WASHINGTON — President Donald Trump on Tuesday unveiled a “ratepayer protection pledge” during his State of the Union address, promising to address rising electricity costs linked to the proliferation of energy-intensive artificial intelligence data centers. The pledge, details of which remain sparse, would require tech companies to “have the obligation to provide for their own power needs,” potentially through building their own power plants, according to the president.
The announcement comes as concerns about economic affordability mount, with polling data indicating voter dissatisfaction and potential repercussions for Republicans in upcoming elections, mirroring recent results in states like New Jersey, Virginia, and Georgia. While Trump has prioritized increased domestic fossil fuel production, residential electric bills have steadily climbed, rising from an average of 15.9 cents per kilowatt-hour in January 2025 to 17.2 cents by the end of December, according to the U.S. Energy Information Administration.
Trump’s second term has marked a significant departure from the Biden administration’s energy policies, reversing investments in renewable energy and electrification initiatives outlined in the Inflation Reduction Act and the Bipartisan Infrastructure Law. Funding for solar programs has been slashed, federal tax credits for electric vehicles eliminated, and grants for offshore wind projects canceled, with some projects nearing completion facing attempts to be halted along the East Coast. He doubled down on his “drill baby drill” agenda, touting lower gasoline prices and increased oil production, including new imports from Venezuela.
The administration has also targeted California, a long-standing leader in environmental regulation. Last year, Trump moved to block the state’s authority to set stricter tailpipe emission standards than the federal government, a move that underpinned California’s 2035 ban on the sale of new gas-powered cars. Funding for California’s clean hydrogen energy development was cut by $1.2 billion, while similar projects in states that voted for him retained funding. In November, the administration announced plans to open the Pacific Coast to oil drilling for the first time in nearly four decades, a decision California officials vowed to contest.
The president’s efforts to deregulate have extended to the national level. Earlier this month, the Environmental Protection Agency (EPA) repealed the 2009 endangerment finding, which affirmed that greenhouse gases pose a threat to human health and the environment – a move officials described as the “single largest act of deregulation in U.S. History.” The EPA also loosened emissions guidelines for coal power plants, including those concerning mercury and other pollutants. According to a tracker maintained by the Natural Resources Defense Council, the administration has taken or proposed over 430 actions impacting the environment, public health, and climate change [Natural Resources Defense Council].
These actions are part of a broader effort to remove what the administration deems “burdensome, ideologically motivated and expensive” regulations, as outlined in Executive Order 14179 of January 23, 2025, which revoked a previous attempt to “paralyze” the AI industry [White House Executive Order]. The administration argues that excessive state-level regulation hinders innovation, potentially forcing AI models to produce inaccurate results to avoid accusations of “algorithmic discrimination,” as exemplified by a new Colorado law.
The opposition’s response to the State of the Union underscored the importance of energy affordability. Virginia Governor Abigail Spanberger, in her rebuttal, emphasized her commitment to expanding solar energy and exploring technologies like fusion, geothermal, and hydrogen, noting that Virginia is home to over a third of the world’s data centers.
The long-term impact of Trump’s data center pledge remains unclear, with critics like Jesse Lee, senior advisor to Climate Power, dismissing it as a “toothless, empty promise.” The administration has not yet detailed how the pledge will be enforced or what specific measures will be taken to ensure tech companies meet their own power needs, leaving open questions about its effectiveness in lowering electricity costs for consumers.
