President Donald Trump will be announcing during his State of the Union on Tuesday that his administration has made a deal with major tech companies that requires them to take on a greater share of the energy costs associated with data centers, Politico reported.
Trump will reveal that top tech companies have agreed to pay more for electricity in areas where new data centers are built, which often consume large amounts of energy and water, a White House official told Politico.
Trump administration officials have been talking with Microsoft Corp., Alphabet Inc., and other companies about signing the pledges, a White House official told Bloomberg.
"The President will proudly tout his Administration's many record-breaking accomplishments, and also [lay out] an ambitious agenda to continue bringing the American Dream back for working people," White House press secretary Karoline Leavitt said in a statement.
The agreements would be nonbinding.
Trump is also set to address his efforts to boost American "energy dominance," including plans to expand domestic mining and oil and gas drilling, rolling back climate regulations, and extracting and selling Venezuelan oil, Politico reported.
Democrats have begun campaigning on rising energy costs, with Climate Power, a Democrat-aligned environmental group, announcing a large ad buy blasting Trump on utility bills increasing, Politico reported.
"Just like his pledge to cut utility bills in half before they spiked 13% on his watch, Trump's data center announcement is a toothless, empty promise based on backroom deals with his own billionaire donors," Jesse Lee, a senior adviser for Climate Power, said in a statement.
"Trump is obsessively taking massive amounts of clean energy off the grid, Americans are paying the price, and nothing Trump is saying tonight will stop it from getting worse," Lee added.
Electricity prices increased in January by 6.3% year over year, according to the Bureau of Labor Statistics.
Cities like Atlanta and New Orleans have placed restrictions on constructing new data centers.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
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