Energy Secretary Wright Defends Data Centers: Microsoft, Google 'Want' To Pay To Fix Grid, 'Not The Cause' Of Rising Prices

U.S. Energy Secretary Chris Wright pushed back forcefully against claims that massive data centers are driving up American electricity bills, arguing instead that tech giants are eager to fund the grid upgrades necessary for the AI boom.

Big Tech As The ‘Solution’

Speaking on Fox Business, Wright defended a new Donald Trump administration plan to ensure companies like Microsoft Corp. (NASDAQ:MSFT) and Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google shoulder the costs of new power generation.

Wright directly addressed critics who blame the energy appetite of artificial intelligence (AI) for soaring costs. “The Democrats and others are saying data centers are the cause of rising electricity prices… They’re not,” Wright stated.

Instead, he positioned tech firms as a “key part of the solution.”

Wright emphasized that while these centers need “a tremendous amount of power,” the companies “very much want” to pay for necessary infrastructure upgrades themselves, rather than having those costs “socialized onto the backs of ordinary American ratepayers.”

The ‘Electricity Auction’ Plan

Wright's comments align with reports of a new administration directive involving PJM Interconnection, the largest U.S. grid operator.

The plan would establish an emergency auction requiring hyperscalers to bid on long-term contracts to fund billions in new power plants.

Wright referenced this directly, noting President Trump proposed an “electricity auction in which tech companies will be forced to cover the costs of new power plants.”

This mechanism aims to secure the reliable power Big Tech needs without punishing households.

Blaming Coal Closures, Not AI

The Secretary argued that current price hikes stem not from new AI demand, but from previous policies that constrained supply.

“The states that have rushed to close their coal plants have also had rapidly escalating electricity prices,” he said, labeling the focus on data centers a way for critics to “escape blame” for anti-fossil fuel policies.

To meet future demand, Wright also pointed to a rapid expansion of nuclear energy, promising that new small modular reactors would be operational by July 4.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock