Peter Navarro, former trade advisor to President Donald Trump, has called on AI companies to fully absorb the costs associated with building and operating data centers, warning that taxpayers should not be left to cover the rising expenses tied to the AI boom. Speaking on Fox News’ “Sunday Morning Futures,” Navarro emphasized that tech firms must “internalize” the full financial impact of their infrastructure projects, including electricity, water usage, and strain on the power grid. “We need to make sure the American people are not hurt,” Navarro said, highlighting growing concerns about the economic and infrastructural toll of AI expansion. His comments come amid increasing scrutiny of the massive investments being made by Big Tech to power artificial intelligence, which are driving up utility costs nationwide. Tech giants are investing hundreds of billions into data center infrastructure. In November, Meta announced a $600 billion commitment to expand its AI technology, infrastructure, and workforce. Apple followed by pledging an additional $100 billion to its U.S. infrastructure plans, bringing its total investment to $600 billion. At the same time, energy providers are facing rising demands. A recent study by PowerLines, a nonprofit advocating for utility customers, found that electric and gas utilities requested $31 billion in rate hikes from regulators last year—more than double the $15 billion requested the previous year. Many utilities cited the surge in electricity consumption from large-scale data centers as a primary driver. President Trump has echoed Navarro’s concerns, stating on Truth Social last month: “I never want Americans to pay higher Electricity bills because of Data Centers.” He insisted that “the big technology companies who build them” must “pay their own way.” Navarro also stressed the importance of maintaining U.S. leadership in AI, arguing that the nation must outpace China and other global competitors. “We have to lead China and others on this,” he said, adding that AI is not only an economic imperative but a national security priority. “AI will be one of the most dangerous weapons of war,” he warned. In response, some AI companies have pledged to shield consumers from the financial burden. Anthropic announced it will cover 100% of the grid upgrade costs tied to its data centers, stating that while rapid infrastructure development is essential for U.S. competitiveness and national security, the costs should not fall on American ratepayers. The company’s $50 billion AI infrastructure plan includes facilities in Texas and New York. Microsoft has taken a similar stance, recently announcing it will pay utility rates high enough to fully cover the electricity costs of its data centers, aiming to reduce the impact of expansion on local communities and avoid passing costs to consumers.