Nearly 200 additional utilities, developers, public authorities and state leaders have joined a voluntary White House initiative requiring technology companies to cover the energy infrastructure costs created by rapidly expanding artificial intelligence data centers.
By yourNEWS Media Newsroom
President Donald Trump announced a major expansion Thursday of a voluntary initiative designed to prevent the rapid construction of artificial intelligence data centers from driving up household electricity bills.
The Ratepayer Protection Pledge calls on technology companies and data center developers to pay for the new power plants, transmission equipment and other grid improvements needed to serve their facilities rather than shifting those expenses to residential and business customers. Trump first introduced the program in March with commitments from Amazon, Google, Microsoft, Meta, OpenAI, Oracle and xAI.
White House press secretary Karoline Leavitt said nearly 200 additional participants have joined since the program began. The new signatories include electric utilities, data center developers, public power authorities, cooperatives and state governors, significantly broadening the initiative’s reach.
“As a result, the pledge now covers 80 percent of all the power delivered to American homes and businesses,” Leavitt said.
Trump presented the expansion alongside Environmental Protection Agency Administrator Lee Zeldin at the EPA’s headquarters. He said companies creating unusually large demands on the electrical system should be responsible for financing the capacity required to meet those needs.
“We know that the data centers and AI are dramatically increasing the demand for electricity. It’s only fair that the cost of building the new infrastructure required to meet this demand should be borne by the corporations themselves, not by the American consumers and the American patriots, American citizens, and I think everybody agrees to it,” Trump said.
“Under this groundbreaking plan, America’s largest tech companies have formally committed to fund or build all energy infrastructure required to meet the demand they are placing on the grid. So they’re going to be funding all of those electric needs, and we’re giving them the right to build their own power plants.”
The pledge remains voluntary and legally nonbinding, but its expansion reflects growing concern over the strain large computing facilities could place on the nation’s electrical system. AI data centers require enormous quantities of power to operate servers, cooling systems and supporting equipment around the clock, often creating demand comparable to that of entire communities.
Congress is considering a separate proposal that would place similar expectations into federal law. The House Energy and Commerce Committee’s energy subcommittee began reviewing the Ratepayer Protection Act last month, and the full committee advanced the bill Tuesday by a unanimous 52-0 vote.
The legislation would require state public utility commissions to consider plans ensuring that data centers pay for the generation and grid investments needed to support their operations. Its purpose is to prevent utilities from recovering those costs through higher rates charged to households and other customers.
“The Ratepayer Protection Act will ensure that data centers pay their own way, instead of passing costs onto hardworking families,” House Energy and Commerce Committee Chairman Brett Guthrie, R-Ky., said.
The debate has intensified as data center electricity consumption grows at a pace rarely seen in other industries. The facilities accounted for approximately 4.4% of annual U.S. electricity use in 2023, and a congressional assessment issued in May warned that their share could double or triple by 2028.
A Kansas Health Institute estimate released this month projected a 133% increase by 2030, which would push data center consumption above 10% of all electricity used in the United States. BloombergNEF has forecast that the facilities could account for 20% of national power consumption by 2035.
Those projections have raised concerns among consumer advocates and communities where data centers are being developed. Critics argue that large facilities can overwhelm aging local grids, require expensive infrastructure upgrades and increase monthly utility bills for nearby residents when those costs are distributed across the broader customer base.
Communities have also complained about constant noise from industrial cooling systems and diesel generators used to provide backup power. In some locations, the mechanical humming and engine noise can continue throughout the day and night.
Supporters contend that the facilities are essential to maintaining America’s technological advantage over China. The Trump administration and major technology companies have argued that delays in building data centers and adding new energy capacity could restrict the growth of the domestic AI industry and allow foreign competitors to gain ground.
The expanded pledge attempts to address both concerns by accelerating construction while assigning the associated power costs to the companies generating the new demand. Participating firms may finance utility projects or construct their own generation facilities, reducing pressure on existing customers while giving developers greater control over their energy supply.
With participants now representing 80% of the electricity delivered to American homes and businesses, the administration is seeking to establish the pay-your-own-way model as the national standard for future data center development.
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