Why a New Trump Plan Sparked Huge Moves for Power Stocks on Friday

AI power stocks were on the move Friday following reports President Trump intends to urge America’s largest electricity grid to make tech giants pay for new power plants. 

The Trump administration and a group of governors intend to urge PJM Interconnection, which coordinates electricity for part or all of 13 mid-Atlantic and Midwestern states, as well as Washington, D.C., to hold an emergency electricity auction in which tech giants will bid on 15-year electricity generation contracts, according to reports. The proceeds would go toward adding an estimated $15 billion worth of new power plants, according to a White House spokesperson.

GE Vernova (GEV) stock was among the top performers in the S&P 500 on Friday, rising 6.1%, on expectations the power plant buildout would be a boon to its gas turbine business.

On the other hand, shares of independent power providers Constellation Energy Corp. (CEG) and Vistra (VST), which have both struck deals with tech giants to power their data centers, fell 9.8% and 7.5%, respectively, leading decliners in the S&P 500.

Electricity bills have soared in the last year, especially in areas with a high concentration of data centers, like Virginia, which PJM services. AI’s electricity consumption and its effect on household expenses has become a hot button topic in the lead-up to this year’s midterm elections, in which affordability is expected to be a key issue. 

Investors in the tech giants whose data centers are squeezing grids appeared unfazed by the proposal on Friday.

Shares of Microsoft (MSFT) and Amazon (AMZN) finished the session slightly higher, while Meta and Alphabet (GOOG) ticked lower.