200 US utility firms join Trump electricity pledge as data center electricity use expected to quadruple by 2035 but does the President's pledge have the teeth to regulate electricity pricing?

Date:
Wed, 22 Jul 2026 12:05:00 +0000

Description:
The huge rise in consumer electricity pricing across the US has largely been fueled by data center construction and grid updgrades to connect them.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter US data center electricity
usage is expected to quadruple by 2035 There has been a surge in signups for Trump's Ratepayer Protection Act Residential electricity rates have risen by 25% over the past four years US data centers are expected to use four times more electricity by 2035 than they currently use, bringing the total consumption to one fifth of the country's electricity production.

In an attempt to quell the national dissatisfaction with AI and the data centers needed to support capacity, over 200 entities have joined President Trumps pledge to not pass on rising electricity costs to consumers. But
Trumps pledge is entirely voluntary, and has little control over electricity pricing which is decided by state regulators and electricity buyers and sellers - and in some states with huge data center buildouts electricity pricing has already risen significantly. Latest Videos From Watch full video here: Electricity consumption set to quadruple A new report by BloombergNEF seen by TechCrunch predicts that global AI compute will rise to as much as
200 gigawatts over the next decade, with most of it concentrated in the US. Additionally, many already strained power grids across the US will struggle
to handle new data center connections without huge infrastructure buildouts. Current infrastructure buildouts have seen the US government seize private property from landowners using eminent domain .

The PJM Interconnection across Virginia and Illinois is expected to see 34%
of its electricity go to data centers over the next decade. In the same timespan, Texas ERCOT will have to divert 22% of its electricity to data centers. You may like AI boom triggers new battles over electricity infrastructure costs This new bipartisan act wants to force US AI companies
to pay for the energy they use Irelands data center electricity consumption rises 360% in ten years, consumers as much power as every home combined

There is one caveat, however. The BloombergNEF report is likely a
conservative estimate. Compared to a report released in December, BloombergNEFs new electricity usage estimates are 83% higher than the
previous prediction.

The strain caused by the buildout of AI data centers is even causing a rift between utility companies and grid operators. American Electric Power threatened to pull out of the PJM interconnection due to the supply-demand imbalance causing prices to rise by as much as 76% in the last year. Are you
a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting
your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Trump pledges to stop electricity price rises caused by big tech According to exclusive WSJ reporting, there has been a huge surge in signups to Trumps Ratepayer Protection Pledge, which is a voluntary
commitment to not pass on the rise in electricity prices caused by AI data center buildouts to consumers. The pledge encourages private companies to build, bring, or buy new electricity sources.

Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI were among the
first to sign up back in March 2026, but since then the nations biggest utilities and data centers developers have also joined the pledge, including NextEra Energy, Duke Energy, Equinix and Digital Realty.

New commitments for the Ratepayer Protection Pledge are expected to be announced by Trump at an event by the Environmental Protection Agency, but Trumps track record on environmental protection has been less than stellar. New fossil fuel energy production facilities can now expedite their application process, and Trumps drill, baby, drill policy has significantly reduced funding and support for clean and renewable energy sources , which
are far cheaper than their fossil fuel counterparts. What to read next The data center debate rumbles on - here are the numbers behind People Over
Profit Data centers could hike power costs in some states over 50% by 2030
The new battle ground for scaling and protecting margins: AI servers set to consume more power than every conventional data center by 2027

Despite the pledge not to pass on the rising costs of electricity to consumers, there have already been significant consumer electricity price increases across the US.

According to ElectricChoice statistics , average US residential electricity rates are up 7.4% year-over-year, with Ohio alone seeing a 19.4% increase in the same period. 13 US states have seen double digit increases in year-over-year electricity pricing, while only 5 states have seen pricing
stay the same or decrease. (Image credit: Electric Choice) In the past four years, residential electricity rates have risen by 25%, with grid modernization investments and record data center construction cited as two of the main reasons for the rapid growth in pricing.

According to Cleanview , the US currently has 1,214 operating data centers with a further 1,714 planned or in construction. (Image credit: Cleanview) A bill that seeks to actually hold tech companies responsible for their contributions to the increase in consumer electricity prices has been introduced to congress, called the Ratepayer Protection Act . The bipatisan bill looks to introduce a large load standard requiring tech companies to
bear the cost of the energy they use, alongside upgrades to the local grids they connect to. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/200-us-utility-firms-join-trump-electricity-pled ge-as-data-center-electricity-use-expected-to-quadruple-by-2035-but-does-the-p residents-pledge-have-the-teeth-to-regulate-electricity-pricing


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