economy
March 15, 2026
Powering AI data centers with free market reforms
President Donald Trump wants technology companies to “build, bring, or buy all of the energy needed for building and operating data centers, paying the full cost of their energy and infrastructure” to protect Americans from higher electricity prices.
TL;DR
- Technology companies should bear the full cost of energy for their data centers to protect consumers from price hikes.
- Electricity demand from data centers is projected to double or triple, straining the grid.
- New utilities should be allowed to generate and sell electricity directly to data centers under voluntary contracts, bypassing the regulated grid.
- Renewable portfolio standards (RPS) in 29 states and D.C. are outdated, force intermittent renewables, and increase electricity costs.
- Permitting reform is needed to accelerate energy projects, making the environmental review process faster and more effective.
- All energy subsidies at every government level should be repealed, as they incentivize intermittent power over reliable, around-the-clock energy.
- A federal moratorium on data center construction is a misguided proposal that would harm the U.S. in the AI race.
- The government should not single out industries for special restrictions or dictate how they obtain electricity.
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