Trump’s Shocking Move: Will Data Centers Be Forced to Bear the Burden of Rising Costs?
White House trade advisor Peter Navarro stated on Sunday that the administration may require data center builders, including major companies like Meta, to bear the costs associated with their operations, especially as utility prices continue to climb and public discontent with the economy grows. Speaking on Fox News’ “Sunday Morning Futures,” Navarro emphasized that these companies must not only cover their electricity usage but also the impact they have on grid resilience and water usage. “All of these data center builders need to pay for all the costs,” he asserted, suggesting that upcoming actions would compel them to “internalize the cost.”
Navarro did not provide specific details regarding the proposed plan to enforce this cost absorption, prompting CNBC to reach out to the White House for further clarification on the strategy. In response to Navarro’s remarks, a Meta spokesperson emphasized that the company already covers all its energy expenses, stating, “Meta pays the full costs for energy used by our data centers so they aren’t passed onto consumers,” and additionally supports local infrastructure improvements to bolster the power grid.
The issue of data center utility costs is gaining prominence, particularly as electricity prices surged by 6.9% in 2025, with little indication of relief in sight. Navarro attributed these rising costs to the policies of former President Joe Biden, who left office over a year ago. “We understand the ravages that inflation took on you because of Joe Biden’s irresponsibility,” Navarro asserted, promising economic policies aimed at increasing wages faster than inflation to combat affordability woes.
As the November 2026 midterm elections approach, polls indicate that voters increasingly blame the Trump administration for economic struggles. Democrats are leveraging this sentiment, pointing to rising costs as a critical issue. Recent polling averages from RealClearPolitics reveal that Democrats hold a 5.2-point lead in the generic ballot, suggesting potential difficulties for Trump and the Republicans in the upcoming elections.
While Navarro pointed a finger at Biden’s administration, Trump himself expressed pride in the current economic conditions during an interview on “NBC Nightly News.” When asked if the nation is in the “Trump economy,” he confidently responded, “I’d say we’re there now.”
In a bid to alleviate the burden on data center electricity and rising utility costs, the Trump administration recently took action. In January, several states and the White House agreed to a pact urging PJM Interconnection, the nation’s largest grid operator, to make tech companies financially responsible for new power plants needed in data center-heavy areas like northern Virginia and New Jersey. This pact advocates for $15 billion in new generation capacity financed by technology firms and calls for emergency measures to secure the power necessary.
Democratic governors in Virginia and New Jersey, both of whom won their elections by campaigning on affordable electricity, were part of this initiative. Energy Secretary Chris Wright emphasized the urgency of this issue, stating, “Perhaps no region in America is more at risk than in PJM,” following the announcement.
Additionally, Politico recently uncovered a draft agreement the White House aims to have tech companies sign to ensure data centers do not negatively impact consumer utility bills. Trump announced on Truth Social last month that a deal with Microsoft has been struck to prevent American consumers from shouldering increased utility costs due to data centers, hinting that further negotiations with other tech firms are underway.
This evolving discussion on utility costs and the responsibilities of data center builders underscores the intersection of technology, economics, and regulatory policy, as the administration grapples with mounting pressure from voters ahead of the midterms.
Original Source: https://www.cnbc.com/2026/02/15/navarro-trump-data-centers-affordability.html
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Publish Date: 2026-02-16 02:01:00