Trump's plan for rising energy costs: Pump oil, make data centers pay

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Energy affordability was in the spotlight during President Trump’s lengthy and at times rambling State of the Union address Tuesday evening as the president promised to bring down electricity prices in an effort to assuage voter concerns about rising costs.The president announced a new “ratepayer protection pledge” to shield residents from higher electricity costs in areas where energy-thirsty artificial intelligence data centers are being built.Trump said major tech companies will “have the obligation to provide for their own power needs” under the plan, though the details of what the pledge actually entails remain vague.

“We have an old grid — it could never handle the kind of numbers, the amount of electricity that’s needed, so I am telling them they can build their own plant,” the president said.“They’re going to produce their own electricity ...

while at the same time, lowering prices of electricity for you.” The announcement comes as polling shows Americans are dissatisfied with the economy and concerned about the cost of living.Experts on both sides of the political spectrum have said the energy affordability issue could translate to poor outcomes for Republicans in the midterm elections this November, as it did in a few key races in New Jersey, Virginia and Georgia last year.

While Trump has focused on ramping up domestic production of oil, gas and coal, residential electric bills have been soaring — jumping from 15.9 cents per kilowatt-hour in January 2025 on average to 17.2 cents at the end of December, according to the U.S.Energy Information Administration.

Politics More than 30 congressional Democrats boycotted President Trump’s State of the Union address.Others attended alternative events.Through one year into his second term as president, Trump has vastly changed the federal landscape when it comes to energy and the environment, reve...