During Monday evening’s State of the Union address, President Trump called on Big Tech to sign a “ratepayer protection pledge” that would obligate them to supply and pay for their own energy needs as electricity costs surge across the nation. Next week, representatives from Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), Tesla (TSLA), and OpenAI will meet with Trump to sign the pledge.
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New trading tool for QQQ bulls“President Trump is committed to ensuring American AI dominance while simultaneously lowering costs for working families,” said White House spokeswoman Taylor Rogers.
AI Power Demand Drives Electricity Prices Higher
The pledge won’t be legally binding, although administration officials believe that it could still encourage the companies to take responsibility for their growing energy needs and reduce pressure on the power grid.
Increased energy demand from data centers that power AI contributed to the average retail price of electricity rising by 6% year-over-year to 17.24 cents per kilowatt-hour in December. 44 states, as well as Washington, D.C., experienced higher prices from a year ago, according to the U.S. Energy Information Administration.