Trump Calls on Big Tech to Build Own Power Plants as Demand Surges

Tech giants embrace on-site power generation to meet AI data center needs and protect consumers from rising electricity costs

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

President Donald Trump announced during his State of the Union address that he has issued a mandate for major technology companies to build their own power plants to supply electricity for new AI data centers. This 'Ratepayer Protection Pledge' is aimed at ensuring that American families don't have to shoulder the burden of rising power demand from the booming AI industry. Several tech giants, including Amazon, Microsoft, and Anthropic, have already confirmed they will attend the White House next week to formally sign the pledge.

Why it matters

The rapid growth of AI data centers has led to a dramatic spike in electricity demand, triggering a wave of utility rate hike requests across the country. By requiring tech companies to build their own power generation, the Trump administration hopes to protect consumers from higher electricity bills while also ensuring American dominance in the AI race.

The details

Many data center operators have already started building their own on-site power plants, mostly fueled by natural gas, to bypass long wait times for grid connections and ensure a reliable power supply. Cleanview, a data visualization firm, found that about 30% of all planned data center capacity in the U.S. will include behind-the-meter power generation, with 90% of that capacity added in 2025 alone. Texas is emerging as the top state for this trend, hosting over one-third of the planned behind-the-meter buildout.

  • President Trump announced the Ratepayer Protection Pledge during his 2026 State of the Union address on February 25.
  • Tech companies will formally sign the pledge at the White House next week.

The players

Donald Trump

The 45th President of the United States, who issued the mandate for tech companies to build their own power plants.

Amazon

A major technology company that has confirmed it will attend the White House next week to sign the Ratepayer Protection Pledge.

Microsoft

A major technology company that has confirmed it will attend the White House next week to sign the Ratepayer Protection Pledge.

Anthropic

A technology company that has committed to covering 100% of electricity price increases that consumers face from its data centers, in support of the Ratepayer Protection Pledge.

Elon Musk

The founder of xAI, which has drawn scrutiny for deploying unpermitted mobile generators to quickly get its data centers up and running.

Got photos? Submit your photos here. ›

What they’re saying

“The Ratepayer Protection Pledge is an important step. We appreciate the Administration's work to ensure that data centers don't contribute to higher electricity prices for consumers.”

— Brad Smith, Vice Chair and President, Microsoft (Business Insider)

“American families shouldn't pick up the tab for AI. In support of the @WhiteHouse ratepayer protection pledge, Anthropic has committed to covering 100% of electricity price increases that consumers face from data centers.”

— Sarah Heck, Head of External Affairs, Anthropic (X (Twitter)

What’s next

Major tech companies will join President Trump at the White House next week to formally sign the Ratepayer Protection Pledge.

The takeaway

By requiring tech giants to build their own power plants, the Trump administration aims to ensure that the booming AI industry does not lead to higher electricity costs for American consumers. This move is part of the president's broader effort to maintain U.S. dominance in emerging technologies while also protecting working families.