President Donald Trump used the State of the Union address on Tuesday night to announce deals with major tech companies to ensure data centers cover more of the costs needed in powering artificial intelligence.
“We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed. So I’m telling [companies], they can build their own plant and produce their own electricity,” Trump said during his speech.
Trump said that these tech companies “have the obligation to provide for their own power needs. … I’m telling them they can build their own plant. They’re going to produce their own electricity.” Reports ahead of the speech suggested that the policy is referred to as “rate payer protection pledges.
James Burnham, who works at government affairs for XAI, said, “Proud to be part of this initiative. @xai has never caused our neighbors’ electricity bills to rise. When our team builds supercomputers, that includes power. And when our supercomputers go into orbit, there will be even more earth power for the earthlings.”
Microsoft praised the agreements on Tuesday night, and Google and Anthropic announced these cost-conscious pledges ahead of Trump’s address to Congress.
Energy Secretary Chris Wright said that “brand-name” companies have agreed to the program.
“We’ve had a lot of dialogues with data center developers to say, ‘You’ve got to have the American people on your side,’” Wright continued.
Wright remarked, “The president’s very keen about the United States leading in AI, but it’s got to be a win for America — not just the Americans that use that AI.”
One White House official said that the companies have committed to “pay their own way” to keep electricity costs low.
The White House and Trump have focused on affordability ahead of the pivotal 2026 midterm elections.
“The President will proudly tout his Administration’s many record-breaking accomplishments, and also [lay out] an ambitious agenda to continue bringing the American Dream back for working people,” White House press secretary Karoline Leavitt said.
