Technology Trump signs agreement with Big Tech to cover data center electricity costs by Rachel Frazin and Miranda Nazzaro - 03/04/26 5:10 PM ET by Rachel Frazin and Miranda Nazzaro - 03/04/26 5:10 PM ET Share ✕ LinkedIn LinkedIn Email Email NOW PLAYING President Trump and major tech firms announced an agreement Wednesday to have Big Tech companies cover the cost of the electricity they consume as development of artificial intelligence shows no signs of stopping.   Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon have agreed to sign onto the “Ratepayer Protection Pledge,” the White House said Wednesday, describing the pact as an agreement to build, bring or buy new power to support their data centers in order to prevent higher electricity costs for consumers.  Trump, during Wednesday’s roundtable with the companies’ leaders, said that companies would make five promises in accordance with the pact: This includes a commitment to provide or pay for all power generation and electricity needed for AI projects, along with adding electricity generating capacity to the grid through new power plants when possible. Companies also agreed to negotiate separate rate structures with different utilities, invest in local communities for workforce development, and utilize their infrastructure to provide backup power to local grinds when needed.  “In short, America’s largest and richest tech companies will be funding a colossal expansion of U.S. energy,” Trump said.  He also said that the federal government would quickly approve permits for the plants.  The move comes as concerns mount over data centers’ impact on customer electricity rates.  Trump said in his speech that data centers “need some PR help, because people think that if a data center goes in, their electricity prices are going to go up.” Data centers consume large amounts of electricity, which experts say could lead to higher electric bills as companies race to meet higher demand, including through the construction of new infrastructure. Experts say the data center construction boom also raises the risk of blackouts if there is not enough power to go around as massive new consumers plug into the grid. While providing their own power could help defray some of the potential price impacts for consumers, Trump did not specify in his Wednesday remarks how the government would hold Big Tech companies to the pledge. The president was joined by numerous technology leaders along with Energy Secretary Chris Wright, House Speaker Mike Johnson (R-La.), Sen. Jon Husted (R-Ohio), White House Office of Technology and Policy Director Michael Kratsios, White House AI and cryptocurrency czar David Sacks, and other lawmakers.  The White House and various technology companies have sought to limit the public blowback over data center demands in recent months, including through other pledges.  Microsoft announced a five-pronged “community first” AI infrastructure, including a vow to “pay our own way” to avoid the costs being passed onto consumers. OpenAI also included energy-related commitments for the Stargate Project, the massive Trump administraton data center expansion intitiative, stating at the time “we can only achieve our mission by being good neighbors.”  Wednesday’s announcement appears to be in line with Microsoft’s prior pledge, but seems to be a more explicit commitment than the past promises made by OpenAI. The push reflects a balance the administration is trying to strike — keeping a pro-business and innovation stance while also warding off increasing backlash to data centers. The administration has sought to bolster the technology, moving to speed up approvals for data centers , including by creating a “categorical exclusion” curtailing environmental reviews for data center projects.  It has also sought to expedite approvals of new chemicals expected to be used for data centers and pushed to try to get data centers connected to the power grid more quickly.  Mark Wolfe, the executive director of the National Energy Assistance Directors’ Association, told The Hill that the announcement was “a step in the right direction.” “The details are important, though,” he added, specifically noting that the details of the rates that companies negotiate will matter.  “The summer cooling season is rapidly approaching, and we need to get rates under control before that happens,” added Wolfe, whose  organization represents state directors of the Low-Income Home Energy Assistance Program. “Otherwise, you’re looking at potentially a record cost of summer cooling.” Dan Ives, analyst for Wedbush Securities, said in a memo following the event that while the initiative reduces a “major headache” for the Trump adm