Trump says AI firms must fund power boom
Washington, July 24
President Donald Trump said technology companies developing artificial intelligence must bear the cost of building the massive energy infrastructure needed to support the industry's rapid expansion, arguing that the policy would protect American consumers from rising electricity bills while accelerating investment in the United States.
Speaking at an event highlighting his administration's Ratepayer Protection Pledge, Trump said soaring electricity demand from AI data centres should not be passed on to households.
"We're insisting that AI data centres and big tech companies pay their own way," Trump said. "And they're happy to do it, because this way, they're going to be able to function and function brilliantly."
The President said his administration was allowing companies to construct their own power plants alongside new AI facilities, reducing pressure on the existing electricity grid while enabling additional electricity to flow back into the system.
"They're going to have a lot of electricity left over and they'll put that into the grid, so we'll actually end up with more electricity, the rates are going to go down," he said.
Trump said artificial intelligence would require an unprecedented expansion in electricity generation.
"You need double the electricity that we have right now, maybe even more than that, to really fulfil what you want to do," he said.
He described the initiative as part of the administration's broader Ratepayer Protection Plan, which requires major technology companies to finance or build the energy infrastructure necessary to meet their own growing demand.
"Under this groundbreaking plan, America's largest tech companies have formally committed to fund or build all energy infrastructure required to meet the demand they are placing on the grid," Trump said.
According to Trump, more than 220 utilities, technology companies, state governments and other partners have signed the pledge.
"Electricity rates for 80 per cent of the power distributed in America are now being kept in check by the plan," he said.
The President argued that AI investment would also bring substantial economic benefits to local communities hosting data centres through job creation, tax revenue and lower utility costs.
He cited examples from several states where utilities had frozen electricity rates or where data-centre projects had generated significant local revenue.
"For example, Southern Company's Georgia Power has frozen base rates for households until 2029," Trump said.
He also pointed to Google's investment in Georgia, saying it was "allowing them to eliminate property taxes entirely," and said data-centre agreements in Iowa were enabling utilities to freeze consumer electricity rates for at least five years.
In Louisiana, Trump said a Meta-backed project would generate savings for residents while providing bonuses for public school teachers.
"Public school teachers in Richland Parish are getting as much as $50,000 in bonuses this year, thanks to a $27 billion project by Meta, that will also save local residents $2.6 billion on their electricity bills," he said.
Trump argued that communities rejecting AI infrastructure risked losing investment to competing regions.
"If you don't take all that money, somebody else is going to take it," he said.
The President also said expanding electricity generation was essential if the United States wanted to maintain its technological leadership.
"We want to lead the world," Trump said. "And it is said, if you come in second, you're going to be second overall because there's never been anything big like this."
He described the policy as benefiting both consumers and industry.
"With the Ratepayer Protection Pledge, we're creating a fair deal for everybody," Trump said. "This is how we'll grow our economy, lower the cost of living, protect American consumers, and lead the world in AI and high tech all at the same time."
— IANS
Reader Comments
The Meta project in Louisiana giving teachers $50,000 bonuses is impressive but let's be realistic - how many Indian states have that kind of bargaining power with big tech? We saw what happened in Karnataka with Foxconn and other companies demanding endless subsidies. Trump's approach puts the burden where it belongs - on the companies creating the demand. Smart policy overall.
While I appreciate the concept, I have to question the numbers. Trump claims 80% of power distribution is under this plan, but America's grid is highly fragmented. Also, tech companies already pay some of the highest commercial electricity rates. This might just end up being another corporate tax break disguised as consumer protection. The truth will be in the fine print.
As someone working in renewable energy sector in India, I find this whole 'build your own plant' approach fascinating. But we need to ask - what kind of power plants? Trump didn't mention renewable energy even once in this speech. If tech companies build natural gas or coal plants to power AI, that's a climate disaster. Our Indian IT hubs should push for solar-powered data centres instead. Sustainability matters!
Trump's 'double the electricity' comment caught my attention. India's AI ambitions are equally massive - we have the Bhashini project, multiple AI centres of excellence, and major investments from Google and Microsoft. Our electricity demand is growing at 7-8% annually even without AI. The question is whether our power sector can keep up. This model of having companies invest in parallel infrastructure might work well for areas like Noida and Bengaluru where power demand is already straining the grid.
J Jennifer L