Trump expands AI data center ratepayer protection pledge to 23 states, 187 utilities

Twenty-three state governors and 187 utility companies and data center developers have signed President Donald Trump's "ratepayer protection pledge," a White House initiative aimed at controlling spiraling electricity costs driven by the massive power demands of AI data centers.

According to The Associated Press, signatories include utility companies NextEra Energy, Duke Energy, American Electric Power, Southern Co., and Pacific Gas & Electric, as well as data center developers Equinix, Digital Realty, and Prologis.

Background of the Pledge

Trump first announced the pledge in late February during the State of the Union address. A week later, he hosted major AI hyperscalers — including Meta, Amazon, and OpenAI — at the White House, urging them to cover their own power requirements to help reduce electricity costs.

Energy Secretary Chris Wright stated in March that the initiative "will deliver more affordable, reliable, and secure energy for the American people." The president reiterated this during the event, saying: "Electricity bills for American families will actually come down. They're going to have a lot of electricity left over, and they'll put that into the grid."

Limited Impact So Far

Despite the White House's promises, the March pledge has had little to no effect on electricity rates across the country. Key developments include:

• PJM Interconnection, the nation's largest power grid operator, issued Maryland a $2-billion bill for grid upgrades to accommodate out-of-state AI data centers.
• Monitoring Analytics, an independent watchdog, reported that a 75.5% increase in power costs in the U.S.'s largest power region has been directly caused by data centers.

It remains unclear whether these cost increases represent long-term effects of AI infrastructure buildout predating the White House pledge. However, the administration appears to be doubling down by seeking commitments from states, utility companies, and data center developers.

Public Pushback and Local Bans

The American public is pushing back against data center developments amid reports of impacts on electricity costs, water quality, and noise pollution. Several jurisdictions have imposed temporary bans on data center developments, including:

• Seattle (home to Amazon and Microsoft)
• The state of New York

These developments threaten to derail the administration's AI policy, which has ordered grid operators to expedite AI data center applications.

Enforcement and Legislative Action

Critics argue that the ratepayer protection pledge is merely a promise and cannot be legally enforced. The Associated Press reports that California is attempting to pass legislation to codify these promises into law.

Oregon is currently the only state to have passed a law requiring developments using more than 20 megawatts of power to pay their fair share. The POWER Act, passed in April 2025 — nearly a year before Trump announced the ratepayer protection pledge — mandates that large electricity consumers' bills "reflect the true costs of their electric service." As a result, Portland General Electric (PGE), the state's largest power supplier, increased data center power bills by 30% while cutting residential costs by 1.3%.

Outlook

It is unclear whether any signatory states have similar legislation underway, or what steps data center developers will take to follow through on their promises. President Trump remains adamant that states should support data center development within their borders.

"You have to convince your community. You can't fight it. You have to go with it," Trump said. "If you don't take all that money, somebody else is going to take it. You might as well do it yourselves."