White House declares national emergency over foreign parts used in power grid
The Trump administration declared a national emergency over America's power grid, signing an executive order to prohibit foreign-made power equipment due to national security and cybersecurity concerns. This action is driven by increasing electricity demands, largely from artificial intelligence and data centers. The Energy Department will now develop formal rules to implement this directive.
President Donald Trump's administration declared a national emergency over America's power grid, issuing an executive order to potentially ban foreign-made power equipment from the country's aging energy infrastructure. The White House stated this measure is critical due to increasing electricity demands, fueled significantly by the rapid growth of artificial intelligence and data centers.
The executive order grants the Energy Department extensive new authority to block transactions involving foreign equipment from nations identified as national security threats. It also addresses equipment already in place, citing risks that foreign actors could exploit hidden vulnerabilities, including malware, to compromise the system. Energy Secretary Chris Wright emphasized the need for a faster-growing, more robust electricity grid to keep pace with AI development.
Although China was not explicitly named, the country is a major manufacturer of bulk-power system equipment, such as that used in high-voltage transmission lines and substations. Yuri Dvorkin, an engineering professor at Johns Hopkins University, described the action as "long overdue," noting a substantial gap between the supply and demand for grid technology in the U.S. He hopes the order will stimulate domestic manufacturing, especially given tech companies' willingness to pay high premiums for data center power. The Energy Department has 120 days to translate the executive order into formal regulations, providing clear guidelines for power companies regarding foreign vendors and equipment.