AI data centres: Trump asks technology firms to build power generation to limit electricity costs

President Donald Trump met technology companies at the White House on Wednesday. The meeting focused on electricity costs linked to AI data centres. Trump promoted a "ratepayer protection pledge\" to limit bill rises. Trump said public worries needed attention. \"They need some PR help because people think that if a data centre goes in there, electricity prices are going to go up,\" Trump said.

Representative image

Trump added: \"Its not going to happen.\" The pledge came as affordability remained a major public concern. Many Americans worried AI growth could raise utility bills. Trump first mentioned the pledge during the State of the Union address last month. Trump gave few details at that time, leaving questions about how it worked.

AI data centres and electricity prices

Across the US, several communities pushed back against new data centres. Residents raised fears about higher power prices. Some also cited pollution and water use concerns. Political debates over electricity rates also shaped elections. Opposition to rising power prices helped Democratic wins last year. Those wins included races in Georgia, Virginia and New Jersey.

Trump tried to ease broader concern about artificial intelligence. Trump viewed AI as important for attracting foreign investment. Trump also linked AI to US economic and military strength. Still, it remained unclear if the pledge would protect households. Electricity prices rose 6.3 per cent over the past year. The figure came from the Labour Department’s consumer price index.

AI data centres and power generation plans

Trump said energy demand would triple by 2035, mainly due to AI. Trump argued the US must greatly expand power plant construction. Federal data showed changing investment trends. The Census Bureau reported power generation construction spending jumped in 2022. Spending then eased after peaking in October 2023, the agency said.

Trump also moved energy policy in other directions. Trump sought to cancel wind power projects. Trump also promoted coal as an energy source. Coal use contributes to climate change. The comments came as energy needs for data centres grew. Utilities and regulators faced pressure to add capacity while keeping costs stable.

AI data centres and company commitments

Companies joining the pledge included Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon. Under the pledge terms, the firms intended to build or buy new power sources. These sources would support data centres. The companies also planned to pay for infrastructure upgrades. They could also sell extra power to utilities for public use.

The pledge also allowed other steps tied to electricity rates. Companies could negotiate separate rate structures with public utilities. The firms also planned local hiring for data centre projects. The White House framed these steps as consumer protection. The approach aimed to reduce conflict between local communities and large data centre developments.

AI data centres and doubts about enforcement

Energy experts questioned whether the promises could slow price rises. Experts also doubted federal enforcement was possible. Trump said the pledge would force companies to produce their own electricity. However, experts said the deal likely lacked federal legal force. Electricity supply rules mostly sat with states. Systems also differed by region and market design.

Jill Tauber, vice president of litigation for climate and energy at Earthjustice, called for binding action. Tauber said unclear pledges were not enough without firm rules. \"Data centres are increasing costs and pollution for communities across the country,\" Tauber said in a statement. \"More than a pledge, we urgently need strong policies and protections to ensure that data centres pay their way, disclose and mitigate their impacts, and are powered by clean energy.\"

With inputs from PTI