Trump Expands AI Data Center Ratepayer Protection Pledge to States and Utilities Amid Rising Electricity Costs
U.S. President Donald Trump has expanded his 'ratepayer protection pledge' to include 23 state governors, 187 utility companies, and data center developers, aiming to shield consumers from rising electricity costs driven by AI data center power demand. Signatories include major utilities like NextEra Energy, Duke Energy, and Pacific Gas & Electric, as well as data center firms Equinix and Digital Realty. The White House claims the pledge will lower electricity bills, but critics note that PJM Interconnection, the largest U.S. grid operator, recently increased power costs by 75.5% and imposed a $2-billion infrastructure upgrade bill on Maryland. Monitoring Analytics attributes these cost hikes directly to data centers. Oregon has passed the POWER Act, forcing large power users to pay true costs, resulting in a 30% increase for data centers and a 1.3% cut for residential customers. The pledge is not legally enforceable, though California is considering codifying it into law. Public backlash has led to temporary bans on data center development in Seattle and New York, threatening Trump's AI policy.
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