Trump announced tech firms must build their own power plants for data centres.
The move aims to prevent rising electricity bills for consumers.
White House plans early March meeting to formalise the initiative with companies.
U.S. President Donald Trump has told major technology companies to build their own power plants for their data centres, a measure meant to protect consumers from rising bills.
According to Reuters, he made the remarks on Tuesday 24 February 2026 during his State of the Union address in the House Chamber of the U.S. Capitol in Washington, D.C.
"Tonight, I'm pleased to announce that I have negotiated the new rate payer protection pledge. You know what that is? We're telling the major tech companies that they have the obligation to provide for their own power needs," he said.
"We have an old grid. It could never handle the kind of numbers, the amount of electricity that's needed. So I'm telling them, they can build their own plant. They're going to produce their own electricity. It will ensure the company's ability to get electricity, while at the same time, lowering prices of electricity for you," he said.
The announcement comes amid growing local opposition to energy-hungry data centre projects around the country blamed for a jump in electricity costs, as reported by Reuters.
He did not name the companies involved or provide details on how the plan would be implemented or enforced.
The White House is expected to host companies in early March to formalise the effort, Reuters reported, according to two sources familiar with the plan.
The Trump administration supports efforts to advance artificial intelligence in competition with China, but the impacts of the rapid proliferation of AI data centres on power prices have become a potential vulnerability for Republicans ahead of the November mid-term elections.
PJM Interconnection, the largest power grid operator in the U.S., last month unveiled a plan in which new large power users would either bring their own new generation to the grid or limit their usage when the system is stretched.
Companies such as Anthropic and Microsoft have also voluntarily announced initiatives to limit the impact of data centres on consumer energy prices.
(With inputs from Reuters)
