Nearly 200 utilities join Trump's pledge to shield consumers from AI data center electricity costs

Utility companies are promising to spare us from AI's energy bill

In the face of backlash to concerns the AI boom will increase consumer electricity bills, the largest utility companies and data center developers in the US are now promising to do something about it. The Wall Street Journal reports that nearly 200 organizations have signed President Donald Trump's "rate payer protection pledge" that's meant to safeguard consumers from footing the AI bill. Trump is expected to announce the new signatories on Thursday, which includes NextEra Energy, Duke Energy, Equinix, and Digital Realty, according to a list obtained by The WSJ. An unnamed White House official told the publication that those who have committed to the pledge now account for about 80 percent of all power delivered to homes and businesses across the US. The rate protection pledge was introduced in March, and includes several vague commitments for AI providers to front the costs of new infrastructure required to train and run generative AI models. It was signed by leaders from Google, Meta, Microsoft, Oracle, OpenAI, Amazon, and xAI upon announcement, with Trump saying during the event that tech companies "need some PR help" to quell backlash around data center projects and rising electricity rates. Now, energy companies have joined the effort to try and mitigate some of the ire, but the pledge has done little to soothe public and bipartisan concerns so far. Some data center projects have been downsized or blocked in response to the backlash, and the largest US electrical grid operator PJM is now expected to add $6.3 billion in additional costs for consumers across 13 states due to data center demand. Enforcing the pledge will be a challenge as energy prices are typically set by state regulators and electricity traders, not the federal government. The pledge is also voluntary and carries no penalty for non-compliance, making this little more than a pinky promise for consumers to have faith in.

Trump set to expand power cost pledge on data centers

July 22 (Reuters) - President Donald Trump is set to unveil on Thursday a pledge backed by governors, lawmakers, utilities and data center developers aimed at shielding households from electricity costs tied to the AI boom, as he pushes to make the United States the global leader in artificial intelligence. It extends Trump's original Ratepayer Protection Pledge from March to ensure the companies building and using data centers ⁠pay above and beyond normal rates so that costs are not passed on to average households. Trump will be joined by Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin, and several of the state governors who signed the original pledge, according to a White House official. Protecting electricity customers from data center demands is no easy task, however, as the country's patchwork system of regional electric grids is already under severe strain. Massive congestion on transmission lines, for example, surged 81% to $3.2 billion in 2025 in the PJM Interconnection, the largest regional electric grid that serves 67 million people. Last week, the latest annual power auction ⁠at PJM pushed up prices to record levels. On Thursday, energy regulator FERC will meet to discuss the precarious future of PJM in light of its ongoing supply and demand imbalance. "Today's electricity system forces almost everyone, from homeowners to hyperscale data centers, to depend on the same network," Travis Fisher, director of energy and environmental policy studies ⁠at the Cato Institute, a libertarian think tank, recently wrote. "That one-size-fits-all model increasingly does not serve either group well. Large customers may wait a decade or longer for service, while ordinary ratepayers worry that expanding the grid for ⁠massive new industrial loads will ultimately increase their own bills." Data center advocates say the industry's rapid expansion is driving long-overdue investments in America's electric grid and cite other factors driving up costs, including ⁠power-plant retirements and transmission constraints. The White House says the pledge, which is nonbinding, will now cover 80% of all the power delivered to U.S. homes and businesses. Reporting By Tim McLaughlin in Boston; Laila Kearney in New York and Jarrett Renshaw; editing by Timothy Gardner and Nia Williams Our Standards: The Thomson Reuters Trust Principles., opens new tab

200 US utility firms join Trump electricity pledge as data center electricity use expected to quadruple by 2035 -- but does the President's pledge have the teeth to regulate electricity pricing?

Companies pledge not to pass on cost of data center electricity usage while passing on the cost of data center electricity usage * US data center electricity usage is expected to quadruple by 2035 * There has been a surge in signups for Trump's Ratepayer Protection Act * Residential electricity rates have risen by 25% over the past four years US data centers are expected to use four times more electricity by 2035 than they currently use, bringing the total consumption to one fifth of the country's electricity production. In an attempt to quell the national dissatisfaction with AI and the data centers needed to support capacity, over 200 entities have joined President Trump's pledge to not pass on rising electricity costs to consumers. But Trump's pledge is entirely voluntary, and has little control over electricity pricing which is decided by state regulators and electricity buyers and sellers - and in some states with huge data center buildouts electricity pricing has already risen significantly. Electricity consumption set to quadruple A new report by BloombergNEF seen by TechCrunch predicts that global AI compute will rise to as much as 200 gigawatts over the next decade, with most of it concentrated in the US. Additionally, many already strained power grids across the US will struggle to handle new data center connections without huge infrastructure buildouts. Current infrastructure buildouts have seen the US government seize private property from landowners using eminent domain. The PJM Interconnection across Virginia and Illinois is expected to see 34% of its electricity go to data centers over the next decade. In the same timespan, Texas' ERCOT will have to divert 22% of its electricity to data centers. There is one caveat, however. The BloombergNEF report is likely a conservative estimate. Compared to a report released in December, BloombergNEF's new electricity usage estimates are 83% higher than the previous prediction. The strain caused by the buildout of AI data centers is even causing a rift between utility companies and grid operators. American Electric Power threatened to pull out of the PJM interconnection due to the supply-demand imbalance causing prices to rise by as much as 76% in the last year. Trump pledges to stop electricity price rises caused by big tech According to exclusive WSJ reporting, there has been a huge surge in signups to Trump's Ratepayer Protection Pledge, which is a voluntary commitment to not pass on the rise in electricity prices caused by AI data center buildouts to consumers. The pledge encourages private companies to "build, bring, or buy" new electricity sources. Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI were among the first to sign up back in March 2026, but since then the nation's biggest utilities and data centers developers have also joined the pledge, including NextEra Energy, Duke Energy, Equinix and Digital Realty. New commitments for the Ratepayer Protection Pledge are expected to be announced by Trump at an event by the Environmental Protection Agency, but Trump's track record on environmental protection has been less than stellar. New fossil fuel energy production facilities can now expedite their application process, and Trump's "drill, baby, drill" policy has significantly reduced funding and support for clean and renewable energy sources, which are far cheaper than their fossil fuel counterparts. Despite the pledge not to pass on the rising costs of electricity to consumers, there have already been significant consumer electricity price increases across the US. According to ElectricChoice statistics, average US residential electricity rates are up 7.4% year-over-year, with Ohio alone seeing a 19.4% increase in the same period. 13 US states have seen double digit increases in year-over-year electricity pricing, while only 5 states have seen pricing stay the same or decrease. In the past four years, residential electricity rates have risen by 25%, with grid modernization investments and record data center construction cited as two of the main reasons for the rapid growth in pricing. According to Cleanview, the US currently has 1,214 operating data centers with a further 1,714 planned or in construction. A bill that seeks to actually hold tech companies responsible for their contributions to the increase in consumer electricity prices has been introduced to congress, called the Ratepayer Protection Act. The bipatisan bill looks to introduce a "large load standard" requiring tech companies to bear the cost of the energy they use, alongside upgrades to the local grids they connect to. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

23 governors sign Trump's cost pledge for data centers, backbone of AI

WASHINGTON -- President Donald Trump is set to announce 23 governors have signed his pledge that seeks to protect households from absorbing utility costs tied to data centers, the sprawling and rapidly expanding facilities that power artificial intelligence across the country. The governors, all Republicans, are among nearly 200 stakeholders ‒ major utility companies, data center developers, public power and co-ops ‒ who have signed Trump's Ratepayer Protection Pledge. The pledge was first put forward by the White House in March. Trump, who has defended data centers as they face resistance in many communities, is expected to tout the growing coalition at a July 23 event at the Environmental Protection Agency headquarters. Four of the governors are scheduled to be there. Companies that sign pledge agree to "protect American consumers from price hikes due to data center energy and infrastructure requirements, and lower electricity costs for consumers in the long term." Although non-binding, the pledge includes an addendum for the governors committing them to "implement the principles established in the Ratepayer Protection Pledge, to the greatest extent possible in our respective positions." Who has and hasn't signed the pledge? Governors who signed the pledge include Republican Govs. Kay Ivey of Alabama, Brian Kemp of Georgia, Kim Reynolds of Iowa, Mike DeWine of Ohio, Greg Abbott of Texas, Bill Lee of Tennessee and Spencer Cox of Utah. Kemp, as well as Louisiana Gov. Jeff Landry, Nebraska Gov. Jim Pillen and Idaho Gov. Brad Little, are set to attend the event. No Democrats signed the document, and three of the nation's 26 Republican governors have not either: Vermont Gov. Phil Scott, New Hampshire Gov. Kelly Ayotte and Florida Gov. Ron DeSantis, who signed a new state law this year that implemented strict regulations for data centers. Data centers, which house computer networks and servers that enable digital information and services, are becoming increasingly vital for tech companies as technology expands, particularly in artificial intelligence. But residents in many communities have protested the construction of the centers, which take up enormous space, produce noise and bring few direct benefits to their neighborhoods. The facilities require considerable electricity, water, and other utilities that critics say spike costs for people who live near them. The support of the 23 governors builds on an effort that began with seven of the world's largest tech companies ‒ Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon ‒ signing the pledge in March. "President Trump is expanding the Ratepayer Protection Pledge to governors, legislators, developers, and power providers to ensure everyone involved in building and powering data centers covers their own costs instead of passing them on to American families," White House spokeswoman Taylor Rogers said in a statement. "The President's bold action is turning data centers into engines of growth for local communities, while cementing America's dominance in the global AI race." Trump hailed data centers as "big, strong, bold, and Money Machines" in a social media post last week, while calling it a "terrible decision" for New York Gov. Kathy Hochul, a Democrat, to sign an executive order issuing a one-year pause on the construction of data centers in her state. Trump said companies that operate data centers are sought by "red states" such as Alabama, Florida, and Texas. Yet recent fights over data centers have popped up in both Democratic- and Republican-leaning states, from Nashville to the Virginia suburbs outside Washington, DC, to rural Utah and small towns in New Jersey. Even Palm Beach, Florida, home of Trump's Mar-a-Lago resort, has fiercely debated a new artificial intelligence data center planned there. Trump has expressed concerns about states creating barriers slowing the advancement of AI technology as the United States competes with China for the lead globally in AI innovation. Reach Joey Garrison on X @joeygarrison .

Trump Expands a Voluntary Pledge to Protect Consumers From High Utility Bills From AI Data Centers

WASHINGTON (AP) -- President Donald Trump on Thursday will have governors and electricity companies join a voluntary pledge to shield U.S. consumers from higher utility bills from data centers -- a sign of how the artificial intelligence build- out has become a lightning rod of controversy before the midterm elections. The president first announced the pledge with leading AI and tech companies in March, but that initial commitment has done little to comfort voters who are already grappling with affordability issues as they worry about competing for electricity, water and land with tech companies controlled by billionaires. It's unclear, with electricity demand already growing, whether consumers would see genuine savings. Trump described the pledge several months ago as "PR help" at a time when the broader social contract is being rewritten by AI, a technology that is evolving so quickly in its capabilities that governments are struggling over how to provide insight. He plans to discuss the expansion of the pledge at the Environmental Protection Agency on Thursday. "The president is ensuring the American people are never left footing the bill so private companies can benefit," White House press secretary Karoline Leavitt told reporters before the president's remarks. The White House said that nearly 200 additional stakeholders, including utilities, data center developers and governors, have committed to the pledge. The pledge would cover 80% of all power delivered to U.S. households and businesses. A slowdown in data center construction could derail what has been one of the dominant drivers of U.S. economic growth, in addition to possibly ceding the U.S. edge in cultivating the technology to China and create national security risks. But AI's increasing ability to perform basic tasks -- such as driving, analyzing spreadsheets and writing software -- also potentially threatens millions of jobs. That has created mounting public resistance as tech companies concentrate historic levels of wealth in the hands of a select group of tycoons. The increased electricity demand could cause monthly utility bills to rise by 15% to 40% by 2030, according to a recent analysis by ICF, a consulting and technology services company. Opposition to data centers has spiraled into a bipartisan issue. Voters are worried about the environmental impact, use of AI in schools and the prospect of data centers making their communities more expensive and less livable. Data center companies say their facilities help to generate tax revenues for school districts and reduce property tax burdens for homeowners. The opposition has spread into the Republican stronghold of rural Texas and led to frustration with Gov. Greg Abbott, who is now among the 23 Republican governors who signed Trump's nonbinding pledge. Gina Hinojosa, the Democratic nominee for Texas governor, has been using the issue to challenge Abbott before the November election. "They are owned by the richest men in the world," she said of data centers. "We're all footing the bill. There are no rules. It is the Wild West of data centers." New York Gov. Kathy Hochul, a Democrat, signed an order to ban construction of large server warehouses in her state for a year. In May, Florida Gov. Ron DeSantis, a Republican, signed a law that he said would prevent utilities from passing along energy costs from data centers to residential and small-business customers. In an interview with The Associated Press last month, Nvidia CEO Jensen Huang, whose computer chips are enabling the AI revolution, said America's weakness is a lack of power generation for further developing the technology. Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon are among the companies that have already committed to the Trump administration's "Ratepayer Protection Pledge" that consumers will not shoulder the cost of the data center build-out.

Trump Is Expanding a Pledge That Could Stop AI Data Centers From Hiking Your Electricity Bill -- Here's Who

The expanded pledge is intended to ensure companies building and powering AI data centers cover the costs of the electricity generation and transmission infrastructure needed for their projects instead of passing those expenses on to residential customers. Under the initiative, participating companies also agree to negotiate their own electricity rate structures with utilities and state governments. "President Trump is expanding the Ratepayer Protection Pledge to governors, legislators, developers, and power providers to ensure everyone involved in building and powering data centers covers their own costs instead of passing them on to American families," White House spokeswoman Taylor Rogers said in a statement. Rogers said the initiative would help turn data centers into "engines of growth for local communities" while reinforcing U.S. leadership in the global AI race. President Donald Trump is expected to formally announce the expanded initiative Thursday alongside Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin and Louisiana Gov. Jeff Landry (R), Georgia Gov. Brian Kemp (R), Nebraska Gov. Jim Pillen (R) and Idaho Gov. Brad Little (R) Growing Demand Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Major utilities sign Trump pledge on AI electricity costs- WSJ By Investing.com

Investing.com -- Nearly 200 utilities and data center developers have committed to President Trump's pledge to prevent artificial intelligence energy use from raising consumer electricity bills, the Wall Street Journal reported on Tuesday, citing a White House list. NextEra Energy, Duke Energy, Equinix and Digital Realty are among the signatories to the pledge, which Trump plans to announce Thursday at an Environmental Protection Agency event. Republican governors Jeff Landry of Louisiana and Brian Kemp of Georgia also signed and are expected to attend. The commitments now cover about 80% of all power delivered to U.S. homes and businesses, the WSJ report said. The pledges may be difficult to enforce because state regulators and electricity buyers and sellers often determine power prices. The effort represents an attempt by the White House and private sector to address growing opposition to AI energy consumption, the WSJ reported. Concerns about rising electricity prices and resistance to new data centers have worried industry executives. Several U.S. states proposed legislation blocking the construction of more data centers, amid growing public opposition due to their impact on the environment and living standards. In March, technology executives from OpenAI, Amazon.com, Microsoft, Google, Meta Platforms, Oracle and Elon Musk's xAI, recently acquired by SpaceX, signed the pledge. Trump introduced the commitment in his State of the Union address earlier this year. Additional commitments include negotiating separate rate structures with utilities and states and coordinating with grid operators to prevent blackouts and power shortages. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Trump set to expand power cost pledge on data centers

July 22 (Reuters) - President Donald Trump is set to unveil on Thursday a pledge backed by governors, lawmakers, utilities and data center developers aimed at shielding households from electricity costs tied to the AI boom, as he pushes to make the United States the global leader in artificial intelligence. It extends Trump's original Ratepayer Protection Pledge from March to ensure the companies building and using data centers pay above and beyond normal rates so that costs are not passed on to average households. Trump will be joined by Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin, and several of the state governors who signed the original pledge, according to a White House official. Protecting electricity customers from data center demands is no easy task, however, as the country's patchwork system of regional electric grids is already under severe strain. Massive congestion on transmission lines, for example, surged 81% to $3.2 billion in 2025 in the PJM Interconnection, the largest regional electric grid that serves 67 million people. Last week, the latest annual power auction at PJM pushed up prices to record levels. On Thursday, energy regulator FERC will meet to discuss the precarious future of PJM in light of its ongoing supply and demand imbalance. "Today's electricity system forces almost everyone, from homeowners to hyperscale data centers, to depend on the same network," Travis Fisher, director of energy and environmental policy studies at the Cato Institute, a libertarian think tank, recently wrote. "That one-size-fits-all model increasingly does not serve either group well. Large customers may wait a decade or longer for service, while ordinary ratepayers worry that expanding the grid for massive new industrial loads will ultimately increase their own bills." Data center advocates say the industry's rapid expansion is driving long-overdue investments in America's electric grid and cite other factors driving up costs, including power-plant retirements and transmission constraints. The White House says the pledge, which is nonbinding, will now cover 80% of all the power delivered to U.S. homes and businesses. (Reporting By Tim McLaughlin in Boston; Laila Kearney in New York and Jarrett Renshaw; editing by Timothy Gardner and Nia Williams) By Tim McLaughlin, Laila Kearney and Jarrett Renshaw