Trump Administration and Governors Urge Tech Firms to Fund AI Power Infrastructure

The Trump administration, in collaboration with a bipartisan group of governors, has advocated for reforms to the PJM Interconnection grid to ensure that the development of new artificial intelligence (AI) data centers does not escalate electricity costs for consumers. Federal and state officials have endorsed a statement of principles urging technology companies to finance new power plants within PJM's jurisdiction, addressing the surge in AI data centers. The National Energy Dominance Council has reached agreements with several states for over $15 billion in new power-generation projects.

The statement also calls on PJM to conduct an emergency capacity auction to secure additional power and to shield residential customers from potential capacity price increases. Energy Secretary Chris Wright and Interior Secretary Doug Burgum, along with Republican Governor Glenn Youngkin of Virginia and Democratic Governors Wes Moore of Maryland and Josh Shapiro of Pennsylvania, signed the plan at the Eisenhower Executive Office Building near the White House.

Wright stated that President Trump had "asked governors across the Mid-Atlantic to come together and call upon PJM to allow America to build big reliable power plants again." He emphasized that the directives would "restore affordable and reliable electricity so American families thrive and America's manufacturing industries once again boom."

PJM's grid serves over 65 million people across 13 states and the District of Columbia. Governors from each state have signed onto the statement of principles. PJM's Board of Managers announced plans to address the additional load from new AI data centers, including the immediate initiation of securing more power and a backstop generation procurement process to meet short-term reliability needs. The board also expects the data center community to play a constructive role in addressing the reliability and affordability challenges associated with the forecasted load additions in the PJM region.

This initiative highlights bipartisan cooperation between the Republican White House and Democratic Governors Moore and Shapiro, both of whom have been advocating for increased power supply and lower energy prices. Moore stated, "We cannot build a 21st-century economy on an energy market that blocks new supply. This moment calls for urgency. Maryland families and businesses must be served by a reliable grid without shouldering the cost of sky-high energy bills." Shapiro, who previously sued PJM in 2024 to halt price hikes, expressed support for the White House's adoption of solutions Pennsylvania has been promoting.