WASHINGTON, Feb. 24 (GeokHub) — U.S. President Donald Trump announced Tuesday that his administration is requiring major technology companies to build their own power plants to support energy-hungry data centers, a move he says is designed to shield American consumers from rising electricity costs.
Speaking during his State of the Union address, Trump said the policy forms part of what he described as a “rate payer protection pledge,” aimed at preventing household energy bills from increasing as artificial intelligence infrastructure rapidly expands.
“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 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.”
Growing Strain on the U.S. Power Grid
The announcement comes amid mounting concerns that the explosive growth of AI-driven data centers is placing unprecedented strain on the aging U.S. electrical grid.
Trump acknowledged infrastructure limitations, stating, “We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed.”
Local opposition to new data center developments has intensified in several states, with residents and consumer groups blaming large-scale facilities for contributing to higher electricity rates.
The administration has not yet released detailed implementation guidelines or enforcement mechanisms. However, the White House is expected to host major technology firms in early March to formalize the initiative, according to sources familiar with the matter.
Energy and AI: A Political and Economic Balancing Act
The policy reflects a broader tension within the administration. While Trump has voiced strong support for advancing artificial intelligence to compete with China, the rapid expansion of AI infrastructure is emerging as a political vulnerability ahead of November’s midterm elections.
Grid operators are also adjusting. PJM Interconnection, the largest power grid operator in the United States, recently proposed that new large-scale energy users must either bring their own generation capacity online or reduce consumption during peak demand periods.
Some tech firms have already begun addressing the issue voluntarily. Companies such as Microsoft and Anthropic have announced initiatives aimed at minimizing the impact of data center expansion on consumer energy prices.
