Trump Administration Weighs New Costs for Data Centers Amid Rising Electricity Prices

As electricity prices continue to increase across the United States, the Trump administration is exploring policies that might require technology firms with data centers to cover all related utility and infrastructure expenses.

Peter Navarro, President Trump’s adviser on trade and manufacturing, announced on Sunday that the White House could enforce a rule mandating data center operators to internalize all operating costs. This consideration arises from concerns about the impact that artificial intelligence infrastructure could have on the power grid, coupled with the rising utility bills consumers are facing.

In an appearance on Fox News’ Sunday Morning Futures, Navarro stated that large technology companies would need to handle all costs associated with maintaining data centers. “All these data center builders, not just Meta, have to pay all costs,” he explained. “They must not only cover the power they’re drawing from the grid but also contribute to the resiliency expenses that affect them. They need to pay for the water, too.”

A spokesperson for Meta responded, asserting that the company already bears its energy expenses. “Meta pays the full cost of the energy used in our data centers so it’s not passed on to consumers,” the representative said, adding that the company also invests in enhancing local infrastructure and boosting the power grid.

This discussion about data center costs emerges as electricity prices are increasing significantly, with a reported rise of 6.9% year over year in 2025, and it doesn’t seem to be slowing down. Navarro attributed these increases to the previous administration, claiming, “I want to assure the public that we’re working on it, and we feel your pain. We understand the devastation that inflation has brought on you because of Joe Biden’s irresponsibility, but we’re ultimately addressing it with economic policies that grow wages faster than inflation, and that’s the key to affordability.”

The government has already initiated steps to tackle energy consumption by data centers. In January, several states partnered with the White House to sign an agreement requiring PJM Interconnection, the largest transmission operator in the U.S., to compel large technology firms to finance new power plants. PJM oversees the power grid in areas with many data centers, like Northern Virginia and New Jersey.

The agreement called for $15 billion in new generation capacity within the PJM network to be funded by tech companies. It also urged utilities to hold emergency auctions for additional power. This plan is in place despite the government’s opposition to offshore wind projects in the northeast, many of which are already permitted or under construction.

Energy Secretary Chris Wright highlighted the urgency of the matter after the January announcement, commenting, “Perhaps no region of the country is more at risk than PJM. That’s why President Trump is urging governors across the Mid-Atlantic to unite and provoke PJM into helping America revive large-scale, reliable power plant construction.”

Previously, Breitbart News reported that President Trump insisted that tech giants ought to “pay their own way” without raising energy costs for consumers.

In a post on Truth Social, Trump reaffirmed his administration’s commitment to shielding consumers from the economic strain of corporate tech growth. He noted his team is in talks with major U.S. technology firms to secure promises that prioritize the welfare of the American people, with additional updates anticipated shortly. Trump emphasized that companies which consume extensive power from the U.S. electricity grid “must pay their own costs.”

He specifically mentioned Microsoft as the first company to act, stating that discussions are ongoing with the software giant. Microsoft is reportedly set to implement significant changes to ensure Americans won’t face higher utility bills due to the company’s energy needs, according to the company’s president.

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