Republican governors, data center developers, and utilities have signed on to President Donald Trump's ratepayer protection pledge, which aims to ensure that data centers secure their own energy to prevent households from bearing the costs. The announcement was made during a signing event at the EPA headquarters, attended by Trump, Energy Secretary Chris Wright, and EPA Administrator Lee Zeldin, where nearly 200 stakeholders endorsed the pledge.
Trump stated that the initiative would benefit both American innovators and consumers, asserting that data centers would be able to function efficiently while contributing surplus electricity to the grid, potentially lowering rates. Among the Republican governors present were Jeff Landry of Louisiana, Brian Kemp of Georgia, Jim Pillen of Nebraska, and Brad Little of Idaho. Major utilities, including Duke Energy and NextEra Energy, also signed the pledge.
Initially announced in March, the pledge requires major technology companies to build or procure the energy needed for their data centers while covering the costs of infrastructure upgrades. Trump has advocated for data center growth in the U.S. as a means to compete with China.
However, public opposition to data centers has been rising due to concerns over energy prices, water consumption, and noise pollution. A Gallup poll indicated that 70% of respondents oppose constructing AI data centers in their areas, with 48% strongly opposed. Data centers are projected to account for approximately 20% of U.S. electricity consumption by 2035, up from 5.9% currently, according to BloombergNEF.
In response to these concerns, Democrat-led states and lawmakers have proposed moratoriums on data centers, with New York recently enacting a one-year ban on new constructions. Trump remarked that communities supporting data centers would benefit from job creation with minimal disruption.
Legislation mirroring the White House's pledge has been proposed, with House lawmakers advancing the bipartisan Ratepayer Protection Act, which would require state regulators to establish standards for new data centers consuming over 100 megawatts of electricity to cover the costs of new generation and infrastructure upgrades.