How the White House and governors want to fix AI-driven power shortages and price spikes
How the White House and governors want to fix AI-driven power shortages and price spikes
https://abcnews.go.com/US/wireStory/white-house-governors-fix-ai-driven-power-shortages-129268663
Publish Date: 2026-01-16 11:29:00
Source Domain: abcnews.go.com
Certainly! Below are the key summary points from the article regarding efforts by the White House and bipartisan governors aiming to address energy supply and price increases related to data centers:
– The White House and a bipartisan coalition of governors from various states (including Pennsylvania, Ohio, and Virginia) are urging PJM Interconnection, the operator of the mid-Atlantic power grid, to take immediate measures to enhance energy supply and manage price hikes.
– These officials are convening an event on Friday to address increasing voter concerns about the significant power consumption for artificial intelligence, especially as midterm elections approach.
– The group aims to compel PJM Interconnection to hold a power auction where tech companies can bid for contracts to construct new power plants.
– A statement of principles will be signed by the administration and certain governors, as first reported by Bloomberg.
– The emphasis is on ensuring reliable and affordable electricity, a top priority for President Trump, in order to provide long-term relief to the mid-Atlantic region.
– Pennsylvania Gov. Josh Shapiro is expected to attend the White House event, with a focus on extending limits on wholesale electricity price increases for consumers.
– PJM Interconnection, however, will not attend the event as they were not invited.
– There is mounting pressure to shield consumers and businesses from the high costs incurred from powering data centers for Big Tech. Ratepayers in the mid-Atlantic grid region are already facing higher bills, which some argue has not led to the construction of necessary new power plants.
– Electricity cost issues could play a pivotal role in upcoming pivotal elections, mirroring contentious debates from the previous year’s gubernatorial races in New Jersey, Virginia, and Georgia.
– Rate increases for gas and electric utilities were significant in the first half of 2025, almost doubling from the same period last year, according to PowerLines, a consumer advocacy organization.
These points highlight the major issues and actions being undertaken within the region to deal with rising power demands and associated costs.
