Officials say new policies could require technology companies to absorb electricity, water and grid resiliency costs as power prices climb nationwide.
By yourNEWS Media Newsroom
The Trump administration is developing a policy framework that could require major technology companies building artificial intelligence data centers to fully absorb the electricity, water and infrastructure costs tied to their operations, as U.S. consumers face rising utility bills.
According to a report by CNBC, Peter Navarro, President Donald Trump’s senior trade and manufacturing adviser, said Sunday that the White House is evaluating measures that would prevent the costs associated with large-scale data center expansion from being passed on to ratepayers.
Appearing on Fox News’ Sunday Morning Futures, Navarro said companies constructing data centers must internalize the full financial impact of their operations.
“All of these data center builders, Meta on down, need to pay for all, all of the costs,” Navarro said. “They need to pay, not only pay for the electricity that they’re using on the grid, but they have to pay for the resiliency that they’re affecting as well. They need to pay for the water.”
The administration’s review comes amid a reported 6.9 percent year-over-year increase in electricity prices in 2025, with continued pressure on regional grids where AI-related infrastructure has rapidly expanded.
In response to Navarro’s remarks, a spokesperson for Meta said the company already bears its own energy expenses.
“Meta pays the full costs for energy used by our data centers so they aren’t passed onto consumers — and we go beyond that by paying for new and upgraded local infrastructure as well as adding new power to the grid,” the spokesperson said.
Federal officials have previously taken steps aimed at addressing grid strain in regions with heavy data center concentration. In January, multiple states joined the administration in urging PJM Interconnection — the nation’s largest grid operator — to require large technology firms to help finance new generation capacity. PJM oversees power distribution in areas including northern Virginia and New Jersey, both major hubs for data center development.
The agreement called for $15 billion in new power generation within the PJM network, funded by technology companies, and asked for an emergency auction to secure additional electricity supply. The move comes as the administration continues to oppose offshore wind initiatives in the Northeast, including projects that have already secured permits or entered construction phases.
Energy Secretary Chris Wright underscored the urgency following the January announcement.
“Perhaps no region in America is more at risk than in PJM. That’s why President Trump asked governors across the Mid-Atlantic to come together and call upon PJM to allow America to build big reliable power plants again,” Wright said.
President Trump also addressed the issue on Truth Social, stating that technology companies expanding AI operations must not shift financial burdens onto consumers. He said his administration is working with major firms to secure commitments that protect American households and indicated further announcements are expected in the coming weeks.
According to Trump, companies drawing heavily from the national power grid must “pay their own way.” He highlighted Microsoft as the first company to begin implementing changes, saying the administration has worked closely with the software company and that adjustments would begin this week to ensure consumer utility bills are not impacted by corporate power usage.
The developing policy marks one of the administration’s most direct responses to concerns that the rapid expansion of AI infrastructure could accelerate electricity price increases for households and businesses.
Read more at CNBC here.
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