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“(Technology companies) need some PR help because people think if they build a data center, their electricity rates are going to go up,” Trump said during the event. “Some centers have been rejected by local communities for this reason, and now I think it will be the opposite.”
“People think that if they build a data center, their electricity rates will go up.”
According to the announcement, the seven companies attending the event “accepted the terms of the Taxpayer Protection Pledge” and that “the commitments contained therein advance U.S. national policy.” However, the report adds that companies will still need to “voluntarily negotiate” agreements with utilities and state governments.
The president said the companies would be responsible for adding capacity to the network “wherever possible.” He also said that they would cover the costs of upgrading the existing energy infrastructure to meet the increasing demand for electricity. Trump added that companies should negotiate separate rate structures with utilities, in an effort to ensure they pay a fair price for all the additional stress a data center puts on the grid. Businesses will be on the hook for these costs even if data centers cannot use all the additional electricity generated. This is a key measure that could address concerns that local communities will be left holding power plants and new transmission lines that become stranded assets if the hype around AI fades and data center projects fail.
Trump said the tech giants “will use their infrastructure to contribute power to local grids in times of need.” Reducing the amount of power a data center uses when electricity demand peaks — during a severe winter storm or heat wave, for example — is a measure that can help prevent power outages during disasters. this year Winter storms raised concerns About how new data centers could increase pressure on power grids and Raising electricity prices during disasters. The state of Texas passed a law Last year the local network operator was granted authority Reducing energy use in data centers during emergencies. The pledge itself is more vague, stating that companies “will, whenever possible, make their backup generation resources available in times of scarcity.”
During the event, Gwen Shotwell, President and Chief Operating Officer of SpaceX (which… It recently announced a merger with XAI with the idea of pursuing plans to launch data centers into space), said that XAI will develop a 1.2 gigawatt power plant as the primary power source for the supercomputer. The company will likewise work to develop power generation “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 already has He threatened to sue XAI twice Due to pollution caused by temporary gas turbines it installed in Tennessee and Mississippi to power its data centers.
The pledge also includes a commitment to hiring from local communities where data centers are under construction. Meta announced today that it has launched a pilot program in Ohio to train fiber technicians, including some who attended today’s event.