White House Pledge: AI Data Centers Agree To Fund Their Own Power, Not Ratepayers
The White House has expanded its Ratepayer Protection Pledge, requiring AI data centers and developers to fund their own power generation and grid upgrades to prevent costs from being shifted to residential customers. This voluntary initiative now covers approximately 80% of U.S. electricity delivered. Texas has also implemented parallel state-level directives to ensure data centers cover their infrastructure costs.
The White House announced the expansion of its voluntary Ratepayer Protection Pledge, which now covers roughly 80% of the electricity delivered to American homes and businesses. This initiative, championed by President Donald Trump, mandates that artificial intelligence and data center developers, technology companies, and utilities pay the full costs of new power generation and grid upgrades necessitated by their operations, rather than burdening residential and small business customers.
First introduced in March 2026, the pledge has garnered over 200 signatories, including major hyperscalers, AI companies, more than 150 utilities and cooperatives, dozens of data center developers, and 23 governors. The White House confirmed its expanded reach via a July 23 post on X, emphasizing its role in protecting consumers.
Texas has been particularly active, with several major utilities and cooperatives, including AEP Texas, CenterPoint Energy, El Paso Electric, Southwestern Electric Power Company, and United Cooperative Services, signing the federal pledge. Additionally, Governor Greg Abbott issued a state-level directive in June 2026, instructing the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to require data centers to fully fund their electric infrastructure costs and to identify further protections for residential ratepayers.
This combined federal and state approach aims to mitigate the cost shifts associated with the rapid growth of data centers, especially in Texas, which has attracted significant interest from tech firms seeking substantial power capacity. The White House frames the pledge as a non-binding public commitment to support American leadership in AI and data infrastructure while safeguarding household electricity affordability.