Trump Touts 1,600 New Power Plants As AI Data Demand Strains ERCOT Grid

Trump pledges 1,600 new power plants to cut AI-driven energy costs as ERCOT warns that large-load requests, 73% from data centers, have surged to 226 GW.

President Donald Trump announced plans to bring 1,600 new power plants online over the next year, stating that electricity costs would decline as part of his economic agenda, according to a national address.

Trump cited his administration’s achievements over the past year in the year-end address, stating he inherited significant challenges from his predecessor. The president said he aims to address rapidly increasing costs linked to artificial intelligence through accelerated approval of new production projects.

“Within the next 12 months, we will have opened 1,600 new electrical generating plants, a record,” Trump stated. He added that electricity prices, along with the cost of other goods, are expected to decline significantly in the near future.

During the address, Trump presented charts showing declines in prices and wage growth under his administration, while attributing rising health insurance costs to Democratic policies. Democrats, led by Senate Minority Leader Chuck Schumer, prompted a 43-day government shutdown in October and November to push for an extension of pandemic-era insurance subsidies for 22 million Americans set to expire on December 31, according to the address. Trump’s approval ratings fell to first-term lows during the shutdown but have since seen a modest recovery.

Trump encouraged Americans to continue supporting his administration and to anticipate new economic initiatives planned for the coming year. “We’re poised for an economic boom the likes of which the world has never seen,” he stated.

The announcement comes as the Electric Reliability Council of Texas (ERCOT) faces a significant rise in energy demand from AI developers. ERCOT reported that large-load interconnection requests have surged to approximately 226 GW, up from 63 GW at the end of last year. Data center projects focused on AI-scale operations now represent about 73% of these requests, according to the council.

Trump framed the initiatives as part of his broader vision to strengthen the U.S. economy and energy sector, stating that the steps his administration is taking will ensure long-term stability, lower costs for consumers, and maintain America’s competitive edge in emerging technologies.