Trump says AI firms must fund power infrastructure, vows US will stay ahead of China in AI race

US President Donald Trump said technology companies developing artificial intelligence (AI) must pay for the massive energy infrastructure needed to power the industry's rapid expansion, arguing that the policy would protect American consumers from higher electricity bills while helping the United States maintain its lead over China in the global AI race.

Speaking at an event highlighting his administration's Ratepayer Protection Pledge, Trump said the explosive growth of AI data centres would require an unprecedented increase in electricity generation, but stressed that households should not bear the financial burden.

"We're insisting that AI data centres and big tech companies pay their own way," Trump said. "And they're happy to do it, because this way, they're going to be able to function and function brilliantly."

According to Trump, his administration is allowing technology companies to build dedicated power plants alongside new AI facilities, reducing pressure on the existing electricity grid while enabling surplus electricity to be fed back into the system.

"They're going to have a lot of electricity left over and they'll put that into the grid, so we'll actually end up with more electricity, the rates are going to go down," he said.

Trump said AI would require more than double the country's current electricity generation capacity.

"You need double the electricity that we have right now, maybe even more than that, to really fulfil what you want to do," he said.

He described the initiative as part of a broader Ratepayer Protection Plan under which major technology companies have committed to finance or build the energy infrastructure needed to meet their own growing electricity demand.

"Under this groundbreaking plan, America's largest tech companies have formally committed to fund or build all energy infrastructure required to meet the demand they are placing on the grid," Trump said.

According to the President, more than 220 utilities, technology companies, state governments and other partners have signed the pledge.

"Electricity rates for 80 per cent of the power distributed in America are now being kept in check by the plan," he added.

Trump also argued that AI investments would generate significant economic benefits for communities hosting data centres through new jobs, higher tax revenues and lower electricity costs.

Citing examples, he said SouthernCompany's Georgia Powerhad frozen base electricity rates for households until 2029. He also claimed Google's investment in Georgia would help eliminate property taxes, while data-centre agreements in Iowa had enabled utilities to freeze consumer electricity rates for at least five years.

In Louisiana, Trump said a Meta-backed $27 billion project would save residents an estimated $2.6 billion on electricity bills while providing bonuses of up to $50,000 for public school teachers in Richland Parish.

The President repeatedly framed the initiative as part of the United States' strategic competition with China, asserting that America currently enjoys a significant lead in AI.

"We're leading China by a lot," Trump said. "And using our old grid would not have worked."

Calling AI "probably the biggest thing anybody's ever seen," Trump said the technology would reshape the global balance of power.

"I think it's bigger than the internet. It's bigger than anything anyone's seen thus far. Whoever wins that race is probably going to win, period," he said.

Trump said expanding domestic energy generation was essential to preserving America's technological leadership.

"We want to lead the world. And it is said, if you come in second, you're going to be second overall because there's never been anything big like this," he said.

He also warned that communities rejecting AI infrastructure projects risked losing investment to competing regions and countries.

"If you don't take all that money, somebody else is going to take it," he said, adding that some nations were trying to persuade communities to oppose large AI data-centre projects.

Trump further disclosed that ChinesePresident Xi Jinpingis expected to visit Washington later this year.

"President Xi is coming over on September 24th, and we talked about it when I was over in Beijing, and we'll be talking about it again," he said.

Comparing the two countries' approaches to infrastructure development, Trump said China could move faster because it faced fewer regulatory hurdles.

"They don't do environmental impact statements. They just say you want electric? We'll build it," he said.

The rapid expansion of AI has intensified concerns over electricity demand worldwide, with technology companies investing billions of dollars in new data centres as governments and utilities seek to expand power generation while balancing energy security, affordability and climate goals.