Trump's New Energy Rule for AI: 'Bring Your Own Power'

Feb 27, 2026, 2:19 AM

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During his State of the Union address, President Trump announced a significant new policy aimed at Big Tech's AI developers: they must "bring their own power" for data center operations. This directive, part of a broader "ratepayer protection pledge," requires companies to fund their own electricity usage, a move intended to alleviate the burden on consumers facing rising electricity costs.

The rationale behind this policy stems from the increasing energy demands of AI data centers, which consume vast amounts of electricity. Trump highlighted the inadequacies of the current power grid, stating, "We have an old grid; it could never handle the kind of numbers - the amount of electricity - that's needed." Companies are now encouraged to construct their own power plants to ensure they have a reliable energy source while reducing costs for consumers.

While the specifics of the plan remain unclear, Energy Secretary Chris Wright indicated that major technology firms have signed onto the agreement, potentially including giants like Alphabet, Meta, and Amazon. This initiative comes at a time when national energy demand has surged, with estimates suggesting that power consumption from US data centers could triple by 2028.

The average electricity price in the US has also risen, reaching approximately $0.1724 per kilowatt-hour, marking a 6% increase from the previous year. With these rising costs, there is apprehension among Americans that the demand from AI data centers could further inflate their utility bills.

This policy announcement is not without controversy, as it addresses a growing opposition to energy-intensive data center projects that are blamed for escalating electricity prices across various regions. Trump’s administration aims to balance the need for advancing artificial intelligence technology while addressing consumer concerns about rising energy costs, a potentially crucial issue as the midterm elections approach.

In response to the energy challenges posed by their operations, several tech companies, including Microsoft and OpenAI, have already committed to covering their energy expenses. Microsoft has pledged to pay utility rates sufficient to cover its data center energy costs and even replenish more water than its operations consume. Similarly, OpenAI has committed to ensuring that its energy usage does not lead to increased electricity prices for consumers.

As these changes unfold, the White House plans to host discussions with tech companies in early March to formalize the efforts surrounding the new energy policy. This move reflects a significant shift in how Big Tech is expected to approach energy consumption, particularly as demand for AI infrastructure continues to grow.

Overall, Trump's new directive could reshape the landscape of energy consumption in the technology sector, compelling companies to take greater responsibility for their energy needs while attempting to protect consumers from soaring electricity prices.

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