A key trade advisor to former President Donald Trump indicated on Sunday that the White House is considering measures to require data center builders to bear their full utility costs. The surge in data centers, essential for powering artificial intelligence, is placing significant strain on the U.S. electrical grid and contributing to higher electricity and water bills for consumers. This potential policy shift emerges as Trump's economic management faces declining poll numbers, with voter anxiety over affordability intensifying.
Peter Navarro, Trump's advisor on trade and manufacturing, stated that given rising voter dissatisfaction with the economy and soaring utility prices, the administration may compel data center operators to internalize their associated expenses. "From Meta on down, all these data center builders need to bear the full, total cost," Navarro said during an appearance on Fox News. "They must pay not only for the electricity they draw from the grid but also for the resilience of the grid they impact, as well as for water usage. Therefore, government action will be taken to mandate that these costs are internalized."
Navarro did not elaborate on the specific mechanisms the White House might use to enforce this cost internalization. When questioned about Navarro's comments, a Meta spokesperson asserted that the company already pays in full for all its energy consumption. "Meta pays the complete cost for the energy used by our data centers, ensuring these expenses are not passed on to consumers—additionally, we fund new local infrastructure and upgrades, as well as contribute new power supplies to the grid," the spokesperson added.
The strain data centers place on utilities is part of a broader "affordability crisis." U.S. electricity prices surged 6.9% year-over-year in 2025, with no signs of abating. Navarro attempted to attribute the blame for these soaring costs to former President Joe Biden, who left office over a year ago. "I want to assure the public that we are addressing this issue; we understand the struggle," Navarro stated. "We recognize the inflationary pain caused by Joe Biden's irresponsibility, but we are countering it through economic policies aimed ultimately at achieving wage growth that outpaces inflation, which is key to solving the affordability problem."
However, a growing number of Americans are holding the Trump administration responsible for rising costs. With the November 2026 midterm elections approaching, polls consistently show weak approval ratings for Trump on economic matters. Democrats are aggressively criticizing Trump and Republicans on affordability, arguing that prices for everyday goods and services have become unacceptably high. According to the Real Clear Politics polling average, Democrats lead by 5.2 percentage points in generic ballot polls ahead of the midterms, an election that could weaken Trump's influence in Washington.
While Navarro blamed the previous administration for Americans' affordability struggles, Trump himself has expressed pride in the state of the economy. In an interview aired during Sunday's Super Bowl broadcast, when asked about the onset of "the Trump economy," the former president responded, "I believe we are already in it."
The Trump administration has recently taken steps to address the pressure data centers place on the power grid and rising utility costs. In January, several states signed an agreement with the White House urging PJM Interconnection, the nation's largest grid operator, to have major technology companies fund new power generation within its system. The PJM grid covers areas with high concentrations of data centers, including Northern Virginia and New Jersey. Governors Abigail Spanberger of Virginia and Mickey Sherrill of New Jersey, both Democrats who campaigned on lowering electricity prices in 2025 and won by significant margins, were involved.
The agreement calls for adding $15 billion in new generation capacity within the PJM grid, financed by tech firms, and urges the operator to hold emergency auctions to procure power. Concurrently, the administration is halting offshore wind projects in the Northeast, some of which were fully permitted or under construction. "No region of the country faces greater risk than the PJM territory," Energy Secretary Chris Wright said following the agreement's announcement. "That is why President Trump called on Mid-Atlantic governors to act collectively, demanding PJM permit the rebuilding of large, reliable power plants in America."
Last week, POLITICO reported that the White House is preparing a draft agreement for tech companies to sign, ensuring data centers do not impact consumer utility bills. Last month, Trump claimed on Truth Social that he had reached a deal with Microsoft to "ensure Americans do not 'pay' for Microsoft's electricity consumption in the form of higher utility bills." The former president also stated that his administration is negotiating with other tech giants, adding, "more announcements are coming soon!" Microsoft committed last month to not increasing utility costs in areas near its data centers and to replenishing water consumed by its facilities.