Donald Trump expands data center pledge to curb AI power costs

President Donald Trump announced an expansion of his voluntary Ratepayer Protection Pledge, now signed by more than 300 utilities, 23 governors and major tech firms such as Microsoft, Google and OpenAI. The pledge obliges data‑center developers to build or purchase their own electricity and to cover the full cost of new delivery infrastructure, aiming to keep AI‑related power expenses off residential bills. Southern utilities cite early benefits, including a roughly $50 annual reduction in Georgia residential rates and the creation of about 2,500 jobs linked to a new Amazon data center in North Carolina.

Critics argue the pledge is non‑binding and lacks enforcement mechanisms. Sierra Club organizer Elisa Owen warned that without detailed marginal‑cost studies, it is unclear how costs will be allocated. In Kentucky, utilities including Kentucky Power, Louisville Gas & Electric and Duke Energy have signed the pledge, but local officials and activists raised concerns as proposed data‑center projects, such as TeraWulf’s two sites, could demand up to 1,500 megawatts—comparable to the region’s largest power plants. The state Public Service Commission may require cost‑allocation studies before approving such projects, highlighting the limited federal jurisdiction over state‑level data‑center development.