Here's a question nobody was asking a decade ago: What happens when artificial intelligence gets so hungry for electricity that it threatens to spike everyone's power bill? Well, the Trump administration has an answer, and it involves getting tech companies to put their money where their data centers are.

According to a report from POLITICO on Tuesday, the White House is pushing major tech firms to publicly commit to a draft compact that would ensure the explosive growth of energy-intensive data centers doesn't burden households with higher electricity costs, strain water supplies, or destabilize grid reliability. The companies potentially involved include OpenAI, Microsoft (MSFT), Google (GOOGL) (GOOG), Amazon (AMZN), and Meta Platforms (META).

Who Pays for All That Power?

The heart of the proposed compact is pretty straightforward: if you're building AI data centers that need massive amounts of electricity, you're paying for it. All of it.

Under the agreement, AI data center developers would bear 100% of the cost for any new power generation their facilities require. They'd also need to sign long-term electricity contracts to prevent costs from getting dumped on other customers if projects collapse. And it doesn't stop there. Companies would cover the full expense of any current or future transmission upgrades needed to hook new data centers into the grid.

Tech firms would also commit to working with regulators to establish power and transmission rates that protect, and ideally reduce, residential electricity prices in regions where their data centers operate. The idea is simple: your AI dreams shouldn't make someone else's electric bill a nightmare.

No Loopholes Allowed

The principles wouldn't just apply to company-owned data centers. The compact would cover leased facilities and third-party-operated centers too, closing any potential loophole that might let firms shift their impact elsewhere while technically complying with the rules.

Community Benefits and Federal Incentives

It's not all about footing bills. The agreement would require companies to launch AI education programs in local communities and schools, plus adopt measures to minimize noise, traffic, and other disruptions that come with having a massive data center in your neighborhood.

What do companies get in return? The federal government would support faster grid interconnections for new data centers to the bulk power system, potentially cutting through red tape that can delay projects.

The proposed agreement is still under review and subject to changes. It's envisioned as a voluntary pact between President Donald Trump and major U.S. tech companies. The administration plans to announce the initiative at a White House event, though it remains unclear which companies will actually participate or have already signed on.

The White House did not immediately respond to MarketDash's request for comment.

The Bigger Picture on Data Center Costs

This White House push follows a proposal from PJM Interconnection, the largest power grid operator in the United States, to hold an emergency auction that would let tech giants bid on 15-year contracts for building new power plants.

Microsoft (MSFT) previously pledged to adopt a "community-first" approach to its AI infrastructure expansion, promising that local electricity bills wouldn't surge because of its operations. That commitment came after Trump made clear he doesn't want Americans to "pick up the tab" for Big Tech's energy appetite.

U.S. Energy Secretary Chris Wright has pushed back against claims that massive data centers are driving up American electricity bills. Wright argues that tech giants are actually eager to fund the necessary grid upgrades for the AI boom, rather than being the culprit behind rising rates. He previously told POLITICO that his department is in discussions with hyperscale developers to help lower electricity prices over the long term while curbing current increases.

The voluntary compact represents an attempt to formalize these commitments before the AI infrastructure buildout creates real problems for everyday ratepayers. Whether tech companies will actually sign on, and whether a voluntary agreement will have teeth, remains to be seen.