The Trump administration is pushing the nation’s largest electricity grid, PJM Interconnection, to require major technology companies to finance new power plants in response to surging energy demand driven by artificial intelligence. The proposal, set to be unveiled Friday, calls for an emergency auction in which tech firms would bid for contracts to fund new electricity generation capacity. The move aims to address rising electricity prices and growing concerns about grid reliability. PJM Interconnection serves over 65 million people across 13 states and Washington, D.C., including northern Virginia—the largest data center hub in the world. The region has seen a dramatic spike in electricity demand due to the rapid expansion of AI-powered data centers, which require massive amounts of power to operate and train models. According to a White House official speaking to CNBC, the administration is urging PJM to take immediate action to prevent further price hikes and reduce the risk of blackouts. Energy Secretary Chris Wright, Interior Secretary Doug Burgum, and bipartisan governors will jointly announce the proposal, framing it as a historic, cross-party effort to correct what the administration calls systemic failures in energy planning. “Under President Trump's leadership, the administration is leading an unprecedented bipartisan effort urging PJM to fix the energy shortfall failures of the past, prevent price increases, and reduce the risk of blackouts,” said White House spokesperson Taylor Rogers. The plan comes amid growing public frustration over rising utility bills, despite Trump’s campaign promise to lower energy costs. Data from watchdog group Monitoring Analytics shows that $23 billion in capacity costs in PJM over recent years are directly tied to data center expansion. These expenses are ultimately passed on to consumers, resulting in what the group calls a “massive wealth transfer” from households and businesses to tech firms. PJM recently reported it is six gigawatts short of its reliability target for 2027—equivalent to the output of six large nuclear power plants. This deficit increases the likelihood of power outages. Abe Silverman, who served as general counsel for New Jersey’s public utility board from 2019 to 2023 under Democratic Governor Phil Murphy, warned that the situation could lead to more frequent blackouts. “Instead of a blackout happening every one in 10 years, we're looking at something more often,” he said. The proposal has drawn attention in key political battlegrounds. In recent state elections, Democratic candidates Mikie Sherrill and Abigail Spanberger won in New Jersey and Virginia—regions heavily impacted by rising energy costs—highlighting the political sensitivity of the issue. The administration’s push reflects a broader strategy to hold tech companies accountable for infrastructure strain caused by AI growth.