Yesterday, the White House issued a statement on the growing demand for energy driven by the artificial intelligence industry. The Ratepayer Protection Pledge calls on hyperscalers and other AI firms to ensure the demand for energy does not harm consumers, asking for a commitment to protect the population from energy price hikes.
A proclamation was included in the administration’s policy, signed by President Trump.
The pledge entails:
1. Building, Bringing, or Buying New Power Supply
WHAT: Companies will build, bring, or buy the new generation resources and electricity needed to satisfy their new energy demands, paying the full cost of those resources whether by building, or buying from, new or otherwise additive power plants. Where possible, these companies will also add more capacity that serves the broader public by increasing supply.
WHY: This advances self-sufficiency and protects Americans from higher prices.
2. Paying for New Power Delivery Infrastructure Upgrades
WHAT: Companies will pay for all new power delivery infrastructure upgrades required to service their data centers, including adequate network upgrade costs to ensure that these expenses are not passed on to the ordinary household.
WHY: This way, data centers can benefit all ratepayers and the grid.
3. Paying Whether They Use the Power or Not
WHAT: Companies will voluntarily negotiate new, separate rate structures with their utilities and relevant State governments wherever they build data centers. Importantly, they will pay these rates for the power and related infrastructure that are brought online to service their data centers, whether they use the electricity or not.
WHY: This will protect the American people from increased utility bills as a result of the development of these data centers.4. Investing in Local Job Creation and Workforce Development
WHAT: Companies will invest in the local communities in which they build data centers. This includes hiring from within the local community and establishing programs to develop relevant skills.
WHY: This allows all American workers to benefit from the oncoming technological boom at every step from construction to operation.
5. Contributing to Electric and Community Resilience
WHAT: Companies will coordinate with grid operators to contribute to a more reliable grid and, whenever possible, make available their backup generation resources at times of scarcity to prevent blackouts and power shortages in their communities.
WHY: Consumers will benefit from enhanced grid resilience from data center power resources in times of emergency.
Karen Kerrigan, Small Business & Entrepreneurship Council (SBE Council) President & CEO, issued a statement on the administration’s pledge, calling AI as helping to level the playing field for innovators and job creators. She said that as adoption accelerates, the infrastructure, including energy, must be delivered efficiently.
“The commitments made through the White House Ratepayer Protection Pledge help ensure that investments in the energy and computing infrastructure needed to power AI are made in ways that protect ratepayers while allowing innovation to move forward. For small businesses, affordable and reliable energy is a critical input cost. Ensuring that large-scale technology infrastructure investments do not shift costs onto households and small businesses is an important principle,” said Kerrigan.
She added that data centers are creating jobs, and hopefully, the pledge will be met favorably by the different states in lowering regulatory barriers.
“America’s leadership in AI will depend on an ecosystem that encourages private-sector investment, technological advancement, and open access to the tools that entrepreneurs rely on to innovate and grow,” Kerrigan said.
She commended the companies participating in the pledge as well as the administration’s leadership on the issue.
The pledge does not have legal force and is more about encouraging participants to strive not to drive costs higher for the populace. At the same time, multiple firms have signed onto the pledge. The list is below.
- Amazon
- Meta
- Microsoft
- OpenAI
- Oracle
- xAI