The US government is reportedly seeking a legal commitment from major technology companies on the electricity consumption of data centres that power artificial intelligence (AI) services. According to a recent report citing two Trump administration officials who spoke on condition of anonymity due to the private nature of the discussions, the government wants companies such as OpenAI, Google, Amazon and Facebook-parent Meta to publicly commit to a new compact that would govern the rapid expansion of AI data centresThe compact comes just weeks after Microsoft made a similar set of commitments, saying it would pay more for the electricity that serves its data centres, cover any additional infrastructure and reduce water consumption. Microsoft also said it would no longer accept any local tax breaks, a measure which is not included in the White House draft compact. Last month, US President Donald Trump shared a Truth Social post confirming that Microsoft had announced he was working with other tech companies to “ensure that Americans don’t ‘pick up the tab’ for their POWER consumption.”
US government’s electricity usage pact for Google, Amazon, Meta and others: What we know so far
A draft of the compact obtained by Politico lays out commitments to ensure that energy-hungry data centres do not raise household electricity prices, strain water supplies, or undermine grid reliability, and that the companies driving demand also bear the cost of building new infrastructure.The proposed pact, which is not final and could change, is framed as a voluntary agreement between US President Donald Trump and major US tech companies and data centre developers. It could bind OpenAI, Microsoft, Google, Amazon, Meta and other AI majors to a broad set of energy, water and community principles. The initiative, which the administration plans to roll out at a White House event, has yet to be formally announced, and it remains unclear which companies have agreed to the compact or have been invited to participate.The compact would mark an ambitious effort to shape the footprint of AI infrastructure without imposing direct regulation. It comes a month after the White House appealed to the Mid-Atlantic Energy Grid Operator to lower electricity prices. Concerns have risen that data centres’ enormous energy demand could drive up prices, creating a political liability for an administration that has supported their rapid development.In a statement to Politico, White House spokesperson Taylor Rogers said, “As President Trump announced weeks ago, top tech companies are working with the President to ‘pick up the tab’ for their power consumption as they build data centres. More to come soon!” However, A White House official said the draft “is outdated and no longer accurate” without specifying which parts have changed.The decentralised nature of the nation’s electricity grid means that grid operators, state regulators, and utilities would have to agree on rules or craft contracts to make aspects of the proposed compact actionable. In a recent interview with the POLITICO Energy podcast, Energy Secretary Chris Wright said, “People are sceptical. ‘Oh my gosh, this is going to further add insult to injury and drive up my energy prices.’ I understand their concerns. We are in dialogue with all the hyperscale developers about not only being a long-term force to drive down electricity prices on the grid, but to also be a short-term force to stop the existing price rises.”At the core of the compact is a requirement that AI data centre developers pay 100% of the cost of new power generation needed to serve their facilities. The compact also calls on companies to sign long-term electricity contracts to ensure other customers don’t end up footing the bill if the data centre fails. Companies would commit to paying the full cost of any current or future transmission upgrades required to interconnect new data centres to the grid.In parallel, the tech companies would agree to work with federal, state and local regulators to establish power and transmission rates that, “in every manner possible,” hold harmless and ideally reduce residential electricity prices in the jurisdictions where data centres operate. The principles would apply not only to data centres they own but also to the capacity they lease or operate that is owned by others. Electricity costs are already rising, even outpacing inflation over the past year.Some companies have said that they already pay their own costs. For example, Meta has said it covers all of its energy costs and commissioned a study last year that found the clean energy projects it has supported add generation and do not raise costs for ratepayers.The draft also pulls data centres into grid reliability planning. Signatories would commit to using noncritical backup generation at new and existing facilities, in coordination with grid operators, to support stability and reliability during emergencies. Companies would voluntarily agree to curtail new data centre load when necessary to ensure reliable power for American households.Beyond energy, the compact aims to address local opposition in growing data centre regions. Hyperscalers would commit to being “water positive”, developing or procuring sufficient water supplies to support new facilities and ensuring no negative impact on local water availability or quality. The agreement also calls on companies to establish AI awareness programmes in surrounding communities and public schools and to adopt practices to mitigate noise, traffic, and other disruptions affecting nearby residential neighbourhoods.The pact could be meaningful for companies seeking federal help to accelerate grid interconnections, however, it can be a bottleneck for AI infrastructure projects. Under the draft, the US government would commit to supporting the accelerated inter-connection of new data centres to the bulk power system, which delivers high-voltage power across regions.
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