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Tech giants pledge to cover data center electricity costs
05 Mar 2026

Seven major tech companies have signed a "rate payer protection pledge" with President Donald Trump.

The companies are Google, Meta, Microsoft, Oracle, OpenAI, Amazon, and xAI.

The move comes amid concerns over rising electricity rates due to the establishment of new AI data centers.

The pledge commits these firms to bear the cost of electricity for their energy-intensive data centers.

Companies will pay for upgrades to power delivery infrastructure
Pledge details

The proclamation signed by Trump at a roundtable event, states that these companies will "build, bring, or buy the new generation resources and electricity needed to satisfy their energy demands."

They will also pay for all upgrades to power delivery infrastructure required for their data centers.

This comes as part of an effort by tech companies to quell opposition against data centers that consume large amounts of electricity.

Firms will still have to negotiate agreements with utilities
Negotiation terms

The proclamation also states that while the companies have accepted the terms of the Ratepayer Protection Pledge, they will still have to "voluntarily negotiate" agreements with utilities and state governments.

Trump has said these firms will be responsible for adding capacity to the grid "where possible."

They are also expected to cover costs of upgrading existing power infrastructure to meet growing electricity demand.

Separate rate structures with utilities suggested by Trump
Rate negotiations

Trump has also suggested that these companies should negotiate separate rate structures with utilities.

This is an attempt to ensure they pay a fair price for the additional pressure their data centers put on the grid.

The companies would be liable for these costs even if their data centers don't use all the extra electricity generated.

Tech companies to contribute backup power to local grids
Backup commitment

The tech giants have also, Trump said, committed to "use their infrastructure to contribute back up power to local grids during times of need."

This is a measure that could help prevent power outages during disasters.

However, the pledge only vaguely states that companies would "whenever possible, make available their backup generation resources at times of scarcity."

xAI plans to build a power plant for its supercomputer
Power development

Gwynne Shotwell, President and COO of SpaceX, revealed that xAI will develop a 1.2 gigawatt (GW) power plant as its supercomputer's primary power source.

The company also plans to build as much power generation for "every additional data center."

xAI intends to expand its Megapack installation to provide backup power to Memphis and Southaven.