President Donald Trump urged senators to pass legislation he says would accelerate energy development, lower costs and protect electricity customers from data center infrastructure expenses.
Trump called for the approval of the American Affordability and Jobs Act, identified as S. 5653, in a Truth Social post on Sunday. He described the measure as a “BIG WIN” for U.S. energy independence and dominance, saying permitting reforms would allow pipelines, mines and power plants to be built faster.
The president said the legislation would also codify his “ratepayer protection pledge,” requiring data centers to pay for their own electricity and invest in surrounding communities.
He also urged Americans to contact their senators and support the bill, warning that China could attract data centers rejected by the United States.
Trump’s Energy Agenda
The proposal follows a broader Trump energy agenda that has emphasized fossil fuel production and faster approvals. After returning to the White House, he declared a national energy emergency and promoted “drill, baby, drill.”
In September, Trump urged oil executives to expand U.S. refining capacity to lower fuel prices amid Iran war disruptions. However, building refineries would cost billions of dollars and take years, making the proposal a difficult sell for companies with limited financial incentives and shareholder obligations. GasBuddy analyst Patrick De Haan said oil producers have little reason to prioritize lower gasoline prices.
Democratic Takeover Threatens Data Center Plans
The electricity demand from AI data centers has also become a bipartisan policy concern. In September, the House recently passed the Ratepayer Protection Act by a 417-3 vote.
According to a Department of Energy-backed report from Lawrence Berkeley National Laboratory, data centers accounted for 4.4% of U.S. electricity consumption in 2023, a share that could rise to as much as 12% by 2028.
Congressional Budget Office (CBO) highlighted that the bill covers nonresidential data centers with peak demand of at least 100 megawatts at a single facility, but leaves states free to adopt or reject the proposed federal standards.
Former Goldman Sachs CEO Lloyd Blankfein echoed Trump and warned that widespread opposition to data center projects is “a gift to China.” His comments come as technology analyst Dan Ives estimates that a Democratic takeover of Congress could derail 10% of planned U.S. data center projects, slowing the AI infrastructure buildout.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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