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Trump pushes big tech to build private power plants to run data centres

FP Tech Desk February 25, 2026, 11:24:59 IST

US President Donald Trump on Tuesday said major tech firms must build their own power plants to run data centres, citing grid strain and rising costs during his State of the Union (SOTU) address to a joint Congress session at the Capitol. The measure was meant to protect the consumers from raising bills.

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Donald Trump said major tech companies should have the obligation to provide for their own power needs. AP
Donald Trump said major tech companies should have the obligation to provide for their own power needs. AP

US President Donald Trump on Tuesday during his State of the Union (SOTU) address to a joint Congress session at the Capitol said that his administration has told major technology companies they must build their own power plants for their data centres.  

The measure was meant to protect the consumers from raising bills.  

“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.

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“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 added

The announcement came amid growing local opposition to energy-hungry data center projects around the country blamed for a jump in electricity costs.

Trump did not list out the companies involved and on how the plan would be executed or enforced. According to news agency Reuters, the White House is expected to host companies in early March to formalise the event.  

Amid the export of Nvidia H200 chips to China, the Trump administration has been supporting efforts to advance artificial intelligence in the country amid tech rivalry with China.  

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.

Recently, the US Defence Department has given AI company Anthropic until Friday to agree to unrestricted military use of its technology or face being forced to comply under emergency federal powers, a senior official said Tuesday.

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