Trump Proposes Emergency Wholesale Power Auction to Fund AI Data Centers

U.S. President Donald Trump has proposed holding an emergency wholesale electricity auction aimed at shifting the cost of powering massive artificial intelligence data centers onto major technology companies operating across the United States.

Trump said the unprecedented surge in demand driven by AI technologies is placing extraordinary pressure on the nation’s power grids, requiring a new financing mechanism that expands generation capacity without burdening households with higher electricity bills. The proposal envisions long-term power contracts lasting up to 15 years, competitively auctioned to technology firms seeking guaranteed and predictable energy supplies.

Market estimates indicate that companies such as Amazon, Microsoft, Alphabet, Meta, and OpenAI are prepared to absorb higher energy costs, as their capital expenditures linked to rapid data center expansion now far exceed investments by traditional utility providers.

Data center developers largely rely on national power grids due to lower costs compared to private supply agreements, as well as the availability of operational reserves that ensure grid stability during peak demand and extreme weather conditions. At the same time, some technology firms have begun supporting the restart of nuclear plants or financing new facilities to secure long-term energy needs.

Industry reports project that electricity consumption by AI data centers could triple by 2035, intensifying efforts by technology companies to diversify energy sources and pursue long-term solutions both within and beyond existing grids.

Analysts say the proposed auction could offer a political off-ramp for tech companies facing growing criticism over their role in driving electricity demand and environmentally sensitive power generation projects, while providing local governments with a unified framework to manage rising energy needs.