U.S. Energy Secretary Chris Wright has a message for anyone worried that artificial intelligence is about to make their electric bill skyrocket: relax. The data centers aren't the problem here, and the tech companies running them actually want to pay for the infrastructure upgrades needed to keep the lights on.

Tech Companies as Grid Saviors?

Speaking on Fox Business, Wright defended a new Trump administration plan designed to ensure companies like Microsoft Corp. (MSFT) and Alphabet Inc.'s Google (GOOG) (GOOGL) cover the costs of new power generation. He pushed back hard against the narrative that massive data centers are driving up American electricity bills.

"The Democrats and others are saying data centers are the cause of rising electricity prices... They're not," Wright stated. Instead, he positioned these tech firms as a "key part of the solution."

Wright acknowledged that data centers need "a tremendous amount of power" to fuel the AI boom. But here's the interesting part: these companies "very much want" to pay for necessary infrastructure upgrades themselves. The goal is preventing those costs from being "socialized onto the backs of ordinary American ratepayers."

How the Electricity Auction Would Work

Wright's defense aligns 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 mechanism directly, noting President Trump proposed an "electricity auction in which tech companies will be forced to cover the costs of new power plants." It's essentially a way to secure the reliable power Big Tech needs without punishing households who aren't training large language models in their basements.

The Real Culprit: Retired Coal Plants

According to Wright, current price hikes don't stem from new AI demand at all. Instead, he blames previous policies that constrained electricity supply.

"The states that have rushed to close their coal plants have also had rapidly escalating electricity prices," he argued. Wright characterized the focus on data centers as a convenient way for critics to "escape blame" for anti-fossil fuel policies that reduced available power generation.

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