the American people have access to dependable and cost-effective power. This initiative would provide essential, long-term relief for residents in the mid-Atlantic region."
Governor Josh Shapiro of Pennsylvania, a key figure expected at the event, has reportedly conditioned his participation on the inclusion of measures to maintain limitations on wholesale electricity price increases for consumers in the area. A source familiar with Shapiro's plans requested anonymity due to the announcement's timing.
Interestingly, PJM Interconnection has not been invited to the event, as confirmed by their spokesperson Jeff Shields, who stated, "PJM was not invited. Therefore we would not attend."
As for President Trump’s attendance, it remains uncertain, as this event has not appeared on his public agenda.
There is significant pressure on both Trump and the governors to protect consumers and businesses from the financial burden associated with powering the extensive data centers operated by major tech companies. Alarmingly, many Americans are falling behind on their electricity payments, illustrating the urgent need for reform.
Consumer advocates argue that individuals living within the mid-Atlantic electricity grid—which spans parts of 13 states from New Jersey to Illinois, including Washington, D.C.—are already incurring billions of dollars in elevated charges to support energy provision for these data centers, some of which have yet to be constructed. They contend that despite these rising costs, there has been little progress in the development of new power plants necessary to accommodate the increased energy demand.
With pivotal elections scheduled for November, communities grappling with soaring electric bills or disputes over who pays for the energy demands of data centers will play a crucial role in determining outcomes. In several regions, the speed at which data centers are coming online is outpacing the construction and integration of new power plants into the grid.
Last year, issues surrounding electricity costs were at the forefront of gubernatorial elections in New Jersey and Virginia, both of which are hotspots for data centers, as well as in Georgia. Here, Democratic candidates successfully ousted two Republican incumbents from state utility regulatory positions, reflecting the electorate's growing concern over economic matters. Voters across New Jersey, Virginia, California, and New York City identified economic issues as a primary concern, setting the stage for a robust debate over affordability as parties prepare for the upcoming midterms.
In the first three quarters of 2025, gas and electric utilities sought or received rate hikes exceeding $34 billion, according to the consumer advocacy group PowerLines, which represents more than double the increases recorded during the same timeframe the previous year.
