Trump Wants Big Tech to Pay More; AI Drives Utility Bills Up For Everyone

Trump Wants Big Tech to Pay More: The Trump administration made a new move on Friday. They want big tech to pay more as energy demand goes up. This change is because of fast-growing data centers that power AI, putting pressure on the U.S. power grid and household bills.

The plan includes an “emergency wholesale electricity auction.” It aims to secure long-term power contracts for large tech firms. The White House believes this could unlock over $15 billion in new generation. It would also shift costs from taxpayers to the biggest energy users.

Interior Secretary Doug Burgum calls it a way to bring in the age of artificial intelligence. He says it will be funded by tech companies, not taxpayers. Supporters see it as part of a broader tech policy push by the Trump administration.

The politics are clear. Utility prices have gone up, and higher bills hurt voters who are already watching their expenses. More details on the energy plan and its timing are in coverage of the emergency electricity auction. Republicans are weighing the risks of rising utility prices against the benefits of AI growth.

This tension also shows in the debate over AI and tech regulations. Another push by the Trump administration aims to keep rules consistent across states. Supporters say it could speed up deployment and investment. Critics, though, warn it might limit local oversight, as reported in reporting on a national AI rulebook.

Trump Wants Big Tech to Pay More Key Takeaways

• The White House says Trump wants big tech to pay more for the energy needed to run AI at scale.
• An emergency wholesale electricity auction is pitched as a tool to secure long-term power contracts for large tech buyers.
• The administration claims the plan could support more than $15 billion in new power-generation projects.
• Doug Burgum says the goal is new power plants funded by technology companies, not taxpayers.
• Rising utility bills add political pressure as the affordability debate intensifies.
• The energy push lands amid broader Trump administration tech policy debates and shifting tech industry regulations.

What Trump’s new energy push would mean for Big Tech and the power grid

Artificial intelligence is growing fast, putting a big strain on the electric grid. This is causing higher bills for many people. Utilities and regulators are worried about the demand.

The White House thinks the biggest users should pay more. They say this is fair because they use a lot of energy.

Friday rollout: making tech companies “pay their own way” for future energy use

On Friday, the White House introduced a plan. It aims to make tech companies pay for the electricity they use. This is mainly for data centers that support AI.

Data centers are growing fast, but the grid can’t keep up. This plan aims to ensure there’s enough power.

Many people are talking about this idea. It includes a summary of the proposed PJM approach. It also raises questions about how to make big tech companies more accountable.

The proposal: an “emergency wholesale electricity auction” tied to long-term power contracts

The plan includes an emergency wholesale electricity auction. It offers long-term contracts to ensure a steady supply of power. This is seen as a reliability backstop.

It aims to match new power plants with big users. This way, everyone knows who will use the power. It’s not just guessing.

Funding goal: Trump team says the approach could support more than $15 billion in new generation projects

Trump’s team believes the plan could fund over $15 billion in new power projects. This could lead to faster development of natural gas and nuclear plants.

• Support new capacity without immediately raising average household rates
• Give developers clearer price signals for building in constrained zones
• Improve planning by tying demand to enforceable purchasing duties

Who it affects: AI-fueled data center demand as grids strain and consumer prices rise

PJM Interconnection is feeling the pressure. It serves over 67 million people and expects a big increase in demand by 2030. Data centers can grow fast, but the grid takes years to keep up.

Big companies like Amazon and Google might handle costs more effectively. But smaller AI players could face big price swings. This situation makes big tech’s revenue sharing important for keeping the grid running.

Supporters see it as a one-time fix that will later rely on market mechanisms. Critics are looking closely at the details. They want to know how costs will be split and how it will work with state rules and PJM’s auctions.

Trump Wants Big Tech to Pay More

The White House has a simple idea: match the growth of data centers with new power supplies. This way, families won’t see their bills go up too much. It also starts a bigger conversation about taxing tech companies for energy costs.

How the contracts would work: pay for a set amount of power, whether it’s used or not

The plan is to use long-term “take-or-pay” contracts. Big users will agree to buy a certain amount of power, even if they don’t use it all.

This approach is meant to ensure developers can fund new plants and grid upgrades. It changes how internet companies are taxed, making them pay for the power they help create, not just what they use.

Why that matters: steadier revenue for grid operators and incentives to add power generation

Guaranteed payments could make the PJM Interconnection market more stable. It could also speed up the addition of new power sources. Recently, PJM has faced tight supply signals, and data centers have become a big cost factor for consumers.

The administration wants to support over $15 billion in new power generation. They’re asking PJM to hold an emergency auction and limit what old plants can charge. This was discussed alongside PJM power contract proposals as northern Virginia’s data center area continues to grow.

Policy framing: government tech taxation, internet companies’ tax obligations, and tech giants’ financial responsibility

This plan is seen as a way to make tech giants pay more for energy. It puts their financial responsibility at the heart of energy policy. It says that those who cause new peak demand should help pay for the additional power needed.

At the White House, governors from both parties were present. Microsoft has agreed to cover the cost of expanding the transmission network. Meta plans to work with nuclear energy companies to provide clean, reliable power.

What’s not clear: the announcement was described as a “landmark agreement,” but not clearly a binding legal document

The announcement called it a “landmark agreement,” but it’s unclear whether it’s legally binding. This raises questions about enforcement, timelines, and how to handle disputes if market conditions change.

PJM was not invited to the White House event, even though the plan relies on PJM. The legal basis of the plan is also unclear. This is important, as seen in other federal fights, like limits on emergency trade powers.

Rising electricity prices, AI demand, and the political stakes in the United States

Electricity prices are now a big concern for many families. The idea of making big tech pay more is popular. But it’s the everyday bills that really matter.

Consumer power prices have been rising for years. The Bureau of Labor Statistics reports a 5% increase in electricity prices in U.S. cities from January 2025 to December.

Consumer impact

Households with tight budgets feel the pinch the most. The Center for American Progress found a 9.6% increase in utility costs in 2025. This makes basic needs more expensive.

In Pennsylvania’s Monroe County, people link high grocery and electricity bills to the same issue. A local focus on affordability is key. This concern affects how people view tech industry regulations.

Political vulnerability

Higher utility bills are a major issue heading into the November elections. Trump argues that data centers should not increase electricity costs. He also blames President Joe Biden for rising utility bills.

Trump’s policy aims to make big users pay more. He believes AI infrastructure should bear the costs. This approach is simple but contentious.

Grid flashpoint

PJM Interconnection manages electricity for over 67 million people in the eastern U.S. In the Mid-Atlantic and Midwest, planners warn of tight reserve margins without new investment. Data centers are expanding, driving demand.

A proposal would allow data centers to bid in an emergency auction for 15-year contracts. This could add $15 billion in capacity if PJM participates. The plan has been widely discussed, including in coverage of the PJM auction proposal.

Process controversy

PJM’s market rules are already contentious. The politics around them are getting louder. Governors have expressed concerns about PJM’s governance, pricing, and accountability.

State leaders are exploring new approaches. New York’s Energize NY Development initiative aims to make data centers generate their own power or pay more. Florida’s Gov. Ron DeSantis has criticized federal AI laws, citing concerns about data center impacts on power and water.

• PJM’s role makes auction design a practical pressure point, not just a campaign line.
• Rising demand from AI keeps tech industry regulations in the spotlight at both state and federal levels.
• The fight over who pays—ratepayers or data center owners—sits at the heart of the Trump administration’s tech policy.

Trump Wants Big Tech to Pay More: Conclusion

President Trump wants tech companies to make long-term deals for power. He wants them to use an “emergency wholesale electricity auction.” This is to add new power fast, aiming for over $15 billion in projects.

Supporters see this as a way to shift costs from homes to big users. Supporters refer to this initiative as President Trump’s tech taxes.

The issue is urgent because AI data centers are growing fast. But the grid’s capacity is not keeping up, mainly in PJM Interconnection. This has led to higher bills for many.

Trump believes Americans shouldn’t have to pay for this. But figuring out who pays is tricky because contracts are private.

Many questions are left unanswered. Will the “landmark agreement” become a real policy? How will PJM follow it, even though they said they wouldn’t?

Trump also wants a national AI standard. This could clash with state rules, as reported by a “One Rulebook” approach.

Big Tech might not go along with Trump’s plan. Microsoft wants the industry to cover all costs. They support new power, like solar, as reported in their reporting on paying their way.

Other companies are looking into nuclear and new transmission lines. Whether this helps or not will affect what you pay next time.