This article first appeared on GuruFocus.
White House officials are leaning on major technology companies as artificial intelligence infrastructure expands, pressing them to commit that new data centers will not translate into higher electricity bills for consumers. According to people familiar with the discussions, President Donald Trump’s administration has been in talks with Microsoft Corp. (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG) about signing non-binding pledges that would effectively require companies to absorb the cost of building the infrastructure needed to power their facilities. The proposed compacts would not carry the force of law, but officials appear to believe formal, public commitments could help address mounting concerns that the rapid buildout of AI capacity may be adding pressure to already rising utility costs.
The effort arrives at a sensitive political moment. Electricity prices have climbed faster than overall inflation, with increases fed in part by demand from industrial operations, data centers and broader electrification of home heating, cooking and transportation. Grassroots groups have mobilized in several regions to oppose new data centers, citing strains on local power grids, water supplies and other infrastructure, and jurisdictions including Atlanta and New Orleans have imposed restrictions on new construction. With November’s midterm elections set to determine whether Republicans retain control of Congress, the administration appears focused on containing potential voter backlash tied to cost-of-living concerns, even as Trump has highlighted falling gasoline prices and promoted AI expansion.
The Wall Street Journal has reported that Trump could reference the pledges during his State of the Union address, following earlier remarks that while data centers are key to the AI boom, large technology companies must pay their own way. In parallel, the administration is pressing the nation’s largest power grid to conduct an emergency auction that would allow technology firms to bid for long-term electricity supplies. Taken together, the initiatives suggest the White House is seeking to balance aggressive support for AI development with political and economic guardrails aimed at reassuring consumers that the costs of that growth will not be shifted onto households.
