Trump Negotiates Tech Giants to Pay More for Data Center Energy Costs

President says tech companies must cover rising electricity prices from AI data centers

Published on Feb. 25, 2026

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President Trump announced that he is negotiating pledges from major tech companies to pay a greater share of the energy costs associated with new data centers, as demand for electricity is increasing across the United States due to the growth of power-hungry AI data centers. While light on details, the move underscores concerns that the AI boom could cause utility bills to spike for ordinary households.

Why it matters

Rising electricity prices have become a volatile political issue, with fears that data centers' growing energy demands could drive up costs for consumers. The White House is trying to address this concern by getting tech giants to cover more of the infrastructure costs, though experts say such pledges may be difficult to verify and enforce in practice.

The details

Trump said he was negotiating a "ratepayer protection pledge" where tech companies would have an "obligation to provide for their own power needs" and "build their own power plants so no one's prices will go up." Data centers can use as much power as a small city, often requiring costly grid upgrades that utilities have historically spread across all customers. While some tech firms have pledged to pay higher rates, experts say it's unclear how this would work in practice given confidential utility contracts and complex cost allocation rules.

  • On Tuesday, President Trump announced the tech company pledge during his State of the Union address.
  • Last month, the Trump administration floated a plan to have tech companies pay to build new power plants in the PJM Interconnection grid region through 15-year contracts.

The players

President Trump

The President of the United States who announced the negotiations with tech companies over data center energy costs.

Briana Kobor

Head of energy market innovation at Google, who stated the company wants to "pay our fair share of all costs associated with serving us."

Ari Peskoe

Director of the Electricity Law Initiative at Harvard University, who said the effects of tech companies paying more would depend on the specifics and there are "a lot of big question marks" in practice.

Josh Levi

President of the Data Center Coalition, a trade association, who said tech companies plan to "work closely" with the administration on the issue.

Chris Wright

The Energy Secretary, who said "Every name you know that's developing a data center has been in dialogue with us."

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What they’re saying

“We're telling the major tech companies they have the obligation to provide for their own power needs and can build their own power plants so no one's prices will go up.”

— President Trump (The New York Times)

“We absolutely want to pay our fair share of all costs associated with serving us.”

— Briana Kobor, Head of energy market innovation at Google (The New York Times)

“If you could wave a magic wand and have tech companies pay for every nickel that's being spent on infrastructure, that would have a significant effect. But it gets complicated in practice. There are a lot of big question marks here.”

— Ari Peskoe, Director of the Electricity Law Initiative at Harvard University (The New York Times)

What’s next

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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.