5 days ago
Trump unveils plan to have data centers pay for their own electricity
From Callie Patteson
Trump unveiled a “rate payer protection pledge,” an effort to prevent homeowners from bearing the brunt of high electricity costs associated with the deployment of artificial intelligence data centers.
The administration is entering nonbinding agreements with major tech firms, establishing that the companies have an obligation to provide for their own power needs.
“They can build their own power plants as part of their factory so that no one’s prices will go up, and in many cases, prices of electricity will go down for the community,” Trump said. “This is a unique strategy never used in this country before.”
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Energy demand from data centers is expected to surge dramatically over the next decade, with BloombergNEF estimating that data centers will consume more than 100 gigawatts by 2035. By comparison, data center demand in 2024 was estimated to be around 34.7 gigawatts. For comparison, 1 megawatt is traditionally considered to be roughly the same amount of energy consumed by 400 to 900 homes annually.
