On Wednesday, President Donald Trump and several major tech companies signed the Ratepayer Protection Pledge, which they said would help alleviate additional costs that data centers are imposing on Americans.
Americans use data centers in one way or another nearly every day. While the expansion of artificial intelligence has made headlines for its heavy reliance on data centers, other services use them too. Services like streaming and cloud access also require data centers.
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According to previous reporting from Straight Arrow News, electricity prices increased more than 6% in January compared to the previous year. Energy experts believe that prices could continue to rise as AI companies build more and larger data centers to train their products. Data centers now make up 40% of electricity demand growth, CNBC reports.
What does Trump’s data center deal do?
During the roundtable discussion, Trump said the pledge has five key commitments. The first is that AI companies will pay for their AI projects. This includes power generation and electricity needed for data centers. Trump said that companies would even add to the energy grid’s capacity.
“These companies are committing to provide or pay for all power generation and electricity needed for their AI projects,” Trump said. “Where possible, they’ll add capacity to the grid by building new power stations.”
The pledge asks the tech companies to cover the costs of upgrading existing power infrastructure if they require more power. Trump said AI and energy companies will negotiate separate utility rate structures, ensuring that the cost of new energy infrastructure is borne by companies, not consumers.
Local energy grids will be able to use the additional infrastructure made by AI companies for backup power, according to Trump.
“So, they’re going to have a lot of backup power,” Trump said. “Basically, we’re building massive amounts of electricity, and you’re not paying for it at all.”
Finally, companies pledged to invest in the communities where they build and operate. This includes training and jobs for skilled workers, like electricians and engineers. During the event, Meta, the parent company of Facebook and Instagram, announced a pilot program to train fiber technicians in Ohio.
In addition to Meta, representatives from Google, xAI, OpenAI, Microsoft, Amazon Web Services and Oracle also attended the event.
Ironically, AI company Anthropic was the biggest supporter of the White House’s plan, according to Fox News. However, on Friday, Trump and Defense Secretary Pete Hegseth announced that it was cutting its partnership with Anthropic after the company refused to allow the military full use of its AI chatbot. Specifically, Anthropic had issues with the military using its technology in automated weapons and surveilling Americans.
Hegseth designated Anthropic as a supply chain risk, effectively blacklisting it from doing any business with the U.S. military.
