The Trump administration is pushing for a significant investment in new power generation, proposing that the largest electricity grid in the United States allocate $15 billion towards new energy projects. Electricity demand is climbing everywhere but particularly from the growing electricity-hungry data sector. This ambitious plan sets out their intentions to meet a projected three times growth of energy needs over the next ten years.
Grid operators are really feeling the squeeze, as they fight against increasing demand. Our first stop, the PJM Interconnection, serves 13 states and the District of Columbia. Over the last decade, its peak load has increased by 10%. Projections show this peak load could increase an additional 6.5% by 2027. That added energy demand has already caused a spike in electricity costs. In 2025, these rates increased by 10% to 15% from the year before.
Tim De Chant is a senior climate reporter at TechCrunch. He teaches in MIT’s Graduate Program in Science Writing, which has fed a powerful perspective on some of today’s most urgent energy topics. De Chant’s background in environmental science—culminating in a PhD from the University of California, Berkeley—equips him with a deep understanding of the complexities surrounding power generation and climate policy.
In his analysis, De Chant highlights that the government’s proposal arrives amid a backdrop of increasing energy demands that grid operators cannot meet with existing infrastructure.
“Building new fossil fuel power plants is a years-long proposition costing hundreds of millions of dollars,” he notes. This reality makes crystal clear the critical need for alternative energy. A large solar farm can be up and running in as little as 18 months and begin providing power well before final completion.
The pressure from data centers has been amplified as an increasing number of enterprises migrate to cloud-based services and digital operations. Our grid operators are in an incredible bind. They are doing their best to manage limited energy supply with the now surging demand that has erupted after more than a decade of dormancy.
PJM’s Jeffrey Shields, a spokesperson for one of the regional grid operators, weighed in on the issue. Under questioning he just admitted in this way, “We don’t have a lot to say on this.” His comment underscores the incredible uncertainty and complexity that new power generation projects now face in this difficult climate.
De Chant is a critical, irreplaceable voice at TechCrunch. In 2018, he was awarded a Knight Science Journalism Fellowship at MIT, sharpening his know-how in science communication and deepening his focus on environmental issues. His educational path started at St. Olaf College, where he received a BA in environmental studies, English and biology.
The Trump administration wants to double down with a $15 billion infrastructure investment. Stakeholders need to think about the impacts of fossil fuel investments and renewable energy solutions. This unprecedented pace of growth presents an urgent but exciting opportunity to deliver clean, cost-effective, reliable power generation for years to come.
