The Trump administration urged the largest grid operator in the US, PJM, to conduct a $15 billion, 15-year contract auction for new power generation projects and called on tech companies to participate in the bidding, even though their data centers currently do not require these capacities. This move comes as data center demand is expected to triple over the next decade, which will lead to a 10% to 15% increase in regional electricity prices by 2025. PJM is reviewing this non-binding proposal but has expressed reservations, noting that it was not consulted beforehand. Faced with soaring natural gas prices and AI-driven growth in electricity demand, tech companies are increasingly investing in deploying faster renewable energy sources, such as solar, to match their construction timelines and reduce risks.
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The Trump administration urged the largest grid operator in the US, PJM, to conduct a $15 billion, 15-year contract auction for new power generation projects and called on tech companies to participate in the bidding, even though their data centers currently do not require these capacities. This move comes as data center demand is expected to triple over the next decade, which will lead to a 10% to 15% increase in regional electricity prices by 2025. PJM is reviewing this non-binding proposal but has expressed reservations, noting that it was not consulted beforehand. Faced with soaring natural gas prices and AI-driven growth in electricity demand, tech companies are increasingly investing in deploying faster renewable energy sources, such as solar, to match their construction timelines and reduce risks.