The Trump administration is pushing for the largest electricity grid, PJM Interconnection, to add $15 billion worth of new power generation capacity, with a proposal that tech companies should bear the financial burden, even if they don't require the additional power. The White House and governors from several states within the PJM region are advocating for PJM to conduct an auction for 15-year contracts dedicated to new generating capacity.

The administration's proposal specifically targets tech companies, suggesting they bid on these contracts regardless of their immediate power needs for data centers. This initiative comes as demand from data centers is projected to nearly triple over the next decade, placing increased strain on existing power infrastructure. PJM Interconnection serves more than 65 million people across 13 states in the Mid-Atlantic and Midwest.

PJM Interconnection, responsible for managing the electricity grid across a wide swath of the eastern United States, stated that it is currently reviewing the administration's statement of principles. The grid operator also indicated it would soon release the results of a planning process, conducted over several months, focused on augmenting the grid's capacity.

However, the administration's approach appears to be facing resistance. While the statement of principles is non-binding, there are indications that PJM is not receptive to external pressure. "We don’t have a lot to say on this," PJM spokesman Jeffrey Shields told Bloomberg. "We were not invited to the event they are apparently having tomorrow and we will not be there."

The proposal raises questions about the long-term impact on the energy market and the potential financial implications for tech companies. The forced investment in power generation, regardless of immediate need, could lead to stranded assets and increased electricity costs for consumers. Conversely, proponents argue that it would ensure grid reliability and cater to the anticipated surge in data center energy consumption.

The outcome of this initiative remains uncertain, pending PJM's assessment and potential negotiations between the administration, state governments, and industry stakeholders. The results of PJM's internal planning process will likely play a crucial role in shaping the future of power generation and distribution within the region.