Trump Pressures PJM Grid Operator to Force Tech Firms to Fund Power Plants

President Donald Trump and a bipartisan coalition of 13 to 14 governors announced a plan on January 16, 2026, to shift the cost of new power plant construction from residential consumers to AI data center operators. The initiative, coordinated through the National Energy Dominance Council, pressures PJM Interconnection—the largest grid operator in the U.S.—to hold an emergency reliability auction by September 2026. Under the proposal, technology companies would bid on 15-year contracts to support approximately $15 billion in new baseload generation capacity, including coal, natural gas, and nuclear power.

The administration frames the move as a necessary response to a national energy emergency, arguing that the AI boom is straining the grid and driving up household electricity bills. Trump stated that big technology companies must "pay their own way" to ensure Americans do not "pick up the tab" for their power consumption. Some governors, including Pennsylvania's Josh Shapiro, warned that their states might leave the PJM market if the operator does not implement these reforms and extend price caps on wholesale electricity.

PJM Interconnection, which was not invited to the initial announcement, responded by reviewing the principles and proposing its own 12-measure plan. This includes fast-tracking plant interconnections and implementing a "bring your own generation" requirement that could allow the operator to cut power to large users during emergencies. While Microsoft has already committed to paying higher fees to protect consumers, other industry groups and tech firms have warned that higher capacity charges could slow AI deployment in the U.S.