Trump Expands Plan to Keep AI Data Centers From Increasing Household Energy Bills
President Donald Trump announced an expanded voluntary pledge to prevent AI data center growth from increasing household energy bills, with nearly 200 additional stakeholders joining. Concurrently, the House Energy and Commerce Committee advanced the Ratepayer Protection Act, a bill mandating state utility commissions to ensure data centers cover their energy and grid infrastructure costs. This national initiative and proposed legislation address concerns about rising electricity demand from AI data centers.
President Donald Trump announced an expansion of his administration's voluntary Ratepayer Protection Pledge on July 23, aiming to prevent the surge in artificial intelligence data center construction from increasing household energy bills for American consumers. White House press secretary Karoline Leavitt stated that nearly 200 additional stakeholders have joined the pledge since March, significantly boosting participation to cover 80 percent of all power delivered to American homes and businesses.
The expanded pledge includes energy utilities, data center developers, public energy authorities, co-ops, and state governors. Speaking at the Environmental Protection Agency's headquarters alongside Administrator Lee Zeldin, President Trump emphasized that corporations building data centers should bear the costs of the new energy infrastructure required to power these facilities, rather than passing expenses onto consumers. The plan grants large tech companies the right to build their own power plants to meet their electric needs.
Inspired by this initiative, the House Energy and Commerce Committee's Subcommittee on Energy considered the Ratepayer Protection Act last month, which the full committee advanced by a 52–0 vote on July 21. If enacted, this federal legislation would mandate state public utility commissions to consider plans compelling data centers to pay for energy and grid infrastructure costs directly. House Committee on Energy and Commerce Chairman Brett Guthrie (R-Ky.) highlighted the bill's intent to ensure data centers "pay their own way."
The rapid growth of AI data centers has become a contentious issue, with a May congressional report indicating data centers consumed 4.4 percent of U.S. annual electricity in 2023, potentially tripling by 2028. Estimates from the Kansas Health Institute and BloombergNEF project this figure to exceed 10 percent by 2030 and 20 percent by 2035, respectively. Critics point to potential grid overload, increased household energy bills, and unremitting noise, while proponents, including the Trump administration, argue that robust data center development is crucial for U.S. competitiveness in the AI sector.