(Bloomberg) — White House officials are asking technology companies to pledge that their data centers won’t increase electricity prices and cause other burdens for consumers, according to two people familiar with the initiative.
The effort includes pressing technology executives to sign non-binding compacts vowing that their companies would take on the cost of building the necessary infrastructure to support their data center use, said the people, who requested anonymity to discuss a plan that isn’t yet public.
Most Read from Bloomberg
Officials in President Donald Trump’s administration have been talking with Microsoft Corp., Alphabet Inc. and other companies about signing the pledges, the people said. White House spokespeople didn’t immediately respond to a request for comment lodged after normal business hours Monday evening.
Earlier: Trump and the Markets Love AI, But a Voter Backlash Is Brewing
The effort attempts to address political and public relations problems tied to the buildout of data centers nationwide as technology companies demand more computing power for artificial intelligence initiatives.
Tech companies are encountering a growing grassroots backlash with activist groups mobilizing to fight the construction of energy-hungry data centers in some regions, citing their demands on local infrastructure, available water and power supplies. A number of jurisdictions, including Atlanta and New Orleans, have imposed restrictions on constructing new centers.
The issues also pose a political risk for Trump before November’s midterm elections that will determine whether Republicans retain control of Congress. Cost-of-living concerns loom large for voters, and while Trump has touted falling prices for gasoline, power costs have climbed. Those increases have been fed by demand from industrial operations, data centers and increased electrification of home heating, cooking and transportation.
The Wall Street Journal on Monday reported Trump could highlight the pledges during his State of the Union address on Tuesday. Politico previously reported on elements of the initiative.
While the promises wouldn’t have the force of law, administration officials believe the formal, public pledges could bring accountability and offer some assurance to consumers worried that the rapid development of AI envisioned by Trump could lead to environmental damage and higher costs.
