**Trump Administration Wants Tech Companies to Spend $15B on Power Plants – Even if They Don’t Need Them**
In a move that’s got some industry insiders scratching their heads, the Trump administration is pushing for tech companies to purchase $15 billion worth of new power plants – whether they use them or not. The plan involves holding an auction for 15-year contracts with grid operator PJM, which serves over 65 million people in the Mid-Atlantic and Midwest.
According to the administration, demand for energy from data centers is expected to skyrocket over the next decade, but PJM is being a bit coy about the whole thing. When asked for comment, a spokesperson gave a lukewarm response, saying “We don’t have a lot to say on this. We weren’t invited to the occasion they’re apparently having tomorrow and we won’t be there.”
The push for these contracts comes at a time when energy prices in the region are on the rise, with a 10-15% increase expected in 2025 compared to the previous year. The growth in demand for energy is attributed in part to the increasing popularity of AI and other applications in tech, but natural gas prices have also been on the upswing, making up 60% of PJM’s energy mix.
Grid operators are stuck between a rock and a hard place, as building new fossil fuel power plants is a complex and costly process that takes years to complete. Utilities are hesitant to commit to these long-term investments, fearing that if the AI boom fizzles, they’ll be left with pricey, decades-old power plants that can’t be easily repurposed.
Meanwhile, tech companies are getting increasingly savvy about their energy needs, opting for renewables like solar and batteries, which are cheaper, more modular, and faster to deploy. A typical solar farm, for example, can take about 18 months to build and start delivering energy, making it a good fit for data center building timelines and risk management.
We’ll be keeping an eye on this developing story, and if you’re in San Francisco on October 13-15, 2026, be sure to check out our TechCrunch event to learn more about the intersection of energy and tech.
**Update:** This article was sourced from TechCrunch, with more information available here.
