Tech giants make non-binding White House pledge to cover AI data center energy costs
Google, Microsoft, Meta, Amazon, Oracle, xAI and OpenAI signed a voluntary pledge at the White House to cover the electricity costs of their data centers themselves. The commitment is not legally binding. The goal is to prevent the massive energy demand of AI data centers from driving up electricity bills for households and small businesses, Reuters reports.
President Trump first announced the so-called "Ratepayer Protection Pledge" during his State of the Union Address. The companies promise to secure their own power sources or expand existing plants and cover grid upgrade costs.
Critics like Jon Gordon of Advanced Energy United doubt that new power plants can be built fast enough to relieve the grids, according to Reuters. Especially since the administration is focusing on natural gas rather than faster-to-build solar and wind energy. The initiative comes ahead of the November midterm elections, where rising energy costs are a key voter concern.
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