Trump's Emergency Power Auction Plan Could Reshape US Energy Markets — and Bitcoin Mining Economics

President Donald Trump is preparing to unveil a proposed “emergency power auction”, a policy move that could significantly alter the trajectory of US electricity markets. While the initiative is largely framed around easing household energy costs and supporting AI-driven economic growth, its downstream effects may be felt acutely across the cryptocurrency mining sector — particularly Bitcoin miners already under pressure from rising power prices.

The proposal highlights a growing intersection between energy policy, artificial intelligence infrastructure, and Bitcoin mining economics as the US approaches the 2026 midterm elections.

What Is the Emergency Power Auction Trump Is Proposing?

According to reporting from Bloomberg, the Trump administration is working alongside several Northeastern US governors to push PJM Interconnection, the largest electricity grid operator in the United States, toward a new form of long-term power auction.

Rather than a binding mandate, the initiative is expected to begin as a “statement of principles”, endorsed by Trump’s National Energy Dominance Council and state leaders from Pennsylvania, Ohio, Virginia, and surrounding states.

Under the framework being discussed, major technology firms — particularly those operating large AI data centers — would bid for 15-year power contracts tied to the construction of new electricity generation facilities. Crucially, these companies would be required to finance the power plants regardless of whether they ultimately consume all of the electricity produced.

Estimates suggest the mechanism could unlock approximately $15 billion in new power generation investment, expanding supply across the PJM grid, which serves more than 67 million people from the Mid-Atlantic to the Midwest.

Why Rising Electricity Prices Triggered Federal Intervention

While President Trump has frequently pointed to declining oil and gasoline prices during his term, electricity markets have moved in the opposite direction.

US electricity demand has surged, driven largely by the rapid expansion of AI data centers, cloud computing infrastructure, and high-performance computing workloads. Northern Virginia — already the world’s largest data center hub — sits squarely within PJM’s footprint.

The cost impact on households has become politically sensitive. In September 2025, average US retail electricity prices climbed 7.4% year-over-year, reaching a record 18.07 cents per kilowatt-hour. Residential power prices rose even faster, increasing 10.5% between January and August 2025, one of the steepest jumps in over a decade.

Energy analysts warn that without intervention, AI-driven demand could further strain grids and intensify cost pressures. As The Kobeissi Letter noted, electricity markets face a structural imbalance if generation capacity fails to keep pace with technological growth.

AI Data Centers vs Bitcoin Miners: A Shifting Power Hierarchy

The most immediate collateral damage from rising electricity demand has been felt by Bitcoin miners, who historically relied on access to low-cost power to maintain profitability.

That advantage is eroding.

In Texas alone, large-scale power connection requests reached 226 gigawatts in 2025, with AI companies accounting for roughly 73% of new applications. Utilities increasingly prefer AI data centers over Bitcoin mining operations because AI workloads require uninterrupted, predictable power and are willing to pay higher rates.

As a result, Bitcoin miners are being priced out of long-term power contracts in several regions.

How Bitcoin Mining Companies Are Adapting to Power Market Pressure

Facing unfavorable electricity economics, major publicly listed miners have begun restructuring their business models.

• Galaxy Digital, CleanSpark, and IREN have explored hybrid strategies combining mining with infrastructure services.
• Bitfarms announced plans to convert its Washington State mining facility toward HPC and AI workloads, signaling a broader industry pivot.

Bitfarms CEO Ben Gagnon openly acknowledged that GPU-as-a-Service infrastructure could outperform Bitcoin mining in net operating income, providing a more stable cash-flow base as the company gradually winds down portions of its mining operations through 2026 and 2027.

This shift underscores a broader reality: power access, not hash rate, has become the dominant competitive variable.

Could Trump’s Power Auction Ultimately Benefit Bitcoin Miners?

In the near term, the emergency power auction does little to reverse existing contracts already secured by AI firms. However, the long-term implications may be more favorable for Bitcoin miners.

If the initiative succeeds in expanding generation capacity and easing supply constraints, electricity prices could stabilize or decline in key regions. For miners, lower power costs directly translate into improved margins and extended operational viability.

Cheaper electricity could also:

• Reduce forced pivots toward AI infrastructure
• Allow smaller or mid-sized miners to remain competitive
• Slow consolidation within the mining industry

That said, the policy’s effects would likely unfold over multiple years, not quarters. New power plants require long development timelines, regulatory approvals, and grid integration.

A Broader Signal: Energy Policy Is Becoming Tech Policy

Beyond Bitcoin, Trump’s proposed emergency power auction reflects a deeper shift in US governance. Energy markets are no longer viewed as neutral utilities but as strategic infrastructure underpinning AI leadership, digital finance, and industrial competitiveness.

Bitcoin miners now sit at the crossroads of this transformation — competing with trillion-dollar tech firms for the same electrons.

Whether miners ultimately benefit or fall further behind will depend on execution, regional dynamics, and how quickly new capacity comes online. What is clear is that energy access has become the defining constraint of the digital economy.