The surge in AI data centers has led to a significant increase in electricity costs, prompting President Donald Trump to propose a solution.
During his State of the Union address on Tuesday, Trump revealed a directive requiring data centers to establish their own power generation facilities.
He claimed to have “negotiated” a ratepayer protection agreement with leading tech companies, presenting it as an innovative approach to address Big Tech’s growing energy needs while shielding American consumers from rising electricity bills.
Trump stated, “They can create their own power plants alongside their facilities.”
Numerous data center locations are already in the process of constructing their own power plants. Initially, most of these facilities will rely on fossil fuels, despite the commitments of tech giants to clean energy.
A spokesperson from the White House confirmed that major tech companies would be joining President Trump next week to officially sign the Ratepayer Protection Pledge. This initiative mandates that these companies develop, acquire, or create a power supply for new AI data centers, ensuring that electricity costs for Americans remain stable as demand escalates.
Brad Smith, President and Vice Chair of Microsoft, expressed appreciation for the initiative, noting the importance of preventing data centers from driving up consumer electricity costs. Similarly, Anthropic stated that it would cover all electricity price hikes consumers face due to data centers, affirming their commitment to the Ratepayer Protection Pledge.
