The White House is urging major AI companies to absorb the rising costs of electricity driven by the rapid expansion of data centers, with most tech giants already publicly committing to cover their share of energy expenses. The surge in demand from AI infrastructure has contributed to a more than 6% increase in the average national electricity price over the past year—a development that could prove politically sensitive ahead of the fall elections. President Donald Trump addressed the issue in his State of the Union speech, stating, “We’re telling the major tech companies that they have the obligation to provide for their own power needs.” He added that companies could build their own power plants on-site, ensuring that residential electricity prices remain stable. The tech industry has responded swiftly. On January 11, Microsoft announced it would ensure that the electricity costs associated with its data centers are not passed on to residential consumers. Just days later, on January 26, OpenAI pledged to “pay its own way on energy, so that our operations don’t increase your energy prices.” On February 11, Anthropic followed suit, promising to cover any electricity price increases linked to its data center operations. Most recently, Google announced the launch of what it claims is the world’s largest battery storage project, designed to support a new data center in Minnesota. These moves reflect a broader strategy by hyperscalers to mitigate public backlash over data center expansions and to build trust with local communities. Still, key questions remain about how these commitments will be enforced. It is unclear which data centers will be held accountable for specific price increases, or how responsibility will be measured and verified. The White House has not provided details on the policy’s implementation and did not respond to requests for comment from TechCrunch. Arizona Democratic Senator Mark Kelly criticized the approach, saying, “A handshake agreement with Big Tech over data center costs isn’t good enough. Americans need a guarantee that energy prices won’t soar and communities have a say.” Next week, White House officials plan to host a formal signing event where executives from major AI companies are expected to commit to the pledge. Attendees reportedly include representatives from Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI—though none have officially confirmed their participation. Even if companies agree to cover energy costs, on-site power solutions may not fully resolve the issue. Building dedicated power plants—whether fueled by natural gas, solar, or batteries—can still strain local resources, disrupt ecosystems, and place added pressure on supply chains for critical components. The long-term environmental and economic impacts of these solutions remain uncertain.