{"id":91858,"date":"2026-03-04T18:20:14","date_gmt":"2026-03-04T21:20:14","guid":{"rendered":"https:\/\/ubirataonline.com.br\/trump-faces-an-ai-data-center-power-dilemma-ahead-of-midterms\/"},"modified":"2026-03-04T18:20:53","modified_gmt":"2026-03-04T21:20:53","slug":"trump-faces-an-ai-data-center-power-dilemma-ahead-of-midterms","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/trump-faces-an-ai-data-center-power-dilemma-ahead-of-midterms\/","title":{"rendered":"Trump faces an AI data center power dilemma ahead of midterms"},"content":{"rendered":"

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President Donald Trump<\/a> will haul big technology companies into the White House on Wednesday to sign a pledge that they will supply their own power for artificial intelligence data centers, as anger grows across the U.S. over rising electricity prices ahead of the midterm elections.<\/p>\n

Trump has embraced the artificial intelligence industry as an engine of economic growth and pillar of national security in the U.S. rivalry with China. But his alliance with the industry also poses political risks as Democrats zero in on the cost of living as they campaign to win back Congress. <\/p>\n

Grassroots opposition to data centers is growing in communities across the U.S. with residents blaming the facilities for high utility bills. Trump promised to cut electricity prices in half<\/a> during his first year in office. Instead, residential prices increased 6% in 2025 on average nationwide, according to federal data<\/a>. <\/p>\n

Trump tried to address voter frustration in his State of the Union<\/a> address last week, through what he is calling a “ratepayer protection pledge.”<\/p>\n

Power obligation<\/h3>\n

“We’re telling the major tech companies that they have the obligation to provide for their own power needs,” Trump told a joint session of Congress on Feb. 24.<\/p>\n

Amazon<\/a>,\u00a0Google<\/a>,\u00a0Meta Platforms<\/a>,\u00a0Microsoft<\/a>, xAI,\u00a0Oracle<\/a>\u00a0and OpenAI will sign the agreement Wednesday, a White House official told CNBC. White House spokeswoman Taylor Rogers said the companies will “build, bring, or buy their own power supply for new AI\u00a0data\u00a0centers, ensuring that Americans’ electricity bills will not increase as demand grows.” <\/p>\n

But it is unclear whether the pledge will carry any concrete commitments. Trump’s trade and manufacturing advisor, Peter Navarro, has previously said the White House would “force” the tech companies<\/a> to “internalize” the costs associated with their data centers.<\/p>\n

The administration faces an uphill battle turning the pledge into policy that is actually implemented on the ground, said Rob Gramlich, president of consulting firm Grid Strategies and former economic advisor to the Federal Energy Regulatory Commission. <\/p>\n

Decentralized rules<\/h3>\n

The rules governing the electric grid are decentralized across all 50 states, each with their own public utility commissions and different laws. The states would have to approve rules requiring data center developers pay for the costs of new power generation, Gramlich said. <\/p>\n

“The White House can’t do that on its own,” he said. “It doesn’t have any jurisdiction there and of course the technology companies can’t do that on their own either.” <\/p>\n

Democrats quickly criticized the pledge as an empty promise. <\/p>\n

“A handshake agreement with Big Tech over data center costs isn’t good enough,” Sen. Mark Kelly of Arizona said in a Feb. 24 social media post<\/a>. “Americans need a guarantee that energy prices won’t soar and communities have a say.”<\/p>\n

Implementation challenges<\/h3>\n

There is a growing political consensus across the U.S. that data center developers need to pay for new transmission and power plants, but such calls may already prove too little too late. Electricity prices are forecast to rise 6% through 2026 and another 3% in 2028 as data center demand grows more rapidly than power supply, according to a Goldman Sachs report<\/a> published last month. <\/p>\n

The problem is most acute on PJM Interconnection<\/a>, which covers 13 states, mostly in the mid-Atlantic and Midwest, and is the largest U.S. electric grid. The cost to secure power supplies on PJM has exploded in recent years, with $23\u00a0<\/strong>billion attributable to data centers, according to watchdog Monitoring Analytics. Those costs get passed down to consumers.<\/p>\n

This amounts to a “massive wealth transfer,” the watchdog told PJM in a\u00a0November letter<\/a>.<\/p>\n

The Trump administration and a bipartisan group of governors called on PJM in January to hold an emergency auction<\/a> in which the tech companies would bid to bring new power plants online. <\/p>\n

Energy Secretary Chris Wright asked the Federal Energy Regulatory Commission<\/a> in October to take jurisdiction over connecting big data centers to the grid, allowing FERC to require data centers to pay for the cost of new transmission, Gramlich said. But that wouldn’t address the issue of new power generation, which is mostly regulated at the state level, he said.<\/p>\n

“You would need a new federal law” for the Trump administration to directly address bringing more generation online, Gramlich said. <\/p>\n

Political leverage<\/h3>\n

But as its most powerful ally, Trump holds unique political leverage over the AI industry. He has not hesitated to pressure independent agencies, and frequently uses the White House bully pulpit to pressure companies to do what he wants. <\/p>\n

“We’ve clearly seen this is a maximalist policy administration,” said Abe Silverman, who served as general counsel for New Jersey’s public utility board from 2019 until 2023. “There are reasons to think that this administration will be able to assert its will more directly than past administrations.”<\/p>\n

Politicians across the political spectrum are targeting data centers. Illinois Gov. JB Pritzker proposed a two-year moratorium on tax incentives<\/a> for data centers during his Feb. 18 State of the State address. Sen. Bernie Sanders of Vermont is calling for a data center moratorium<\/a>. Florida Gov. Ron DeSantis has proposed legislation to regulate data centers and protect families from price hikes. <\/p>\n

Energy Secretary Wright told reporters last week that the administration has warned the tech companies that if they “are perceived to drive up electricity prices,” they will reap the backlash. <\/p>\n

“We want to see data centers developed,” Wright said. “We want to see communities welcoming them, but to do that, it’s necessary to have up-front investments in the additional grid infrastructure needed.” <\/p>\n<\/div>\n

Source link <\/a><\/p>","protected":false},"excerpt":{"rendered":"

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