Trump set to expand power cost pledge on data centers
President Donald Trump is poised to announce a national pledge, supported by governors and utilities, aimed at shielding households from electricity costs associated with the AI boom and data centers. This nonbinding initiative extends an earlier pledge to ensure data center companies bear higher electricity rates, covering 80% of US power delivery. The announcement comes as the US electric grids, particularly the PJM Interconnection, are experiencing significant strain and congestion.
President Donald Trump is scheduled to unveil a national pledge on Thursday, July 22, designed to protect households from increasing electricity costs driven by the artificial intelligence (AI) boom and the proliferation of data centers. The initiative also aims to establish the United States as a global leader in AI. Trump will be joined by Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin, and several state governors who previously signed a similar pledge.
The expanded pledge builds upon Trump's original Ratepayer Protection Pledge from March, requiring companies that build and operate data centers to pay above-normal electricity rates. This measure seeks to prevent these costs from being passed on to average households. The nonbinding pledge is expected to cover 80 percent of all power supplied to U.S. homes and businesses.
The announcement comes amid growing concerns about the strain on the nation's electricity infrastructure. The article highlights that the country's regional electric grids are already experiencing severe stress, citing a significant 81 percent surge in transmission line congestion costs to $3.2 billion in 2025 within the PJM Interconnection, which serves 67 million people. Energy regulator FERC is set to discuss the precarious future of PJM due to ongoing supply and demand imbalances. Travis Fisher, director of energy and environmental policy studies at the Cato Institute, noted that the current "one-size-fits-all" electricity system poorly serves both large customers and ordinary ratepayers, with the latter worrying about increased bills. Data center advocates, however, argue that the industry's rapid expansion is spurring much-needed investments in the American electric grid.