White House, Governors Pressure Power Grid Operator Amid AI Energy Demand
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The white House and a bipartisan coalition of state governors are intensifying pressure on PJM Interconnection, the operator of the mid-Atlantic power grid, to rapidly increase energy supply and mitigate escalating electricity prices. This push comes as concerns mount over the substantial energy consumption of artificial intelligence (AI) data centers, a critical issue heading into the November elections.
the effort, spearheaded by the White House’s National Energy Dominance Council and governors from states including Pennsylvania, Ohio, and Virginia, aims to compel PJM to hold a power auction. This auction would allow tech companies to bid on contracts to finance the construction of new power plants, addressing the growing demand. A statement of principles outlining this plan is slated to be signed by the Trump administration and participating governors on Friday, as initially reported by Bloomberg.
“Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region,” stated Taylor Rogers, a White House spokeswoman.
Political Stakes and Consumer Concerns
Pennsylvania Governor Josh Shapiro is expected to attend the White House event,according to a source familiar with his plans. The source, speaking on the condition of anonymity, revealed that Shapiro, a Democrat, made his participation contingent on the inclusion of a provision to extend existing limits on wholesale electricity price increases for consumers in the region.
Though, PJM Interconnection will not be present at the discussions. “PJM was not invited. Thus we would not attend,” said spokesperson Jeff Shields.
The coordinated action reflects growing political pressure to shield both consumers and businesses from the rising costs associated with powering the energy-intensive data centers that support the AI boom. Concurrently, an increasing number of Americans are struggling to pay their electricity bills. Consumer advocates argue that residents within the mid-atlantic grid – encompassing all or parts of 13 states from New Jersey to Illinois, plus Washington, D.C. – are already absorbing billions of dollars in higher costs to supply power to these data centers, both existing and planned.
Demand Outpacing Supply
Despite the billions already being paid by consumers, advocates contend that these funds are not translating into the construction of sufficient new power plants to meet the escalating demand. In several areas, data centers are becoming operational at a faster rate then new power generation capacity can be brought online and connected to the grid.
The issue of electricity costs proved pivotal in recent elections,notably in New Jersey and Virginia – both major data center hubs – and in Georgia,where voters ousted two Republican incumbents on the state’s utility regulatory commission. Economic concerns were the top issue for voters in New Jersey, Virginia, California, and New York City as both Democrats and Republicans prepare for a contentious debate over affordability in the upcoming battle for control of Congress.
Data from the consumer advocacy association PowerLines reveals that gas and electric utilities sought or secured rate increases totaling over $34 billion during the first three quarters of 2025 – more than double the amount from the same period in 2024. This surge underscores the financial strain on households and businesses.
Pivotal contests in November will likely be influenced by communities grappling with rapidly increasing electric bills and the ongoing debate over who should bear the financial burden of powering the data centers driving the AI revolution.
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