During the State of the Union address, the president announced that tech companies would enhance efforts to reduce the environmental impact of their data centers. President Donald Trump addressed Americans’ concerns over increasing electricity costs during his speech, stating that he has negotiated a “rate payer protection pledge” with major tech companies. This initiative requires them to build or finance new electricity generation for their data centers. Executives from Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI are expected to attend a March 4th event to formalize the pledge, according to Fox News.
Details regarding the pledge and its enforcement remain sparse. White House spokesperson Taylor Rogers noted the plan’s bold nature, specifying that these companies will generate, acquire, or secure their own power supplies for AI data centers. “We’re telling the major tech companies that they have the obligation to provide for their own power needs,” Trump stated.
Tech companies enhancing data centers for AI are already addressing energy needs. Both Anthropic and Microsoft have voluntarily committed to funding new power plants for their centers. These commitments require contracts with utilities or new policies from regulators to ensure adherence. Meta has agreed to fund three new gas-fired plants in Louisiana for its largest data center, though local residents are concerned about potential increases in electricity costs.
Additionally, tech firms have announced several agreements to develop next-generation nuclear reactors for powering data centers, though these technologies are not expected until the 2030s. Plans for new fossil fuel plants face delays due to turbine shortages. Household energy bills rose by 13 percent nationally in 2025, as reported by Climate Power. Rate increases stem from power grid upgrades and surging demand from data centers and other sectors. The Department of Energy anticipates a doubling or tripling of data center electricity demand by 2028.
Local resistance is another challenge for data center expansion, causing delays and cancellations across the U.S. In response, tech companies are promising to address community concerns. Rising electricity rates were pivotal in recent state elections, influencing Democrat Abigail Spanberger’s gubernatorial win in Virginia. As home to the world’s largest data center hub, Virginia played a crucial role. Spanberger emphasized that high costs were a widespread issue, echoed nationwide during her campaign.