Trump Expands Pledge to Protect Consumers from Data Center Utility Costs
President Donald Trump expanded a voluntary pledge for governors and electricity companies to shield U.S. consumers from higher utility bills from data centers, amidst growing public concern over the energy demands of artificial intelligence. This national initiative follows state-level actions in New York and Florida and bipartisan efforts in Congress to address the costs of data center development.
President Donald Trump announced an expansion of a voluntary pledge, originally made in March with AI and tech companies, to now include governors and electricity companies. The updated commitment aims to protect U.S. consumers from potential utility bill increases stemming from the rapid expansion of AI data centers across the country. Trump made the announcement at the Environmental Protection Agency, urging executives and governors to promote data centers, emphasizing their potential for economic benefit to local communities while assuring a surplus of power would prevent rising electricity costs for families.
The initiative comes as the AI build-out sparks controversy, with voters concerned about competing for electricity, water, and land with tech companies, potentially leading to higher utility bills. An analysis by ICF suggests monthly utility bills could rise by 15% to 40% by 2030 due to increased electricity demand. Opposition to data centers has become a bipartisan issue, influencing political figures like Texas Gov. Greg Abbott, who signed the pledge alongside 22 other Republican governors. Democratic nominee for Texas governor, Gina Hinojosa, has criticized Abbott on the issue, highlighting the lack of regulation.
State-level actions underscore the growing concerns: New York Gov. Kathy Hochul, a Democrat, enacted a year-long ban on large server warehouse construction, while Florida Gov. Ron DeSantis, a Republican, signed a law preventing utilities from passing data center energy costs to residential and small-business customers. Dozens of other state legislatures and utility commissions are also implementing requirements for data centers to cover their electricity costs. Additionally, the House Energy and Commerce Committee approved a bipartisan bill requiring data centers to bear grid upgrade costs. Meanwhile, the White House has expressed dissatisfaction with PJM Interconnection, the largest grid operator, for failing to ensure adequate electricity supplies amid the AI boom.