US utility companies pledge to protect consumers from AI energy costs
Nearly 200 US utility and data center companies have signed President Trump's "rate payer protection pledge" to ensure AI infrastructure costs are not passed on to consumers.
Major US utility companies and data center developers have promised to shield consumers from potential electricity rate hikes driven by the AI boom. According to a report by The Wall Street Journal, nearly 200 organizations have signed President Donald Trump's "rate payer protection pledge," designed to protect average citizens from footing the bill for AI infrastructure.
Trump is expected to announce the new signatories on Thursday, including NextEra Energy, Duke Energy, Equinix, and Digital Realty, based on a list obtained by The WSJ. An unnamed White House official told the publication that the committed entities now account for about 80% of all power delivered to homes and businesses across the United States.
The pledge was introduced in March and contains several vague commitments for AI providers to bear the upfront costs of new infrastructure needed to train and run generative AI models. It was originally signed by leaders from Google, Meta, Microsoft, Oracle, OpenAI, Amazon, and xAI. During the announcement, Trump noted that tech companies "need some PR help" to quell backlash over data center projects and rising electricity rates.
Despite the pledge, public and bipartisan concerns remain high. Some data center projects have been downsized or blocked in response to the backlash. Additionally, PJM, the largest U.S. electrical grid operator, now expects to add $6.3 billion in extra costs for consumers across 13 states due to data center demand.
Enforcing the pledge will be challenging because energy prices are typically set by state regulators and electricity traders, not the federal government. The pledge is voluntary and carries no penalties for non-compliance, making it little more than a symbolic promise.
