President Donald Trump announced during Tuesday night’s State of the Union address that major technology companies have agreed to cover more of the electricity costs required to power artificial intelligence data centers. The move is designed to prevent rising energy demands from driving up utility bills for American families. The policy is being described as a “ratepayer protection” initiative.
President Trump said the nation’s aging power grid cannot handle the massive electricity loads required by modern AI systems. He told lawmakers that companies building large data centers will now be expected to generate their own power rather than relying solely on public infrastructure.
“We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed,” president trump said. He added that companies can build their own plants and produce their own electricity, stressing that they have an obligation to provide for their own power needs.
Energy Secretary Chris Wright said several major firms have agreed to the program. He emphasized that AI leadership must benefit the broader country, not just technology companies. Wright said the administration has engaged in ongoing discussions with data center developers to ensure the American public is not burdened by higher electricity costs.
James Burnham of xAI expressed support for the initiative, stating that his company’s supercomputing operations include independent power planning. Microsoft praised the agreement, while Google and Anthropic announced similar cost-conscious pledges ahead of the address.
A White House official said participating companies have committed to “pay their own way” in order to shield consumers from rising rates. The administration has placed affordability at the center of its policy agenda as the 2026 midterm elections approach.
White House Press Secretary Karoline Leavitt said the president would highlight record-breaking accomplishments while outlining plans to strengthen economic opportunity for working Americans.
The initiative underscores the administration’s dual focus on advancing American AI dominance while protecting households from the economic strain that could result from surging energy demand. As AI development accelerates, the balance between innovation and infrastructure capacity remains a central policy challenge.
