Key facts
- President Donald Trump will announce an expanded Ratepayer Protection Pledge.
- The pledge aims to prevent data center electricity costs from being passed to households.
- It ensures companies building and using data centers pay above normal rates.
- The initiative will now cover 80% of U.S. power delivered to homes and businesses.
- Regional electric grids are under strain, with transmission congestion in PJM up 81%.
President Donald Trump is scheduled to announce an expanded pledge aimed at protecting households from rising electricity costs associated with the growth of data centers and artificial intelligence. The initiative, set to be unveiled on Thursday, builds upon his original Ratepayer Protection Pledge and seeks to ensure that companies building and utilizing data centers contribute more than standard rates, thereby preventing these costs from burdening average consumers.
Trump will be joined by Energy Secretary Chris Wright, EPA Administrator Lee Zeldin, and several governors who supported the initial pledge. However, the effort faces significant challenges due to the existing strain on the nation's fragmented system of regional electric grids. Transmission congestion in the PJM Interconnection, the largest grid serving 67 million people, has surged by 81% to $3.2 billion in 2025, with recent power auctions reaching record prices.
Energy regulator FERC is set to convene to address the precarious state of PJM, highlighting the ongoing imbalance between supply and demand. Experts note that the current electricity system forces all users, from homeowners to large data centers, to rely on the same network, a model that is increasingly inadequate. Large customers face long waits for service, while ordinary ratepayers fear that grid expansion for industrial loads will increase their bills. Data center proponents argue that their industry's growth is spurring essential investments in the U.S. electric grid, citing factors like power plant retirements and transmission limitations as other cost drivers.
The White House stated that the nonbinding pledge will now extend its coverage to 80% of all power delivered to U.S. homes and businesses.