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White House Presses PJM on AI Power Needs as States Move to Make Data Centers Pay

Independent studies warn of rising bills and environmental costs if demand outruns new generation.

Overview

  • Following calls from the White House and 13 governors, PJM proposed faster interconnections and a formula to curtail large users such as data centers during grid emergencies.
  • The administration urged a PJM auction for 15‑year contracts so tech companies finance new power plants and asked to extend a cap that restrains certain wholesale payments.
  • State lawmakers advanced divergent measures: a Florida committee approved tariffs to make large loads cover their costs, Wisconsin’s Assembly passed a bill requiring grid-upgrade payments and water reporting, and Colorado unveiled competing incentive and guardrail bills.
  • Tech companies announced community-focused commitments, with Microsoft pledging to prevent local bill increases, Amazon saying it will fund its own power needs, and OpenAI launching a Stargate Community plan to pay for infrastructure and coordinate transparently with regulators.
  • Analysts flagged a widening supply gap, citing PJM’s forecast of more than 5 GW of new annual load through 2030, a Union of Concerned Scientists study warning of higher costs without more clean energy, and industry expectations of increased onsite generation and a Texas buildout.