Trump Administration Pushes Tech Firms to Sign AI Data Center Compact on Grid Costs

US wants firms to commit to new AI data center compact, Politico reports

Feb 9 (Reuters) - President Donald Trump's administration wants technology companies to commit to a new compact concerning AI data centers, Politico reported on Monday, citing two administration officials. The draft compact sets out commitments to make sure data centers do not raise household electricity prices, strain water supplies or undermine the energy grid, according to the report. It also lays out that companies driving demand should carry the cost of new infrastructure. Politico said the proposed agreement could be subject to change. Reporting by Costas Pitas; Editing by Caitlin Webber Our Standards: The Thomson Reuters Trust Principles., opens new tab

Trump Administration Seeks Public Pledge From Tech Firms To Limit Data Center Strain On Utilities: Report - Amazon.com (NASDAQ:AMZN), ProShares S&P 500 Dynamic Buffer ETF (BATS:FB)

The Trump administration is reportedly pushing the tech giants to publicly commit to a draft compact aimed at ensuring the rapid expansion of energy-intensive data centers does not drive up household electricity costs, strain water resources, or undermine grid reliability. The broad components of the agreement, according to a POLITICO report on Tuesday, are: Power Costs The compact requires AI data center developers to bear 100% cost of any new power generation their facilities need and to sign long-term electricity contracts to prevent costs from shifting to other customers if projects fall through. Companies would also agree to cover the full cost of any present or future transmission upgrades needed to connect new data centers to the grid. Additionally, the tech firms would commit to working with regulators to set power and transmission rates that protect, and ideally lower, residential electricity prices in areas where their data centers operate. All Encompassing Rules The principles would cover not only company-owned data centers but also leased or third-party-operated facilities to prevent firms from shifting impacts elsewhere. Community Programme And Federal Support The agreement would require companies to launch AI education programs in local communities and schools and adopt measures to reduce noise, traffic, and other neighborhood disruptions. In return, the federal government would support faster grid interconnections for new data centers to the bulk power system. The administration plans to announce the initiative at a White House event, though it is unclear which companies will participate or have signed on. White House did not immediately respond to Benzinga's request for comment. Reining In Data Center Energy Costs This move by the Trump administration follows a proposal that PJM Interconnection, the largest power grid operator in the U.S., hold an emergency auction allowing tech giants to bid on 15-year contracts for building new power plants. Disclaimer: This content was partially 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

US wants firms to commit to new AI data center compact, Politico reports

Feb 9 (Reuters) - President Donald Trump's administration wants technology companies to commit to a new compact concerning AI data centers, Politico reported on Monday, citing two administration officials. The draft compact sets out commitments to make sure data centers do not raise household electricity prices, strain water supplies or undermine the energy grid, according to the report. It also lays out that companies driving demand should carry the cost of new infrastructure. Politico said the proposed agreement could be subject to change. (Reporting by Costas Pitas; Editing by Caitlin Webber)