Trump Takes Aim at AI Data Centers Over Rising Energy Costs, Shares His Pledge To Protect Customers

Data centers didn't escape the conversation at the State of the Union on Tuesday night. President Donald Trump addressed the influx of AI data centers being built across the U.S.

"Many Americans are also concerned that energy demand from AI data centers could unfairly drive up their electric utility bills," Trump said in the speech.

Currently, there are more than 4,000 data centers throughout the country with Virginia and Texas leading the way with at least 570 and 408 data centers, respectively.

The president said he has negotiated a new ratepayer protection pledge.

"You know what that is? We’re telling the major tech companies that they have the obligation to provide for their own power needs," Trump said. "They can build their own power plants as part of their factory, so that no one’s prices will go up and in many cases, prices of electricity will go down for the community, and very substantially then."

Trump went on to explain that this "strategy" has never been used in the U.S.

"We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed," Trump explained. "So I’m telling them they can build their own plant, they’re going to produce their own electricity. It will ensure the company’s ability to get electricity, while at the same time lowering prices of electricity for you and could be very substantial. For all of these cities and towns, you’re going to see some good things happen over the next number of years."

Big Tech in action

Amazon said it's already ensuring that taxpayers aren't footing the bill for a new data center coming to Louisiana.

The tech giant will be building a $12 billion data center campus in the Shreveport area. The multisite investment will be across Caddo and Bossier parishes and is expected to create 540 jobs. Louisiana Economic Development estimates the project will result in an additional 1,700 indirect job opportunities in that Northwest region.

As part of this growth, Amazon said it's working with the local utility, Southwestern Electric Power Company (SWEPCO), to make sure the tech company pays 100% of the costs associated with the new data center campus in Louisiana.

This includes covering all expenses for new energy infrastructure and upgrades required to serve the data centers, moves that are expected to strengthen overall grid reliability for all SWEPCO customers.

Microsoft has also pledged to put the community first anywhere it plans to build a data center. The company has a "5-point plan" that is part of its Community-First AI Infrastructure initiative. The main promise Microsoft is making is to "pay our way to ensure our data centers don't increase your electricity prices."

Microsoft said it would do this by asking utilities and public commissions to set their rates "high enough to cover the electricity costs" for their data centers. This includes the costs of adding and using the electricity infrastructure needed for the data centers they're building and operating.

Data center debate

The U.S. Department of Energy recognizes the rising electricity demand driven by AI data center expansions. It cited the Electric Power Research Institute's research that found that data centers could grow to consume up to 9% of U.S. electricity generation annually by 2030—that's up 4% of total load from 2023.

These data centers can impact regional grids, placing a monetary burden on taxpayers in the area. The president's plan aims to take that burden off of Americans, but the other side of the aisle is not on board.

"A handshake agreement with Big Tech over data center costs isn't good enough," Sen. Mark Kelly (D-AZ) posted on X. "Americans need a guarantee that energy prices won't soar and communities have a say."

Sen. Chris Van Hollen (D-MD) wrote on X: "So, his plan is to just trust Big Tech to do the right thing? If he's serious, he should work with us to pass my Power for the People Act to make these protections LAW."

Rep. Mike Levin (D-CA) posted on X: "Trump's data center energy 'deal' isn't a deal at all. It's a pledge. We don't need words, we need law. That's why I introduced the SHIELD Act to protect the American people from having to foot the power bill for data centers."

The SHIELD Act, which Levin and Rep. Kathy Castor (D-FL) introduced in January, is aimed at protecting families and small businesses from rising electricity bills driven by the growth of data centers.

The lawmakers say under the SHIELD Act federal utility policy would be updated to make sure that massive electricity users, rather than everyday ratepayers, bear the costs of the grid infrastructure they require.

Right now, some individual states have their own SHIELD Act in place, but none at the federal level.