Politicians Demand Tech Giants Pay for Electricity Costs of Data Centers

Lawmakers from both parties push for data centers to cover rising energy bills, but consensus on 'fair share' remains elusive.

Published on Feb. 13, 2026

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As outrage grows over energy-hungry data centers, politicians from President Trump to local lawmakers have found rare bipartisan agreement that tech companies, not regular people, must pay the exorbitant electricity costs required for artificial intelligence. However, there is little consensus on what a 'fair share' means, with concerns that data centers' power demands are already driving up electricity prices for consumers. States and utilities are starting to implement rules to make data centers cover their own costs, but analysts warn this may not fix the short-term problem of surging electricity demand outpacing power grid capacity.

Why it matters

The rising cost of powering data centers has become deeply intertwined with broader concerns over the cost of living, a dominant issue in the upcoming midterm elections. Anger over the issue has already had electoral consequences, with Democrats ousting two Republicans from Georgia's utility regulatory commission. Voters are increasingly connecting their own electricity bills to the presence of data centers in their communities.

The details

Data centers are sprouting across the U.S. as tech giants scramble to meet demand for AI products that require massive computing power. Some data centers need more electricity than a small city, setting off a race to build more power plants. This can have a ripple effect that raises prices for all ratepayers, as utilities spread the cost of new infrastructure. States and utilities have started requiring data centers to buy long-term power contracts, pay for needed upgrades, and make big deposits in case they go bankrupt. But analysts warn this may not fix the short-term problem of data centers outbidding regular consumers for scarce electricity.

  • In November 2025, Democrats ousted two Republican members of Georgia's utility regulatory commission, in part due to voter anger over rising electricity costs tied to data centers.
  • Earlier this month, U.S. Energy Secretary Chris Wright disputed claims that data centers are driving up electricity bills, despite what consumer advocates and analysts say.

The players

President Donald Trump

The former U.S. president who has embraced artificial intelligence as a top economic and national security priority, though he has acknowledged the backlash over data centers' electricity demands.

Ari Peskoe

Director of the Electricity Law Initiative at Harvard University, who says the term 'fair share' is 'squishy' and can mean different things to different people.

Chris Wright

The current U.S. Energy Secretary under President Trump, who has disputed claims that data centers are driving up electricity bills for consumers.

Katie Hobbs

The Democratic governor of Arizona, who is calling for a water fee and elimination of a sales tax exemption for data centers, which she calls a '$38 million corporate handout.'

Laura Swett

The chair of the Federal Energy Regulatory Commission, who told a congressional subcommittee that she believes data center operators are willing to cover their costs and understand the importance of community support.

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What they’re saying

“Fair share' is a pretty squishy term, and so it's something that the industry likes to say because 'fair' can mean different things to different people.”

— Ari Peskoe, Director, Electricity Law Initiative at Harvard University (The Washington Times)

“Americans are not paying higher prices because of data centers. There's a perception there, and I get the perception, but it's not actually true.”

— Chris Wright, U.S. Energy Secretary (The Washington Times)

“It's time we make the booming data center industry work for the people of our state, rather than the other way around.”

— Katie Hobbs, Governor of Arizona (The Washington Times)

“That's not been our experience," Landsman responded, saying projects in his district are getting tax breaks, sidestepping community opposition and costing people money. "Ultimately, I think we have to get to a place where they pay everything.”

— Greg Landsman, U.S. Representative, D-Ohio (The Washington Times)

“Voters are already connecting the experience of these facilities with their electricity costs and they're going to increasingly want to know how government is going to navigate that.”

— Christopher Borick, Pollster and Director, Muhlenberg College Institute of Public Opinion (The Washington Times)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.