President Donald Trump is expanding a voluntary pledge aimed at ensuring the rapidly growing data center industry pays for the electricity it consumes rather than shifting those costs onto everyday ratepayers.
On Thursday, Trump announced that utilities, electric cooperatives and state governments are joining a commitment that was previously signed by major technology companies and data center developers.
The pledge comes as artificial intelligence fuels an unprecedented boom in data center construction across the country. Those facilities require enormous amounts of electricity, raising concerns that residential customers could eventually see higher utility bills as power companies build new infrastructure to meet demand.
Under the voluntary agreement, data centers commit to either bringing their own power generation or paying for the electricity, transmission upgrades and other infrastructure needed to support their operations. The pledge also encourages companies to invest in local communities and make backup power available during emergencies whenever possible.
While the White House has acknowledged concerns about the strain data centers can place on electric grids, Trump argued that communities should embrace the projects because of the economic benefits they bring.
"You have communities that really want the data centers, and frankly, those are the smart communities because it means tremendous numbers of jobs, very little actual disruption," Trump said.
He also highlighted the billions of dollars technology companies are investing to support the nation's AI expansion.
"You have to convince your community how great these things [are]," Trump added. "You can't fight it. You have to go with it, and you're going to have all that protection."
Alongside the announcement, the White House launched a website listing organizations that have signed the pledge. According to the administration, the list includes 27 data center developers, 55 utility companies and 105 electric cooperatives. A White House official also confirmed that 23 Republican governors have signed on.
Despite the administration's optimism, the pledge is already drawing criticism from both conservative and progressive policy groups, many of whom argue that its voluntary nature limits its effectiveness.
Travis Fisher, director of energy and environmental policy studies at the Cato Institute, questioned whether the pledge can actually be enforced.
"There's no enforcement …. if you wanted to call somebody out for violating the pledge, what does that even mean?" Fisher said.
The White House's pledge website directly addresses that criticism, noting that some skeptics have questioned whether the agreement "could be enforced, given that power prices are set by state regulators, electricity buyers, and electricity sellers."
The website argues that the pledge now includes commitments from the key players involved.
"The Ratepayer Protection Pledge now has commitments from every one of them — and from the developers who actually build the facilities."
Fisher said another challenge lies in determining which infrastructure costs should be assigned specifically to data centers.
"Even if you agree in principle that you're going to own all of your costs, that argument about which costs are actually yours versus someone else's, or which things were built that could benefit you but also help others — that cost allocation fight is not going to get any simpler," he said.
He added that expanding the pledge to utilities and state regulators makes sense because "state commissions and utilities are the ones who set retail rates," though he noted governors often have limited authority over independent utility regulators.
Criticism has also come from the left.
Jesse Lee, senior adviser for Climate Power and a former Biden White House official, argued that the voluntary agreement lacks meaningful requirements.
"I honestly think that this will result in higher prices because these companies will feel like they did something to get people off their back, and now they don't have to worry about keeping rates under control," Lee said.
He added, "All of it is not only toothless but completely vague, so there's no specifics about what they're actually supposed to do."
As AI development continues to drive demand for new data centers across the country, debates over who should bear the cost of powering that growth are likely to intensify. While the White House says the expanded pledge will protect consumers from rising electricity costs, critics on both sides of the political spectrum remain unconvinced that a voluntary agreement alone will deliver that outcome.
