WASHINGTON, D.C. – On Thursday, the President met with Republican governors, developers and power providers who are signing onto his so-called “Ratepayer Protection Pledge.” It’s his plan to help grow data centers across the country while trying to keep the extra energy costs from becoming a burden on local communities.
The President announced this pledge during his State of the Union address months ago. The White House has announced since then, nearly two hundred entities including unities, data center developers, electricity co-ops and public power sources and Republican state governors have signed on. However, there’s been pushback on bringing these centers to local communities.
These data centers are a physical facility that houses and runs large computer systems. According to an article by McKinsey and Company, they expect the global demand for data center capacity can more than triple by 2030. According to a congressional report, these centers require a lot of power and water, which is a huge concern for communities. They are worried these centers will strain regional energy grids and hike up rates for locals.
Large tech companies like Meta, Google, Microsoft, Amazon, Oracle and OpenAI, just to name a few, signed onto the pledge to ensure that they are building and using data centers pay their fair share of energy and water use, along with electric grid improvements and maintenance.
“With the ratepayer protection pledge we’re creating a fair deal for everybody,” said President Trump. “This is how we’ll grow our economy, lower the cost of living, protect American consumers and lead the world in AI and high tech.”
Some Democratic-led states told us their Governor’s office were not contacted by the Administration to take part in their pledge.
Michigan Governor Gretchen Whitmer’s office announced that six artificial intelligence and data center companies have signed the Michigan Affordability and Responsible Growth Pledge, in which companies agree to invest in the electric grid, use clean energy, hire Michiganders, safeguard natural resources and pay the full cost of data center construction and operation so residents do not pay for it.
Pennsylvania Governor Josh Shapiro’s spokesperson Will Simons sent us this statement: “Governor Shapiro has been leading the fight to protect Pennsylvania ratepayers for years—pushing for concrete, enforceable policies that lower costs for consumers. Governor Shapiro has secured more than $45 billion in energy savings as a result of his legal action, worked with all 13 PJM governors alongside federal energy leaders to advance reforms that give states a stronger voice and protect consumers, and established his GRID Standards, which require large data center projects to mitigate their impacts and ensure they’re paying their fair share instead of shifting costs onto Pennsylvania families and businesses.”
New York Governor Kathy Hochul recently signed a one-year moratorium on building large data centers in the state. During this pause, the Governor said they will establish a regulatory framework that protects ratepayers, the environment and New Yorkers. On CBS News, the Governor was asked about the White House’s pledge and if it’s sufficient enough: “My view is if you’re going to succeed in New York because of our talent and our resources and our people, I want to make sure that New Yorkers succeed as well,” the Governor said on CBS News. “So, it’s not a one-way street. I don’t want the companies coming in and telling us how to do things in our state. But they can be welcome when I lay out the rules of the road, which they will embrace. Once they know how to play the game, how to do things in New York, they’ll want to come.”
Congressman Nick Langworthy (R- NY) said he understands the concern from locals surrounding data centers but he said they could provide economic opportunity. He is frustrated with the Governor’s moratorium and said communities should not be a decision made by the governor.
“I want there to be local decision making on this side,” said Rep. Langworthy. “They should not follow the Governor and what the state legislature have done with all the green energy projects which have eviscerated local zoning control. Local zoning control should always prevail in these circumstances. They should be the ones to determine if the projects fits the character of the community and serves the needs of the people there.”
