Home / Business and Economy / Tech Giants Face $15B Grid Bill Demands
Tech Giants Face $15B Grid Bill Demands
17 Jan
Summary
- US administration seeks $15 billion for new power generation contracts.
- Tech companies' data center demand is projected to triple soon.
- Renewables like solar and batteries offer faster deployment alternatives.
The current administration is proposing a significant investment of $15 billion to expand power generation capacity, seeking contributions from technology companies. This initiative stems from the anticipated surge in electricity demand, with data centers expected to nearly triple their consumption over the next ten years. Grid operator PJM, serving over 65 million people across 13 states, is reportedly reviewing the administration's "statement of principles" regarding new capacity auctions.
However, PJM has expressed a degree of detachment from the proposal, indicating they were not involved in upcoming discussions. This comes as electricity rates in the region have already seen a notable increase of 10% to 15% in 2025 compared to the previous year. PJM's peak load has risen by 10% in the last decade and is predicted to grow by an additional 6.5% in 2027, with AI-driven data centers cited as a major contributor.
The rising cost of natural gas, a primary fuel source for PJM, is also a significant factor in increased prices. Faced with the lengthy and costly process of building new fossil fuel power plants, many utilities are hesitant. Tech companies, in response, are increasingly favoring modular and rapidly deployable renewable energy solutions like solar and battery storage, which can be phased in and start delivering power within approximately 18 months.
