Trump Signs Pact Requiring Tech Firms to Fund Power Plants

Rising electricity prices sparked by artificial intelligence data center demand have become a major political flashpoint in the United States. Research from Goldman Sachs indicates electricity prices rose 6.9% in 2025, more than double the inflation rate, with an additional 6% increase projected through 2027. The PJM Interconnection region saw the most extreme shift, with capacity prices jumping from $28.92 in 2024-2025 to $329.17 per megawatt-day for 2026-2027.

In response, Donald Trump signed a pact requiring tech companies to fund the construction of new power plants within the PJM Interconnection and secured promises from Microsoft to avoid driving up consumer costs. Legislative action has also emerged, as Senators Josh Hawley and Richard Blumenthal introduced a bipartisan bill to shield consumers from data center-driven bill hikes. In New York, legislators proposed a bill to pause data center construction entirely.

Major hyperscalers have attempted to mitigate community backlash. Microsoft pledged to pay utility rates sufficient to cover its energy costs, while Amazon.com argued its infrastructure would not increase electricity rates and highlighted efforts to reduce water usage per unit of computing.