Benzinga·2026-01-16 08:09Core Insights - The Trump administration plans to propose an emergency auction for PJM Interconnection to allow tech giants to bid on 15-year contracts for new power plants, potentially leading to $15 billion in construction [1][2]. Group 1: Government and Regulatory Actions - The National Energy Dominance Council is expected to sign the directive at the White House, with several governors present [2]. - The proposed auction aims to address rising electricity costs and support the construction of new power plants across the PJM grid [1][2]. Group 2: Corporate Responses and Strategies - Microsoft has committed to measures to mitigate electricity costs for residents affected by its data centers, emphasizing a "community-first" approach [3]. - The company aims to create local employment opportunities and reduce water usage in its operations [3]. - Trump's pressure on tech companies is aimed at ensuring they contribute to the costs associated with their data centers, which are integral to the AI sector [4]. Group 3: Industry Trends and Challenges - The AI revolution is seen as capable of absorbing additional costs, with potential shifts in data center investments to states with lower costs and faster interconnections [5]. - Google has identified transmission barriers and connection wait times as significant challenges for data center expansion, despite announcing a $25 billion investment in data centers and AI infrastructure in the PJM grid [6].