WASHINGTON – The White House is considering a move that would compel data center operators, including major players like Meta, to shoulder the costs associated with their substantial energy and water consumption, according to comments made Sunday by President Trump’s trade and manufacturing advisor, Peter Navarro. The potential shift comes as rising utility bills and concerns about economic affordability become central issues in the upcoming 2026 midterm elections.
Navarro, speaking on Fox News’ “Sunday Morning Futures,” argued that data centers powering the surge in artificial intelligence are straining the U.S. Electricity grid and driving up costs for consumers. “All of these data center builders, Meta on down, need to pay for all, all of the costs,” Navarro said. “They need to pay, not only pay for the electricity that they’re using on the grid, but they have to pay for the resiliency that they’re affecting as well. They need to pay for the water. So there’s activity, action here going forward, where we force them to internalize the cost.”
The administration’s focus on data center costs reflects a broader attempt to address voter anxieties about the economy. Electricity prices increased 6.9% year over year in 2025, and the trend shows few signs of abating. However, the move also comes as President Trump faces criticism for his handling of the economy, with polls consistently showing him underwater on economic issues.
A Shifting Landscape for Data Centers
The potential policy shift comes after the White House and several states signed a pact in January, urging PJM Interconnection – the grid operator for much of the Mid-Atlantic – to require large technology companies to finance new power plant construction. PJM operates in areas with a high concentration of data centers, including northern Virginia and New Jersey. This agreement called for $15 billion in new generation capacity, financed by the tech sector, and an emergency auction to procure the power.
The move is part of a larger effort to address the growing strain on the power grid caused by the increasing demand from data centers, particularly those supporting artificial intelligence applications. The administration argues that these companies should bear the costs associated with their energy and water usage, rather than passing them on to consumers.
Political Motivations and Democratic Gains
Navarro attempted to attribute rising costs to the economic policies of former President Joe Biden, stating, “We understand the ravages that inflation took on you because of Joe Biden’s irresponsibility.” However, polling data suggests that voters are increasingly holding the Trump administration accountable for economic challenges. Democrats have seized on the issue of affordability, arguing that everyday goods and services have become too expensive under the current administration. According to polling averages from RealClearPolitics, Democrats currently hold a 5.2-point lead in the generic ballot ahead of the November midterm elections.
The political pressure is evident in recent state-level elections. Democratic Governors Abigail Spanberger of Virginia and Mikie Sherrill of New Jersey both won their races in 2025, campaigning heavily on promises to lower electricity costs.
Industry Response and Ongoing Negotiations
Meta, a major data center operator, responded to Navarro’s comments by stating that the company already covers its energy costs. A Meta spokesperson said, “Meta pays the full costs for energy used by our data centers so they aren’t passed onto consumers — and we go beyond that by paying for new and upgraded local infrastructure as well as adding new power to the grid.”
President Trump himself has publicly claimed pride in the state of the economy, stating in an interview with NBC News, “I’d say we’re there now,” when asked about the “Trump economy.” However, the administration is actively pursuing agreements with tech companies to ensure they contribute to the costs of maintaining a reliable power supply. Last month, Trump announced on Truth Social that he had reached a deal with Microsoft to prevent the company from passing on its power consumption costs to consumers. He added that negotiations with other tech giants were underway.
Microsoft pledged last month to not raise utility costs near its data centers and to replenish water used by the facilities.
Balancing Energy Needs and Renewable Energy Goals
The administration’s focus on bolstering traditional power generation appears to conflict with its simultaneous efforts to curtail offshore wind projects in the Northeast. Several fully permitted or under-construction wind farms are facing opposition from the administration. Energy Secretary Chris Wright stated that “Perhaps no region in America is more at risk than in PJM,” and emphasized the need to “allow America to build big reliable power plants again.”
The White House is reportedly considering a draft compact with tech companies, as reported by POLITICO, aimed at preventing data centers from impacting consumer utility bills.
The administration’s approach to data center energy costs is still evolving. The next key development will likely be the release of details regarding the proposed compact with tech companies and the implementation of the PJM Interconnection agreement. The outcome of these negotiations will have significant implications for the future of data center operations and the affordability of electricity for consumers.
This is a developing story. Check back for updates.
