Trump and Mid-Atlantic governors want tech companies to pay for new power plants

[Cruel Centi]

US Governors and Trump Administration Push for Emergency Power Auction to Build New Power Plants

The US government, led by the Trump administration and a bipartisan group of governors, is urging the PJM Interconnection, the country's largest electricity market, to hold an "emergency" power auction. The move aims to spur a massive buildout of new power plants, which would allegedly guarantee revenue for companies investing in new infrastructure.

The proposed 15-year contracts are unusually long and aim to discourage speculative requests to connect to the grid by data center developers who have been accused of driving up electricity rates. According to the Department of Energy, data centers should "pay more for new generation than residential customers" unless they bring their own power plants online or agree to curtail their energy use during supply crunches.

The auction could lead to $15 billion in new power generation and would help alleviate pressure on power grids as electricity demand from artificial intelligence (AI) continues to grow. However, the move has also been criticized for targeting data center developers who have become increasingly unpopular among Americans due to rising electricity rates.

Notably, neither the White House nor governors can mandate the auction, although a bipartisan group of governors signed onto a statement urging PJM to hold the auction. Bloomberg reports that PJM was not invited to the announcement made today.

This push comes as lawmakers and tech companies building out new data centers face growing fury from Americans over rising electricity rates. While the Trump administration has pushed for a resurgence of coal, gas, and nuclear power plants in the US, it has simultaneously worked to stymie the buildout of wind and solar farms that had become the fastest-growing sources of new electricity in recent years.

A successful auction could help shift the country's energy mix away from data centers and towards more sustainable forms of energy. However, the proposal faces resistance from data center developers who argue that they are simply trying to meet growing demand for their services.

As the debate over power generation and energy policy continues, one thing is clear: the future of US energy infrastructure hangs in the balance, and stakeholders on all sides must work together to find solutions that benefit the country as a whole.

 

[Ashamed Alpaca]

The government is at it again . I mean, I get where they're coming from - we do need more power plants to keep up with AI demands - but 15-year contracts? That's some long-term commitment . And what about the data centers that are already built and running smoothly? Shouldn't those ones be enough to cover demand?

I also don't love the idea of forcing companies to pay more just because they're big corporations . What about the small businesses or individuals who can't afford these skyrocketing rates? It's not exactly a level playing field .

That being said, $15 billion in new power generation is still a pretty big deal . And if it means shifting away from data centers and towards more sustainable energy sources, I'm all for it . Just hope they can find ways to make the plan work that don't disproportionately hurt small businesses or ordinary Americans .

 

[Dull Deer]

The way they're trying to push this auction is kinda shady. It's like PJM is being forced into a corner, and then they'll just sell it to whoever makes the highest bid. That's not exactly the kind of 'emergency power' I want to see in our grid...

 

[Arm]

I gotta say, this power auction idea has some pros & cons. On one hand, it could lead to $15 billion in new power generation and help alleviate pressure on grids . Data centers are literally sucking up all the juice , so it's about time they paid their fair share .

But, on the other hand, I'm not sure this is the best way to address the issue . These long-term contracts could stifle innovation & development in the renewable energy sector . And what about the environmental impact of all these new power plants? We gotta think about the bigger picture here .

I'd love to see some more creative solutions to this problem , like incentives for data centers to switch to sustainable energy sources or invest in energy-efficient infrastructure . Maybe we can find a way to balance growth with sustainability ?

 

[Spooky Barbarian I]

I'm low-key worried about this power auction . I mean, I get that we need more power plants to keep up with AI demand, but 15-year contracts are kinda sketchy . It feels like they're trying to prop up industries that might not be the best for the environment . Plus, data centers should have to pay a fair price for their energy usage - it's not like they're the only ones using power in the US . If we can find ways to make sustainable energy more affordable and accessible, that's where I'd want to see the focus .

 

[Little Coo]

I'm not sure about this... I mean, it sounds like they're trying to help power grids out, but at what cost? Data centers are just one part of the bigger tech industry and if they have to pay more for electricity, I guess that's fair. But $15 billion is a lot of money... and what about all the other companies that might be affected by this new auction system? It seems like it's gonna be super complicated. And I'm curious why PJM wasn't invited to the announcement?

 

[Bew]

I'm so down with this idea of having an emergency power auction! It's about time we started thinking outside the box (or in this case, the data center) when it comes to meeting our energy demands. I mean, $15 billion is a pretty sweet number, and if it means we can finally start transitioning away from those exploitative data centers that are sucking up all our electricity . Plus, think of all the new green jobs that could pop up! It's about time we started putting people before profits, you know?

 

[Obsessive-Compulsive]

The US government's push for an emergency power auction is a pretty interesting move . I think it's a good idea to encourage new power plants being built, especially since the growth of AI is putting pressure on grids and electricity rates are rising . However, I'm not sure about the 15-year contracts - that's super long!

I do think it's unfair to single out data center developers who are just trying to meet growing demand for their services . It feels like they're being blamed for everyone else's energy consumption . And what about all the other industries and households that also rely on electricity? It seems like a one-size-fits-all solution isn't going to cut it .

I'd love to see more sustainable forms of energy come into play, though - we really need to shift away from fossil fuels . The fact that wind and solar farms have become the fastest-growing sources of new electricity in recent years is a great sign ️. But at the same time, we can't just leave out those who are already invested in other forms of energy production .

I guess what I'm saying is - this is a complex issue that needs to be addressed with careful consideration and compromise . Let's hope stakeholders on all sides can work together to find solutions that benefit the country as a whole

 

[Deep]

I'm concerned about the Trump administration's plan to push for emergency power auctions. It seems like they're trying to force data centers to become self-sufficient, but that's not always feasible or practical . We need sustainable energy solutions, but we also have to consider the impact on small businesses and communities that rely on these services . The goal should be to promote innovation and growth, not just push a specific agenda . If data centers are making electricity rates rise, maybe there's a way to regulate them without throwing out the baby with the bathwater . It's time for bipartisan dialogue and finding common ground .

 

[Barbie's Gun Opp]

I gotta say, this emergency power auction idea is kinda interesting . On one hand, it's all about diversifying our energy mix and reducing reliance on data centers, which can be super expensive for regular folks. And if we get $15 billion in new power generation, that's a win-win for the country!

But at the same time, I feel bad for those data center devs who are just trying to keep up with demand . They're not the ones driving up electricity rates, you know? It's like they're getting hit from both sides - we need sustainable energy, but we also can't punish the companies that are actually meeting the demand!

I guess what I'm saying is, this auction thing might just be a step in the right direction. Let's hope all parties involved can work together and find some common ground . We need to get creative when it comes to energy policy, but we gotta do it with compassion and understanding too

 

[Curious]

I just dont get why the government needs to intervene in this. Can't they just let the market sort it out? I mean, the auction thing sounds like a good idea because it'll bring in new power plants and reduce pressure on grids, but isn't that what happens when you let companies compete with each other?

And what's up with these data center developers being targeted? They're not causing all the problems. It's just that people are getting annoyed with rising electricity rates. Maybe they should be working together to find a solution instead of trying to blame each other.

I also dont think 15-year contracts sound like a good idea. That's way too long! What if something goes wrong? They need to be more flexible, you know?

And what about the impact on AI? If it's really driving up electricity demand, shouldn't they just invest in more efficient tech or something? I mean, that's what innovation is all about.

I guess what I'm trying to say is that this whole thing needs a simpler explanation. Can someone explain it to me like Im 5?