President Donald Trump said large technology companies must pay for the electricity used by their data centers, warning that AI data center electricity costs should not drive higher household power bills as artificial intelligence growth accelerates.

Electricity prices have become a political issue in several U.S. states, especially in the Mid-Atlantic region served by the PJM grid. That network supplies power to states including New Jersey and Virginia, where rising costs featured in recent elections and are expected to matter again in 2026.

Data centers are a major factor behind the pressure on power systems. Industry estimates show U.S. data center capacity stood near 25 gigawatts in 2024. Demand could rise to more than 100 gigawatts by 2035. That would sharply increase strain on grids unless new power supply is built alongside the facilities.

A July report from the Department of Energy estimated the country will need about 100 gigawatts of new peak power capacity by 2030. Roughly half of that increase would be driven by data centers. Researchers also estimate such facilities could make up about 12% of peak electricity demand by 2028.

In a late-night post on Truth Social, Trump said his administration had discussed the issue with Microsoft. He said data centers are central to the AI boom but added that large technology companies must “pay their own way” so consumers do not face higher bills. He said Microsoft would make changes but gave no details.

Hours later, Microsoft announced steps aimed at limiting the impact of its data centers on utilities and communities. The company said it will pay electricity rates that fully cover its power use and work with utilities to expand supply when needed. It also pledged to replenish more water than its data centers consume and to publish regional water-use data.

Microsoft said it is backing a new rate structure in Wisconsin designed to prevent costs from being passed on to consumers. It also plans job training and AI education programs tied to its projects, saying the approach is meant to address growing concerns around AI data center electricity costs.

At the same time, Microsoft warned that U.S. AI companies face growing competition from China. Company president Brad Smith said Chinese firms benefit from government subsidies that allow them to offer lower prices abroad.