Trump signs agreement with Big Tech to cover data center electricity costs

descriptions off, selected

captions settings, opens captions settings dialog

Subtitles (en), selected

This is a modal window.

Beginning of dialog window. Escape will cancel and close the window.

End of dialog window.

The Hill's Headlines — March 4, 2026

The Hill's Headlines — March 4, 2026

President Trump and major tech firms announced an agreement Wednesday to have Big Tech companies cover the cost of the electricity they consume as development of artificial intelligence shows no signs of stopping.  

Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon have agreed to sign onto the “Ratepayer Protection Pledge,” the White House said Wednesday, describing the pact as an agreement to build, bring or buy new power to support their data centers in order to prevent higher electricity costs for consumers. 

Trump, during Wednesday’s roundtable with the companies’ leaders, said that companies would make five promises in accordance with the pact: This includes a commitment to provide or pay for all power generation and electricity needed for AI projects, along with adding electricity generating capacity to the grid through new power plants when possible.

Companies also agreed to negotiate separate rate structures with different utilities, invest in local communities for workforce development, and utilize their infrastructure to provide backup power to local grinds when needed. 

“In short, America’s largest and richest tech companies will be funding a colossal expansion of U.S. energy,” Trump said. 

He also said that the federal government would quickly approve permits for the plants. 

The move comes as concerns mount over data centers’ impact on customer electricity rates. 

Trump said in his speech that data centers “need some PR help, because people think that if a data center goes in, their electricity prices are going to go up.”

Data centers consume large amounts of electricity, which experts say could lead to higher electric bills as companies race to meet higher demand, including through the construction of new infrastructure.

Experts say the data center construction boom also raises the risk of blackouts if there is not enough power to go around as massive new consumers plug into the grid.

While providing their own power could help defray some of the potential price impacts for consumers, Trump did not specify in his Wednesday remarks how the government would hold Big Tech companies to the pledge.

The president was joined by numerous technology leaders along with Energy Secretary Chris Wright, House Speaker Mike Johnson (R-La.), Sen. Jon Husted (R-Ohio), White House Office of Technology and Policy Director Michael Kratsios, White House AI and cryptocurrency czar David Sacks, and other lawmakers. 

The White House and various technology companies have sought to limit the public blowback over data center demands in recent months, including through other pledges. 

Microsoft announced a five-pronged “community first” AI infrastructure, including a vow to “pay our own way” to avoid the costs being passed onto consumers. OpenAI also included energy-related commitments for the Stargate Project, the massive Trump administraton data center expansion intitiative, stating at the time “we can only achieve our mission by being good neighbors.” 

Wednesday’s announcement appears to be in line with Microsoft’s prior pledge, but seems to be a more explicit commitment than the past promises made by OpenAI.

The push reflects a balance the administration is trying to strike — keeping a pro-business and innovation stance while also warding off increasing backlash to data centers.

The administration has sought to bolster the technology, moving to speed up approvals for data centers, including by creating a “categorical exclusion” curtailing environmental reviews for data center projects. 

It has also sought to expedite approvals of new chemicals expected to be used for data centers and pushed to try to get data centers connected to the power grid more quickly. 

Mark Wolfe, the executive director of the National Energy Assistance Directors’ Association, told The Hill that the announcement was “a step in the right direction.”

“The details are important, though,” he added, specifically noting that the details of the rates that companies negotiate will matter. 

“The summer cooling season is rapidly approaching, and we need to get rates under control before that happens,” added Wolfe, whose  organization represents state directors of the Low-Income Home Energy Assistance Program. “Otherwise, you’re looking at potentially a record cost of summer cooling.”

Dan Ives, analyst for Wedbush Securities, said in a memo following the event that while the initiative reduces a “major headache” for the Trump administration heading into the midterm elections, it could create a “significant bottleneck” with technology companies that could slow down data center buildouts.

This comes, Ives said, as the US enters a “crucial time of the AI revolution” and as the country “faces significant energy shortages/issues to fuel data center buildouts.”

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Noem defends living on base in Coast Guard housing 

Ted Cruz, Tim Scott asking Treasury to approve $200B tax cut without ...

RFK Jr. puts Dunkin’ on notice; Massachusetts governor says ‘come and take ...

Canadian PM Carney says US and Israel’s strikes on Iran mark ‘failure of ...

Senate Republicans defeat measure to halt Iran strikes despite growing anxieties

Noem’s spending review has held up more than 1,000 FEMA contracts, grants and ...

House Oversight panel subpoenas Pam Bondi over Epstein files

House tees up final vote on Department of Homeland Security funding bill

Hegseth, Caine preview major gravity-bombing campaign on Iran

Kelly: Iran operation 'not going well' for Trump administration

Judge orders Trump administration to close out goods without charging emergency ...

Johnson: ‘Everybody in America better watch’ how lawmakers vote on DHS ...

Live updates: Leavitt gives testy briefing amid Iran strikes; Trump to endorse ...

Live results: Crockett, Talarico seek Democratic nod in Texas Senate race

The new SNAP food restrictions aren’t just confusing — they’re illegal

Crockett concedes to Talarico, says Texas ‘primed to turn blue’

Leavitt, CNN’s Kaitlan Collins spar over coverage of US deaths in Iran

Fox News poll: Majority says Trump’s handling of Iran has made US less safe

© The Hill