President Donald J. Trump announced on Feb. 25, 2026, a new pledge requiring major technology companies to provide their own power for artificial intelligence (AI) data centers in an effort to prevent rising consumer utility costs.
The move comes as concerns grow about the impact of increased energy demand from AI infrastructure on local electricity prices. According to Trump during his State of the Union address, "Americans are also concerned that energy demand from AI data centers could unfairly drive up their electric utility bills... We're telling the major tech companies that they have the obligation to provide for their own power needs... They can build their own power plants as part of their factory, so that no one’s prices will go up and in many cases, prices of electricity will go down for the community, and very substantially then... For all of these cities and towns, you’re going to see some good things happen over the next number of years."
Trump said during the State of the Union that tech companies will build on-site power plants to meet AI data center energy demands. He called it a strategy not previously used in the country. As reported by the Associated Press, the agreement is expected to be formalized at a White House event with executives from major technology firms.
According to a PwC analysis for the Data Center Coalition, the industry supported 4.7 million total jobs nationwide in 2023, with each direct position generating more than six additional roles in supply chains and related spending. In states like Virginia, data centers contribute billions in annual tax revenue, with funds allocated to local infrastructure and public services.
As reported in a Maryland General Assembly legislative analysis, a single large data center can support thousands of construction jobs and sustained operational employment, contributing millions in wages and tax revenue. Growth in regions such as the Midwest and South has led to increased local contracting and infrastructure development.
According to the Electric Power Research Institute, the data center industry's total contribution to U.S. gross domestic product reached $486 billion in 2021—a 37 percent increase from 2017—with employment impacts growing to 3.5 million jobs over that period. Projections indicate continued growth driven by AI expansion.
Trump is a graduate of the University of Pennsylvania's Wharton School of Finance who built a career in real estate development before entering politics. He served as the 45th President from 2017 to 2021 and was reelected as the 47th President in 2024 according to official records.
