Episode summary
Trump Wants Tech Giants to Pay for Power. They’d Love To. | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 30 min · Hosts: Carol Massar, Tim Stenovec · Guests: Michael Shepard, Lesley Marks, Maja Vujinovic, David George
Summary
President Trump and northeastern governors are pushing an emergency wholesale electricity auction that would make tech companies help finance new power plants for AI data centers. Bloomberg’s Michael Shepard said the plan is aimed at PJM Interconnection, which runs the grid across roughly a dozen states, and that the tech firms are already asking for more power and longer-term price certainty. He argued the real issue is that demand from data centers is rising faster than generation, and that the auction would lock in a price over 15 years while giving the buyers a stable supply.
The market reacted unevenly: utility names sold off, while other power-related stocks moved on expectations that more generation spending could benefit turbine and equipment makers. Shepard said the plan would not bring immediate relief to consumers because new infrastructure will take years. Later, Leslie Mark of Mackenzie Investments said the bigger market story is still earnings, AI-driven productivity, and broadening leadership beyond US mega-cap tech, with Canada, Europe, and emerging markets offering more attractive opportunities as tech capital intensity rises.
The episode also covered crypto regulation and bank earnings. A guest from FG Nexus said stablecoin and tokenization rules need clarity, and that Ethereum remains her preferred exposure because most stablecoins and DeFi activity are built there. On financials, David George said PNC and First Horizon both reported solid quarters, while he viewed Trump’s proposed 10% credit-card-rate cap as unlikely to pass and more harmful to credit availability than helpful.
Key takeaways
- Michael Shepard said the power-auction proposal is really about forcing tech firms to fund new generation for AI data centers, especially in PJM territory.
- Shepard argued the auction would give tech buyers 15-year price certainty, but it would not relieve consumer electricity bills quickly because new plants take years to build.
- Leslie Mark said markets are being driven more by earnings, monetary and fiscal policy, and AI productivity than by geopolitics.
- Mark expects leadership to broaden beyond US tech, with stronger earnings growth coming from emerging markets first and Canada second in 2026.
- David George said PNC and First Horizon both posted solid quarters, while he sees Trump’s proposed 10% credit-card-rate cap as unlikely to happen.
Notable quotes
“The idea is to force these tech companies to pay uh more for the data for the energy that their data centers will need”
“the tech companies get a stable source of energy. So, if they see some peaks, uh, they'll still be paying that same price”
“the prospect for greater earnings and that does tend to be the most important driver for medium to long-term performance”
“As that shifts, those multiples will come down and that again increases the thesis around broadening out across markets”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens.
The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenbec on Bloomberg Radio. You've probably heard about this. President Trump and the governors of several US nor these northeastern states agreeing to push for an emergency wholesale electricity auction that would compel technology companies to effectively fund new power plants.
This is about the power grab that we are seeing and we've often talked about how we're all paying higher prices because there is so much demand for energy right now.
Yeah, we're seeing this move markets. I'm just pulling up the S&P 500 and the top decliners in the S&P 500 are energy companies. Constellation down 11%, Vistra down 7.8%.
It's an unprecedented plan. Uh it seeks to address those growing tensions without simultaneously hiking utility bills for homes and businesses. I want to bring in uh senior editor for technology and strategic industries for Bloomberg News, Michael Shepard.
He joins us from Washington, DC. Uh this news breaking late yesterday. We're seeing the market reaction today.
the president at the White House uh with uh some of these executives for and with the governor of of uh Pennsylvania earlier today. Mike, what exactly is going on here? What is the plan here?
Well, the plan is and and Carol gave a a quick snapshot of it. The idea is to force these tech companies to pay uh more for the data for the energy that their data centers will need. Now force is a big word here because the data center companies have also been asking for this for quite some time.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai data centers power auctions
- tech capex and electricity demand
- grid power contracts and nuclear expansion
- cryptocurrency volatility
- bank earnings outlook
Companies and tickers mentioned
- AMZN
- MSFT
- GOOGL
- GOOG
- META
- Amazon.com
- Microsoft
- Alphabet
- Meta Platforms
- OpenAI
- Mackenzie Investments
- FG Nexus
- Baird
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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