Trump introduces a fresh guideline for major tech companies developing AI: Supply your own

Trump Introduces New Energy Guidelines for AI Data Centers

During his State of the Union address on Tuesday, President Trump announced updated requirements for major technology companies developing artificial intelligence: they must supply and finance their own electricity for data centers.

With the introduction of a "ratepayer protection pledge," companies operating energy-intensive AI data centers will now be responsible for covering their own power consumption, Trump explained.

“Our current electrical grid is outdated and cannot support the massive energy demands of these facilities,” Trump stated. “Therefore, I’m directing these companies to construct their own power plants and generate the electricity they need independently.”

While specifics of the agreement are still emerging, Energy Secretary Chris Wright confirmed after the address that all major hyperscale tech firms have agreed to the plan, according to Politico. This group likely includes Alphabet (GOOG), Meta (META), and Amazon (AMZN).

This policy shift comes amid a surge in domestic energy demand and rising electricity costs.

Research from the Lawrence Berkeley National Laboratory indicates that electricity usage by U.S. data centers doubled between 2018 and 2024 and may triple by 2028. Government data shows the average retail electricity price reached 17.24 cents per kilowatt-hour in December, about 6% higher than the previous year.

A rapid increase in AI infrastructure needs is driving a boom in data center construction both in the U.S. and worldwide. (Photo by Mario Tama/Getty Images)

Rising Costs and Industry Commitments

Managing the energy needs of data centers has been a recurring challenge for Trump. Despite campaign promises to reduce electricity bills by 50%, costs have climbed during his second term, largely due to the expansion of the AI sector.

Trump noted that Americans are worried “that energy consumption from AI data centers could push their utility bills higher.”

In the PJM Interconnection region—the nation’s largest grid operator—capacity prices, which utilities pay to electricity generators, have soared from $28.92 per megawatt-day in 2024-2025 to $329.17 for the 2026-2027 period.

Many leading AI companies have already pledged to cover their own energy expenses. In January, Microsoft announced it would pay utility rates sufficient to fully offset its data center energy use and replenish more water than its U.S. facilities consume. OpenAI also committed to funding its own energy needs to avoid raising consumer electricity prices.

In February, Anthropic (ANTH.PVT) announced it would pay for all necessary grid upgrades to connect its data centers, with costs reflected in higher monthly electricity charges.

Policy Response and Legislative Pushback

The rapid expansion of data centers has sparked legislative efforts in several states, with at least six considering temporary bans on new data center construction due to concerns over rising electricity bills.

The White House’s "ratepayer protection pledge" is intended to address these concerns.

With these new requirements, Trump asserted, “Electricity prices will not increase, and in many cases, communities may even see lower energy costs.”

A federally funded study released in December found that adding new customers like tech companies to the grid can reduce prices if there is surplus capacity.

The administration is also urging PJM Interconnection to conduct an emergency auction, allowing tech firms to secure long-term power contracts to help stabilize costs.

“This pledge will guarantee companies have access to electricity while also potentially lowering rates for residents and businesses across cities and towns,” Trump said. “Expect positive changes in the coming years.”

About the Author

Jake Conley reports on breaking news and U.S. equities for Yahoo Finance.