White House to rally utilities, data centers over AI power costs
The White House plans to host an event for utility companies and data center developers to sign a voluntary pledge. This initiative aims to ensure the increasing electricity demand from AI data centers does not lead to higher power bills for consumers. It follows a prior commitment by major tech companies to fund their AI-related electricity infrastructure costs.
The White House is preparing to convene utility companies and data center developers to endorse a voluntary pledge, according to sources familiar with the plan. This initiative is designed to mitigate the impact of the rapid increase in electricity demand from artificial intelligence (AI) infrastructure on household and business power bills.
This upcoming event expands on a previous White House ceremony where tech giants, including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI, signed a "Ratepayer Protection Pledge." That commitment required companies to finance the electricity infrastructure for their AI projects, including new power generation and grid upgrades, rather than passing these costs to existing utility customers. Surging demand from power-hungry data centers has raised concerns among regulators and lawmakers that consumers might end up subsidizing grid improvements.
President Donald Trump's administration is pushing for accelerated AI infrastructure expansion while aiming to prevent a political backlash over potential electricity bill increases. The new event is expected to involve electric utilities, data center operators, and state governors, reinforcing the administration's stance that the U.S. can lead in AI while maintaining affordable energy costs for voters.