Trump Expands AI Data Center Ratepayer Protection Pledge to States and Utilities Amid Rising Electricity Costs
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 demands. Signatories include major utilities like NextEra Energy, Duke Energy, and Pacific Gas & Electric, as well as data center operators Equinix and Digital Realty. The White House claims the pledge will lower electricity bills, but critics note it is not legally enforceable. Meanwhile, PJM Interconnection, the largest U.S. grid operator, increased power costs by 75.5% and charged Maryland $2 billion for grid upgrades to accommodate out-of-state AI data centers. Oregon has passed the POWER Act, forcing large electricity consumers to pay true costs, resulting in a 30% increase for data centers and a 1.3% cut for residential customers. Several jurisdictions, including Seattle and New York, have imposed temporary bans on data center developments due to concerns over costs, water quality, and noise pollution.
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