U.S. President Donald Trump said on February 24, 2026, during his State of the Union address that major technology companies will be required to build their own power plants to support energy-intensive data centers. The move is aimed at protecting consumers from rising electricity bills.
The announcement comes amid growing local resistance to large data center projects across the U.S., which have been blamed for increased power demand and higher electricity costs.
“Tonight, I’m pleased to announce that I have negotiated the new rate payer protection pledge. You know what that is? We’re telling the major tech companies that they have the obligation to provide for their own power needs,” Trump said.
“We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed. So I’m telling them, they can build their own plant. They’re going to produce their own electricity. It will ensure the company’s ability to get electricity, while at the same time, lowering prices of electricity for you,” he said.
The President did not name the companies involved or provide details on how the policy would be implemented or enforced. According to sources familiar with the plan, the White House is expected to host technology companies in early March to formalise the effort.
The administration has backed the expansion of artificial intelligence to compete with China. However, the rapid growth of AI data centers and their impact on power prices have emerged as a political concern ahead of the November midterm elections.
Last month, PJM Interconnection, the largest power grid operator in the U.S., proposed that new large power users either bring additional electricity generation to the grid or limit consumption during periods of high demand.
Companies such as Anthropic and Microsoft have also announced voluntary steps to reduce the impact of their data centers on consumer energy costs.
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