Trump Asks Big Tech to not Pass AI Data Center Costs on to Consumers

Trump Asks Big Tech to not Pass AI Data Center Costs on to Consumers


Trump Asks Big Tech to not Pass AI Data Center Costs on to Consumers

­President Trump is urging Big Tech to not pass increased AI data center costs on to consumers, as electricity demand hit all-time highs in 2025, with estimates placing it at 4,187 to 4,199 billion kilowatt-hours (kWh).

The culprits for this outsized demand include the usual suspects – countrywide electrification (including and especially electric and hybrid vehicles) and a rejuvenated manufacturing sector. But one of the fastest-growing energy hogs is the explosion in AI and its accompanying data centers.

In turn, tech companies often pass these costs on to consumers in the form of higher utility costs, with residential retail electricity prices going up anywhere from 5-7.5% year-over-year in 2025.

John Quigley, senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, pointed to the “data center frenzy” as primary culprit for these price hikes.

“They’re pretty much the whole boat when it comes to increases in electricity demand,” Quigley said. Quigley added that it’ll only get worse.

For his part, Trump claimed to be working with Microsoft.

"First up is Microsoft, who my team has been working with, and which will make major changes beginning this week to ensure that Americans don’t “pick up the tab” for their POWER consumption," said the Chief Executive.

And for their part, Microsoft has said they won’t pass rising costs on to consumers, though it’s unclear if that’s existing policy or as a result of their dealings with the Trump administration.

And of course, as should be obvious by now, such unofficial promises are subject to change.