“(Tech companies) need some PR help because people think if the data center goes away, their electricity prices are going to go up,” Trump said during the event. “Some centers were rejected by communities for this and now I think it’s going to be the opposite.”
“People think that if the data center goes away, their electricity prices will go up.”
According to the proclamation, the seven companies attending the event “have accepted the terms of the Ratepayer Protection Pledge” and “the commitments they contain affect the national policy of the United States.” However, it also said that companies would still need to “voluntarily negotiate” with utilities and state governments.
The president said companies would be responsible for adding capacity to the grid “where possible.” They also said they would cover the cost of upgrading existing power infrastructure to meet increasing power demand. Trump said companies should negotiate different rate structures with utilities, an effort to ensure they pay a fair rate for whatever additional strain a data center puts on the grid. Even if data centers do not stop using all the excess electricity produced, companies will still be responsible for these costs. This is an important measure that could allay fears that if the hype around AI dies down and data center projects fail then local communities will be left on the tab for new power plants and transmission lines that will become stranded assets.
Trump said the tech giants “will use their infrastructure to back up power to local grids in times of need.” Reducing how much electricity a data center uses when power demand peaks – for example, during a severe winter storm or heat wave – is one measure that can help prevent power outages during disasters. This year’s winter storms have raised concerns about how new data centers could increase pressure on the power grid and drive up electricity prices during disasters. Texas passed a law Last year the local grid operator was given the right to Cut data centers’ energy usage during emergencies. The pledge itself is more vague, stating that the companies will “make their backup generation resources available in times of shortage whenever possible.”
During the event, Gwynne Shotwell, president and COO of SpaceX (which recently announced a merger with XAI with the idea of pursuing plans to shoot data centers into space) said that XAI will develop a 1.2 gigawatt power plant as the primary energy source for its supercomputers. The company will similarly develop greater power output for “each additional data center,” Shotwell said. xAi also plans to expand its Megapack installation to provide backup power to Memphis, Tennessee and Southaven, Mississippi. The NAACP has already XAI threatened to sue twice In response to pollution from floating gas turbines it has installed in Tennessee and Mississippi to power its data centers.
The pledge also includes a commitment to recruit from local communities where the data centers are under construction. META announced today that it has launched a pilot program in Ohio to train fiber technicians, including some of the people attending today’s program.
