US President Donald Trump on Monday announced that big technology companies should pay for the electricity used by their massive data centres, instead of passing the cost on to everyday Americans. Speaking about rising power bills, Trump said his administration has been talking to Microsoft to make sure consumers “don’t pick up the tab” for these energy-hungry facilities.

US tech companies must pay their own way, says Trump

In a post on Truth Social, Trump said data centres are important for the fast-growing artificial intelligence industry. But he made it clear that the companies building them should handle the cost themselves. “The big Technology Companies who build them must ‘pay their own way,’” Trump wrote. He added that Microsoft would be making “major changes,” though he did not explain what those changes would be.

“Under Sleepy Joe Biden and the Radical Left Democrats, the average American household’s monthly utility bills went up MASSIVELY — over 30%! I never want Americans to pay higher electricity bills because of Data Centres,” Trump wrote on X.  “That’s why my Administration is working with major American Technology Companies to secure their commitment to the American People. We will have much to announce in the coming weeks,” he added.

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Power prices in the US have gone up faster than overall inflation. This has led to growing frustration among voters, especially since electricity is a basic need. These higher bills are now adding to increasing complaints about the cost of living, including food, fuel, and housing. 

Trump says Microsoft will act to keep power bills down

Trump singled out Microsoft as the first company to make adjustments. “First up is Microsoft, who my team has been working with, and which will make major changes beginning this week,” Trump wrote. Trump also congratulated Microsoft for its efforts and suggested that other tech companies would soon make similar commitments.

Microsoft has not issued any official statement to Trump’s comment, however, the company’s Vice Chair and President, Brad Smith, is expected to make an announcement at an event in Washington on Tuesday, which may address the issue.

Before Trump’s post, Microsoft released a statement saying it has worked with local communities to use technology to build a better future. He told the audience that Microsoft was doing everything it could to manage the situation so that local residents would not have to pay more for electricity because of the company’s presence.

“As America approaches its 250th anniversary, the country is entering a new era of opportunity shaped by the power of AI. This moment raises fundamental questions about the future we build together – who benefits from AI, its potential impacts, and who should bear the cost of critical AI infrastructure?” The company earlier said in a statement, according to Bloomberg.

Last week, Meta announced agreements with three nuclear power companies to support a data center project in Ohio. While Microsoft is moving ahead with some projects, it has also faced pushback. The company recently dropped plans for a data center in Caledonia, Wisconsin, after strong local opposition.

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AI boom increases pressure on power grids

The Trump administration has strongly supported building more data centres as part of the US push to stay ahead of China in artificial intelligence. Companies like Google, Microsoft, Meta and others are investing heavily in these massive facilities, which need enormous amounts of electricity to run around the clock. But the rapid expansion of these facilities is putting pressure on the country’s power grids. Utility companies and regulators are struggling to figure out how to share the cost while still making sure there is enough reliable electricity for everyone.

According to a CNBC report from November, U.S. consumers were charged about 6% more for electricity in August compared with a year earlier. States with a large number of data centers were among those seeing higher costs.

This issue is also becoming a political problem for Republicans, especially with elections approaching. Polls, cited by Bloomberg, show many Americans are unhappy with how Trump has handled the economy during his second term. In November’s elections, Democrats focused heavily on promises to lower utility bills. That message helped them win key races in states like New Jersey, Virginia, and Georgia. With midterm elections coming up this November, high electricity costs are expected to remain a major issue for both parties.