Major tech companies sign pledge to lower rates, strengthen grids and spur jobs

By EPN Staff

Major technology companies such as Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon have committed to President Donald Trump’s Ratepayer Protection Pledge. They will fund or build their own power generation for data centers to ensure that the computer technology does not increase demand from power companies and raise electricity rates for households. Data centers contain powerful computers necessary for artificial intelligence (AI), cloud storage and other programs. However, they require a tremendous amount of energy to operate them.

“Amazon is proud to have signed the Ratepayer Protection Pledge at the White House. We welcome the Administration’s leadership on this issue, and the pledge’s commitments which establish an important baseline that will protect ratepayers and enable responsible, long-term energy partnerships that strengthen the grid and communities where data centers operate,” said Amazon Web Services CEO Matt Garman.

Under the pledge, companies agreed to negotiate separate rates with utilities and state government agencies and to pay for their electricity and infrastructure built to serve their needs. Additionally, companies will work with grid operators to ensure adequate backup generation in case of emergency. They commit to hiring and training workers within the communities where they are building data centers. 

Why it matters 

Residential electricity rates have risen 6 percent over the past year, due in large part to the building of data centers and electrification efforts. U.S. data centers used 22% more power last year than they did the year before. Electricity demand could triple by 2035 as more data centers are constructed. 

Frustrated consumers resent the higher prices. With more than 4,000 data centers operating around the country, some communities are pushing back by blocking the construction of new centers. Rising electricity rates contributed to the 2025 election results in New Jersey and Virginia, where candidates Mikie Sherrill and Abigail Spanberger campaigned to lower electricity rates. 

Recognizing the value of innovation to the economy, science and medicine, Trump proposed pledge in his 2026 State of the Union address.

“We’re telling the major tech companies that they have the obligation to provide for their own power needs,” he said. “They can build their own power plants as part of their factory, so that no one’s prices will go up, and in many cases, prices of electricity will go down for the community, and very substantially then.”

The bigger picture

Recognizing the need for more resources, several tech companies have already made innovative agreements with power companies and state governments to develop their own energy sources. Amazon, Google, and Oracle, for example, are cooperating with power companies to develop next-generation small modular nuclear reactors. Microsoft is working with Constellation to bring the Three Mile Island nuclear plant back online to provide power for its data centers. 

Strengthening electricity grids and increasing reliable electricity generation have been goals of the Trump Administration since taking office. Over the past year, the administration has incentivized greater energy production from nuclear, natural gas, coal, geothermal and other power sources through grants, loans, deregulation, and investments in the science of energy, American raw materials, and American talent.