Utilities join pledge aimed at limiting AI data center power costs
Nearly 200 companies have signed a White House pledge that asks AI and energy firms to shield consumers from data center costs.
By James Whitfield · Staff Writer
3 min read
Major U.S. utilities and data center companies are joining a White House effort to keep AI-related power costs from reaching household and business electric bills. The move comes as data center demand has become a flashpoint in fights over grid capacity and rising electricity rates.
The Wall Street Journal reported that nearly 200 organizations have signed President Donald Trump’s “ratepayer protection pledge,” citing a list it obtained. Trump is expected to announce the latest signatories Thursday, according to the Journal.
The new participants include NextEra Energy, Duke Energy, Equinix and Digital Realty, the Journal reported. An unnamed White House official told the newspaper that companies now signed onto the pledge account for about 80% of electricity delivered to U.S. homes and businesses.
What the pledge says
The White House introduced the pledge in March as AI companies accelerated spending on data centers that require large amounts of electricity. According to the White House, the pledge calls on AI providers to cover costs tied to new infrastructure needed to train and run generative AI systems.
Google, Meta, Microsoft, Oracle, OpenAI, Amazon and xAI were among the companies whose leaders signed the pledge when it was announced, according to The Verge. At that event, Trump said technology companies needed help with public relations as opposition grew around data center construction and electric rates, The Verge reported.
The pledge gives utilities and technology firms a public answer to criticism that ordinary ratepayers could pay for grid upgrades built to serve AI workloads. It also gives the White House a policy response as local and state officials face pressure over proposed data center projects.
Concerns remain over enforcement
The pledge is voluntary and does not include penalties for companies that fail to follow it, according to The Verge. That limits how much protection it can provide without action from state utility commissions or other regulators.
Electricity prices are generally set through state regulatory processes and power markets, rather than by direct federal order, according to The Verge. That structure could make it difficult for the White House to ensure that costs tied to AI demand stay off consumer bills.
Opposition to data center growth has already affected projects in parts of the country. The Verge has reported that some projects have been scaled back or blocked after public pushback.
Grid costs tied to data center demand are also beginning to show up in regional power planning. PJM, the largest U.S. grid operator, is expected to add $6.3 billion in extra costs for consumers in 13 states because of data center demand, according to The Verge.
The latest signatories broaden the pledge from large technology companies to the energy firms and data center operators that must connect new facilities to the grid. Whether that commitment lowers bills will depend on how utilities, regulators and power markets handle the next wave of AI-driven electricity demand.
This story draws on original reporting from The Verge.