White House Signals Big Tech Must Pay for AI Data Center Costs

Trade Advisor Peter Navarro says tech companies must "internalize" electricity, water, and grid strain from AI infrastructure.

Published on Feb. 16, 2026

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The White House is signaling it may force Big Tech companies to cover the full costs of the electricity, water, and grid strain created by their rapidly expanding AI data center infrastructure. Peter Navarro, President Trump's trade advisor, said on Fox News that tech firms "need to pay for all of the costs" and that taxpayers should not have to shoulder the impact of the AI boom. Navarro's comments come as the AI data center buildout faces scrutiny over rising utility bills.

Why it matters

The White House's stance reflects growing concerns about the strain that the AI data center boom is placing on the US power grid and utility costs for consumers. As tech giants like Meta and Apple pour hundreds of billions into AI infrastructure, energy costs are rising, with utilities citing surging data center demand as a key reason for seeking higher rates. The administration wants to ensure that the costs are not passed on to American households.

The details

Navarro said on Fox News that data center builders must "internalize" the costs of the electricity, water, and grid strain their AI infrastructure creates. He stated that companies "need to pay for all of the costs" and that taxpayers should not have to shoulder the impact. The White House wants to "make sure the American people are not hurt" by the AI data center expansion. This comes as the AI data center boom faces mounting scrutiny over rising utility bills, with many power providers citing surging electricity demand from large-scale data centers as a key reason for seeking higher rates.

  • In November, Meta pledged $600 billion to expand AI technology, infrastructure, and its workforce.
  • In August, Apple said it would boost its US infrastructure plans by adding another $100 billion, bringing its total commitment to $600 billion.
  • Last year, electric and gas utilities sought $31 billion in rate hikes from regulators, more than twice the $15 billion requested the year before.

The players

Peter Navarro

President Donald Trump's trade advisor who stated that tech companies building data centers "need to pay for all of the costs" and that taxpayers should not have to shoulder the impact of the AI boom.

Meta

A tech giant that pledged $600 billion in November to expand AI technology, infrastructure, and its workforce.

Apple

A tech giant that said in August it would boost its US infrastructure plans by adding another $100 billion, bringing its total commitment to $600 billion.

Anthropic

An AI company that pledged to cover 100% of the grid upgrade costs associated with its AI data centers.

Microsoft

A tech company that said it would pay utility rates high enough to cover the electricity costs tied to its data centers and minimize the burden of data center expansion on surrounding communities.

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What they’re saying

“We have to lead China and others on this, at the same time, we have to be mindful of the impacts across this nation.”

— Peter Navarro, President Donald Trump's trade advisor (Fox News)

“The country needs to build new data centers quickly to maintain its competitiveness on AI and national security, but AI companies shouldn't leave American ratepayers to pick up the tab.”

— Anthropic (Anthropic)

“I never want Americans to pay higher Electricity bills because of Data Centers. The big technology companies who build them must pay their own way.”

— Donald Trump, President (Truth Social)

What’s next

The White House is expected to take further action to ensure that tech companies cover the full costs of their AI data center expansion, rather than passing those costs on to American consumers through higher utility bills.

The takeaway

The White House's stance highlights the growing tension between the rapid growth of the AI industry and the need to protect American households from bearing the brunt of the associated infrastructure costs. As tech giants continue to invest heavily in AI, policymakers are seeking ways to ensure that the benefits of this technological advancement are not outweighed by the burden on taxpayers and utility ratepayers.