Governors are backing the Trump administration’s push for a large-scale data auction.
President Donald Trump is pressing major companies to shoulder the rising electricity costs tied to the expansion of data centers, arguing that the industry should not shift the financial burden onto American consumers. The administration is proposing a large-scale data auction that would require tech giants to pay upfront for the power capacity they consume, an approach that has drawn support from a growing number of governors. The administration also asked the Pennsylvania-New Jersey-Maryland Interconnection (PJM), the largest electrical grid operator in the nation, to cover some costs on an individual basis.
Governors from northeastern states in particular say the surge in data center construction has outpaced infrastructure planning, forcing utilities to raise rates to unsustainable and unaffordable levels. Under the Trump administration’s proposal, companies bidding for large blocks of power would fund grid upgrades and long-term capacity themselves, a shift supporters argue would protect consumers while ensuring that rapid tech expansion does not damage energy markets. Throughout his term, President Trump has been a proponent of expanding investment into Artificial Intelligence while keeping infrastructure reasonable.
“Under President Trump’s leadership, the administration is leading an unprecedented bi-partisan effort urging PJM to fix the energy subtraction failures of the past, prevent price increases, and reduce the risk of blackouts,” a White House spokeswoman said. The push by the president comes after data from around the country noted rising utility costs. Additionally, frequently cited data shows heavy use of AI often increases the costs of electricity consumed.
The issue is especially prevalent with PJM, the regional grid operator that serves more than 65 million people across 13 states and Washington, DC. PJM has warned that soaring demand from data centers and AI infrastructure is driving up capacity costs and accelerating the need for new generation and transmission projects, expenses that are increasingly passed on to households and small businesses. A Johns Hopkins University watchdog cited the exploding price to secure power capacity, with $23 billion likely from data centers built in recent years alone.
Trump argues that technology companies must bear responsibility for the energy demands created by their rapid growth, warning that failure to act would leave consumers inadvertently subsidizing some of the world’s largest companies. Speaking to reporters on Thursday, he said the administration would not allow “unchecked expansion” of data centers to drive up household power bills, saying that regulatory reforms remain “on the table” if the industry resists the proposed auction framework.
Several governors from both parties have publicly backed the proposal, calling it a pragmatic response to the growing issue. They argue that requiring tech companies to pay for the power capacity they consume would ease pressure on regional grids, protect consumers from higher bills, and provide clearer use cases for future infrastructure investment. Trump plans to host several governors from northeastern states at the White House to discuss the matter, though a spokesperson from PJM noted the grid giant would not be in attendance. Among the participants is Pennsylvania Gov. Josh Shapiro, as well as leaders from New Jersey, Illinois and Washington, DC.
