The administration of US President Trump has developed a plan to increase electricity generation for artificial intelligence data centers. Among the solutions is an emergency auction for tech giants to build their own power generation infrastructure. This is reported by Bloomberg, writes UNN.
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The emergency auction will be held as a result of an agreement between state governors, the Trump administration, and the US power grid operator, PJM Interconnection LLC. The auction will allow technology companies to bid on 15-year contracts for new power generation capacity.
This capacity is necessary for data centers that work for artificial intelligence programs such as ChatGPT, Grok, Gemini, etc. Data centers increase the demand for electricity, but power grid operators, like PJM, are slow to introduce new generation infrastructure due to its small quantity.
Also, the high demand for electricity from data centers of technology giants creates problems for other electricity consumers. In the US, there is weak control over electricity prices, so residential consumers have already started receiving bills with new electricity tariffs because they live near data centers in Pennsylvania and Virginia.
The Trump administration also hopes that technology giants will be able to secure the electricity they need. Construction contractors will also have more confidence in power generation projects, as contracts will be for 15 years.
"Energy cannot be separated from our economy. Reliable, affordable, and secure energy is key to reducing inflation," the Trump administration commented on the plan to reporters.