On Tuesday night, President Donald Trump said major technology companies should generate their own electricity for AI data centers to prevent higher power bills for consumers.
Trump Unveils ‘Rate Payer Protection’ Plan
During his State of the Union address, Trump announced what he called a “Rate Payer Protection pledge,” saying large tech firms must take responsibility for their energy needs.
“We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed,” Trump said. “So I’m telling them, they can build their own plant. They’re going to produce their own electricity.”
He argued the move would both secure power for companies and help keep household electricity costs down.
AI Data Centers Driving Record Demand
The development comes as demand for electricity surges due to rapid growth in artificial intelligence infrastructure.
The U.S. added a record 10 gigawatts of new data center capacity in 2025, with December marking the strongest month on record.
Overall power demand rose 2.8% year over year, the fastest pace in two decades.
More than half of regional power markets are now operating near tight supply conditions.
The White House is expected to host technology companies in early March to discuss details of the plan, Reuters reported, citing people familiar with the discussions. The administration did not name specific firms or outline enforcement measures.
Industry Already Moving Toward Self-Supply
Some companies have already signaled they are prepared to invest in their own energy resources.
In January, Amazon.com Inc. (NASDAQ:AMZN) CEO Andy Jassy said the company will fund its growing power needs, while Microsoft Corp (NASDAQ:MSFT) has made similar commitments.
Grid operator PJM Interconnection has also reportedly proposed that large new users bring their own generation or reduce consumption during periods of strain.
AMZN is showing a downward price trend across short, medium and long-term timeframes and carries a weak Momentum score, according to Benzinga’s Edge Stock Rankings.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Andrew Leyden
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