Trump Wants Big Tech to Help Pay for New Power Plants

Intermediate | January 19, 2026

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What Trump Is Proposing: Tech Companies Fund Power Plants

The Trump administration is pushing a plan that would make tech companies fund power plants—or at least help pay for them—because America’s electricity demand is rising fast. The idea is tied to the growth of AI and data centers, which can use huge amounts of power.

According to WSJ, the White House wants the grid operator PJM Interconnection to run an emergency power auction. In simple terms: big electricity users (especially tech firms) would commit to long-term contracts that help pay for brand-new power plants.

Why This Is Happening Now

PJM runs the biggest power grid in the U.S., serving 13 states in the Mid-Atlantic and Midwest and reaching tens of millions of people (WSJ). But the grid is under pressure. Older plants are retiring, new ones aren’t coming online fast enough, and electricity prices have been rising.

At the same time, AI-focused data centers are expanding quickly—especially in regions served by PJM (AP). That growth has triggered a political argument: Who should pay for the new electricity supply—regular households, or the companies driving the demand?

How the “Emergency Auction” Would Work

Here’s the basic concept:

PJM would hold an auction to secure new electricity generation.
Tech companies (and other large power users) would bid on 15-year contracts.
Those contracts would support new power plant construction—reported to be around $15 billion worth of new supply (Bloomberg, WSJ).

In other words, instead of everyone’s electricity bill rising to cover new infrastructure, the plan tries to shift more of that cost onto the biggest power customers.

Why Tech Companies Might Not Hate This Idea

This sounds like a punishment at first—but there’s another angle.

Long-term power contracts can give data center builders something they love: predictability. If a company knows its electricity supply and pricing are stable for years, it’s easier to plan big projects. Some business voices have said the auction idea could bring “more certainty” to the market (Bloomberg).

So yes, tech companies fund power plants under this plan—but they may also get stronger guarantees that enough power will exist to keep their AI infrastructure running.

The Pushback: Legal, Political, and Practical Questions

The plan could face challenges (AP). Energy policy and grid rules get complicated fast, and critics say an auction like this may require new legal authority.

There’s also a bigger practical issue: even if everyone agrees today, building new power plants takes years. That means the plan may help long-term reliability, but it might not solve short-term grid stress quickly.

What English Learners Should Take Away

This story is a great example of a modern business conflict:

Tech companies want to grow fast.
The grid needs new infrastructure.
Voters don’t want higher bills.

The big question is simple: Should large power users pay more when they create new demand?

Vocabulary

Auction (noun) – a public sale where buyers bid and the highest offer wins.
Example: “The plan includes an emergency auction for long-term power contracts.”
Bid (verb) – to offer a price (or commitment) in an auction.
Example: “Tech companies would bid on 15-year contracts.”
Long-term contract (noun) – an agreement that lasts for many years.
Example: “A long-term contract can give businesses stable prices.”
Power grid (noun) – the network that delivers electricity from producers to customers.
Example: “PJM runs the largest power grid in the United States.”
Demand (noun) – the amount of something people want or need.
Example: “AI data centers are increasing electricity demand.”
Infrastructure (noun) – basic systems needed for a society to function (power, roads, water).
Example: “New infrastructure is needed to avoid shortages.”
Retire (verb) – to stop using something permanently (often used for power plants).
Example: “Older plants are retiring faster than new ones are being built.”
Shortage (noun) – when there isn’t enough of something.
Example: “Officials warn of an electricity shortage without new supply.”
Predictability (noun) – the ability to plan because outcomes are stable or known.
Example: “Companies want predictability in electricity pricing.”
Authority (noun) – legal power or permission to act.
Example: “Some critics say the plan needs new legal authority.”

Discussion Questions (About the Article)

What is the main goal of Trump’s plan for big electricity users?
Why is PJM under pressure right now?
How would a 15-year contract help build new power plants?
Why might tech companies prefer long-term power deals?
What challenges could stop or slow this plan?

Discussion Questions (About the Topic)

Should companies that use massive electricity pay higher rates than households? Why or why not?
What are the pros and cons of building more natural gas, nuclear, or coal plants?
How can countries expand AI infrastructure without hurting regular consumers?
What other solutions could reduce electricity demand besides building new plants?
In your country, who pays for new infrastructure—government, consumers, or companies?

Related Idiom

“Foot the bill” – to pay for something (often something expensive).

Example: “The plan is designed to make data center operators foot the bill for new power supply instead of households.”

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This article was inspired by: WSJ, AP, and Bloomberg.