President Trump to Expand Data Center Electricity Responsibility Plan
In Washington, President Trump is set to broaden a plan aimed at making data centers accountable for their own electricity usage, rather than passing on those costs to consumers.
During an announcement, he is expected to reveal that significant utilities and 23 governors have agreed to the Ratepayer Protection Pledge. This initiative mandates that data center developers cover utility bills as construction progresses nationwide.
To address criticism surrounding this matter, the White House has crafted the pledge.
Trump will be accompanied at the EPA by Energy Secretary Chris Wright, EPA Administrator Lee Zeldin, and several governors who initially signed the pledge.
The pledge was first introduced in March and had already garnered support from data center developers, major tech firms, and consumer cooperatives.
White House Press Secretary Taylor Rogers highlighted that, “President Trump is broadening the ratepayer protection pledge to governors, lawmakers, developers, and electric companies to ensure that all parties involved in data center construction bear the costs rather than passing them onto American families.”
Despite the president’s support, there remains significant opposition to building these centers in various states due to fears over rising electricity costs. A Gallup poll from May showed that roughly 70% of Americans are against the establishment of local AI data centers.
Data centers currently consume about 4.4% of the nation’s electricity, with projections suggesting this could climb to 12% by 2030. Concerns persist about whether the aging power grid can accommodate this increased demand, especially as some consumers are already facing higher utility bills.
According to the White House, the major tech and power companies that have endorsed the Ratepayer Protection Pledge account for around 80% of electricity consumption by both businesses and households in the U.S.
Recently, New York Governor Kathy Hochul issued an executive order temporarily halting the construction of large data centers for a year, prompting significant backlash.
Trump and numerous Republicans suggest that external influences, particularly from China, are contributing to this opposition. They fear that foreign governments may be attempting to hinder the U.S. AI sector and reduce its economic competitiveness.
Executives in the private sector have expressed concern that public discontent over data centers might lead to a relocation overseas.
Several well-known companies, such as Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon, have endorsed the presidential pledge, although it remains non-binding and has primarily been signed by Republican governors.
Governor Hochul’s order marks New York as the first state to suspend data center construction. She mentioned that this pause would allow the state to formulate regulations that better serve environmental goals and the power grid.
This also means that no centers will be built until after the upcoming gubernatorial election, where she is seeking re-election.
However, business leaders caution Hochul that she risks placing New York at a disadvantage, arguing that moving data centers to other states would result in lost job opportunities for New Yorkers.
