Elections and Energy Prices: The Battle over AI's Power Demand

The White House and bipartisan governors are urging the mid-Atlantic power grid operator to increase energy supply to mitigate AI-related price surges. Aimed at preventing voter discontent ahead of elections, the plan includes a power auction for tech firms to build new plants. Energy costs remain a contentious issue.

The White House, alongside a bipartisan assembly of governors, is pushing the mid-Atlantic power grid operator to increase energy supplies and address escalating prices due to artificial intelligence demands. The initiative seeks to counter growing voter discontent over high energy costs ahead of pivotal elections later this year.

The National Energy Dominance Council, backed by governors from Pennsylvania, Ohio, and Virginia, plans to pressure PJM Interconnection to hold a power auction for tech firms. This move could see new power plants emerge, driven by lucrative contracts. The Trump administration and the governors are set to sign a statement on this strategy soon.

Despite PJM's absence from the meeting, the need to protect consumers from the financial burden of AI data centers is urgent. Rate hikes stretch across 13 states from New Jersey to Illinois, with no corresponding increase in plant construction. Upcoming elections may pivot on these energy debates, especially in tech-heavy regions like Virginia and New Jersey.