WASHINGTON — President Donald Trump expanded a national data center cost pledge on July 23, 2026, asking utilities and technology companies to fund new power supplies and grid upgrades without increasing household bills. The White House said more than 200 utilities, developers, cooperatives and states joined the effort.
Federal pledge remains voluntary.
The Ratepayer Protection Pledge asks large data center operators to build, buy or finance the electricity their projects require. Companies also agree to cover delivery upgrades and pay contracted charges even when they use less power than expected. The program now covers 80% of electricity delivered to U.S. homes and businesses. The White House estimates that participating systems serve 263 million people.
Trump said technology companies would also receive permission to develop their own power plants. The administration has tied the policy to expanding domestic AI infrastructure and competing with China. The pledge remains a voluntary and nonbinding agreement. State regulators still control utility rates, approve major investments, and decide which customers pay for new infrastructure.
North Carolina seeks enforceable protections.
North Carolina Gov. Josh Stein and Attorney General Jeff Jackson said Duke Energy should follow the federal pledge through binding state rules. Duke was among the utilities that joined the expanded national initiative. The officials want data centers and other large users to pay for new generation, transmission and related equipment. Their proposal would prevent those expenses from being distributed across residential and small-business bills.
Jackson is also challenging a proposed Duke Energy Carolinas settlement. The agreement would leave residential customers facing an average increase near 9.5%, his office said. Duke calculates the increase differently. The company says the settlement produces an average annual increase of 3.7% over two years across all customer classes, or about 7.4% overall.
Power demand is rising quickly.
Data centers used about 176 terawatt-hours of electricity in 2023, equal to 4.4% of total U.S. consumption. Their share could reach 6.7% to 12% by 2028 under federal electricity demand projections. The highest estimate would place annual data center consumption near 580 terawatt-hours. That growth could require new generation, expanded transmission and faster grid connections.
Pressure is already visible in PJM Interconnection, which manages power across 13 states and the District of Columbia. Data centers represented nearly 40% of charges in its latest capacity auction, increasing concerns about costs passed to customers. Residential electricity prices are rising during 2026 and are expected to increase again in 2027. Data centers are not the sole cause, but concentrated demand can accelerate infrastructure spending where power supplies are already tight.
Job gains vary by project.
Developers say data centers create construction work, expand tax bases and attract related technology investment. Critics note that permanent staffing inside individual facilities can remain modest after construction ends. Counties receiving their first large data center experienced employment growth of 4% to 5% over five or six years. Construction employment rose 11%, while information-sector employment increased 22%.
A typical county could gain 2,000 to 4,000 jobs after six years. Those totals included indirect employment and wider business activity, not only positions inside the facility. Benefits also varied by project type. Counties with several hyperscale facilities recorded stronger technology-sector growth than places hosting one colocation center.
Utility hearings will set rules.
The North Carolina Utilities Commission will decide whether to approve, change or reject Duke’s proposed settlement. If approved as filed, the new rates would begin January 1, 2027. An expert witness hearing begins July 28 in Raleigh for the Duke Energy Carolinas rate case. A separate Duke Energy Progress hearing is scheduled for August 4, keeping data center costs and residential rates before regulators into the fall.
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