The Trump administration is urging major tech companies to sign onto a voluntary compact governing the explosive growth of AI data centers, aiming to prevent skyrocketing electricity prices, water strain, and grid instability as power-hungry facilities proliferate across the U.S.
A draft of the agreement, obtained by POLITICO and dated February 9, 2026, outlines commitments designed to ensure that data centers, fueled by the AI boom, do not raise household electricity bills, overburden water resources, or compromise grid reliability, while shifting the financial burden of new infrastructure onto the companies driving the demand. At its core, the pact requires AI data center developers to cover 100% of the costs for new power generation needed to support their facilities, addressing concerns that unchecked expansion could exacerbate recent energy price spikes in regions with heavy data center concentrations.
The push comes amid mounting political pressure, as areas with dense data center activity have seen monthly electricity prices surge by as much as 267% compared to five years ago, according to a Bloomberg News analysis cited in related reports. Energy Secretary Chris Wright acknowledged public skepticism in a POLITICO Energy podcast interview, stating, “People are skeptical. ‘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.”
Also Read: New York Lawmakers Float Three-Year Moratorium on New Data Centers Amid Energy and Climate Concerns
This voluntary framework signals the administration’s effort to balance rapid AI infrastructure growth with consumer protections, without imposing new regulations, following similar commitments from companies like Microsoft, which in January 2026 vowed to “pay our way to ensure our data centers don’t increase your electricity prices” by covering grid improvements and higher rates. The compact’s development reflects broader worries that data centers’ enormous energy appetite, projected to consume up to 8% of global electricity by 2030, could become a political liability, especially as the administration champions unbridled AI development.
Similar pacts or moratoriums have emerged globally: The UK’s grid operator has warned about improper data center placement raising costs, while Singapore and Ireland have imposed pauses or constraints due to grid strains. As U.S. data center power use escalates, potentially adding 5 gigawatts by 2030, the White House’s initiative could set a precedent for sustainable tech expansion, but its voluntary nature raises questions about enforcement amid competing state incentives in places like Virginia and Texas.
