As artificial intelligence continues to fuel a boom in data center construction, the Trump administration says the companies behind those projects—not everyday Americans—should pay the cost of powering them.
President Donald Trump announced Thursday that major utility providers NextEra and Duke Energy have signed the administration's voluntary Ratepayer Protection Pledge, joining nearly 200 organizations that have backed the effort.
The pledge is designed to keep the growing energy demands of AI data centers from driving up electric bills for residential customers.
Data centers require enormous amounts of electricity to operate. According to the International Energy Agency, a typical data center uses as much electricity each year as 10,000 to 25,000 households.
Under the pledge, AI companies agree to pay for the power generation, grid capacity and infrastructure needed to support their facilities. If upgrades to existing electrical systems are required, those costs would also be covered by the companies building the projects.
The agreement also calls for AI developers and utilities to negotiate separate electric rate structures so the cost of new infrastructure is not shifted onto residential customers.
Another provision allows local power grids to use infrastructure built for AI projects as backup power, while companies also commit to investing in the communities where they build data centers through job creation and workforce training.
The White House says the effort is about protecting ratepayers while continuing to expand America's AI industry.
"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."
The administration is also expanding the pledge beyond technology companies.
Twenty-three Republican governors have signed on, including Texas Gov. Greg Abbott, Georgia Gov. Brian Kemp, Iowa Gov. Kim Reynolds, Ohio Gov. Mike DeWine, Tennessee Gov. Bill Lee, Utah Gov. Spencer Cox and Alabama Gov. Kay Ivey.
Kemp is expected to attend Thursday's event alongside Louisiana Gov. Jeff Landry, Nebraska Gov. Jim Pillen and Idaho Gov. Brad Little.
Only three Republican governors—Florida Gov. Ron DeSantis, New Hampshire Gov. Kelly Ayotte and Vermont Gov. Phil Scott—have not signed the pledge. No Democratic governors have joined the initiative.
Several of the nation's largest technology companies signed the pledge earlier this year, including Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon.
Trump has embraced the rapid expansion of AI infrastructure, previously describing data centers as "big, strong, bold, and Money Machines." At the same time, the industry has drawn growing bipartisan scrutiny over the amount of electricity and water data centers consume, as well as concerns from nearby residents about noise and other impacts.
