Washington DC [US], February 25 : In a move aimed at balancing the rapid expansion of Artificial Intelligence infrastructure with consumer energy costs, President Donald Trump in his State of the Union Address, announced a new agreement with major technology companies to allow the construction of dedicated power plants for AI data centres.
Trump said the agreements are designed to prevent rising electricity demand from driving up utility bills for households and small businesses.
"Many Americans are also concerned that energy demand from AI data centres could unfairly drive up their electric utility bills. Tonight, I'm pleased to announce that I have negotiated the new rate payer protection pledge," he said
The President said the pledge would require large technology firms building data centres to generate their own electricity rather than relying on local power grids that serve residential and commercial customers. Artificial intelligence systems, which require vast computing power to train and operate advanced models, are increasingly dependent on massive data centres that consume significant amounts of energy.
Under the new framework, companies planning major AI infrastructure projects would be permitted to build on-site or nearby power generation facilities to meet their needs. According to Trump, the goal is to shield surrounding communities from price spikes that can occur when large-scale industrial users place additional strain on existing energy systems.
The President said, "We're telling the major tech companies that they have the obligation to provide for their own power needs" so that "no one's prices will go up."
Data centres already account for a growing share of U.S. electricity consumption, and that figure is expected to rise as companies race to expand AI capabilities.
"This is a unique strategy never used in this country before. We have an old grid, it could never handle the kind of numbers, the amount of electricity that's needed. So I'm telling them they can build their own plant, they've got to produce their own electricity,"he said.
Earlier in his speech, Trump claimed that in the nine months since he became the President, "no illegal alien" has been able to enter the United States.
"In the past nine months, zero illegal aliens have been admitted to the United States. We will always allow people to come in legally, people who will love our country and will work hard to maintain it. The flow of deadly fentanyl across our border is down by a record 56 per cent in one year. Last year, the murder rate saw its single largest decline in recorded history. This is the biggest decline. The lowest number in over 125 years," Trump said.
"Tonight, after just one year, I can say with dignity and pride that we have achieved a transformation like no one has ever seen before, and a turnaround for the ages. We will never go back to where we were just a short time ago," he added.