23 governors sign Trump's cost pledge for data centers, backbone of AI

WASHINGTON — President Donald Trump announced that 23 governors have signed his pledge that seeks to protect households from absorbing utility costs tied to data centers, the sprawling facilities powering artificial intelligence that are expanding rapidly across the country.

The governors, all Republicans, are among nearly 200 stakeholders ‒ major utility companies, data center developers, public power and co-ops ‒ who have signed Trump's Ratepayer Protection Pledge. The pledge was first put forward by the White House in March.

Trump, who has defended data centers as they face resistance in many communities, touted the growing coalition at a July 23 event at the Environmental Protection Agency headquarters, where he was joined by four of the governors.

Companies that sign the pledge agree to "protect American consumers from price hikes due to data center energy and infrastructure requirements, and lower electricity costs for consumers in the long term."

Although non-binding, the pledge includes an addendum for the governors committing to it to "implement the principles established in the Ratepayer Protection Pledge, to the greatest extent possible in our respective positions."

"You have to convince your community how great these things..." Trump said of data centers. "You can't fight it, you have to go with it, and you're going to have all this protection. You're going to make a tremendous amount of money, you're going to reduce taxes, and you're going to have something where, if you don't have it, everybody else wants it."

Who has and hasn't signed the pledge?

Trump campaigned in the 2024 election on bringing down prices, but electricity costs are up by about 4% from last year and energy costs have increased by 16%. The nation's affordability crunch poses a significant hurdle for Trump and Republicans in the November midterm election.

Governors who signed the pledge include Republicans Kay Ivey of Alabama, Brian Kemp of Georgia, Kim Reynolds of Iowa, Mike DeWine of Ohio, Greg Abbott of Texas, Bill Lee of Tennessee and Spencer Cox of Utah. Kemp, as well as Louisiana Gov. Jeff Landry, Nebraska Gov. Jim Pillen and Idaho Gov. Brad Little, are set to attend the event.

No Democrats signed the document, and three of the nation's 26 Republican governors have not either: Vermont Gov. Phil Scott, New Hampshire Gov. Kelly Ayotte and Florida Gov. Ron DeSantis, who signed a new state law this year that implemented strict regulations for data centers.

Data centers, which house computer networks and servers that enable digital information and services, are becoming increasingly vital for tech companies as technology expands, particularly in artificial intelligence.

But residents in many communities have protested construction of the centers, which take up enormous space, produce noise and bring few direct benefits to their neighborhoods. The facilities require considerable electricity, water, and other utilities that critics say spike costs for people who live near them.

The support of the 23 governors builds on an effort that began with seven of the world's largest tech companies ‒ Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon ‒ signing the pledge in March.

“President Trump is expanding the Ratepayer Protection Pledge to governors, legislators, developers, and power providers to ensure everyone involved in building and powering data centers covers their own costs instead of passing them on to American families," White House spokeswoman Taylor Rogers said in a statement. "The President’s bold action is turning data centers into engines of growth for local communities, while cementing America’s dominance in the global AI race.”

Trump hailed data centers as "big, strong, bold, and Money Machines" in a social media post last week, while calling it a "terrible decision" for New York Gov. Kathy Hochul, a Democrat, to sign an executive order issuing a one-year pause on the construction of data centers in her state. Trump said companies that operate data centers are sought by "red states" such as Alabama, Florida and Texas.

Yet recent fights over data centers have popped up in both Democratic- and Republican-leaning states, from Nashville to the Virginia suburbs outside Washington, D.C., to rural Utah and small towns in New Jersey. Even Palm Beach, Florida, home of Trump's Mar-a-Lago resort, has fiercely debated a new artificial intelligence data center planned there.

Trump has expressed concerns about states creating barriers slowing the advancement of AI technology as the United States competes with China for the lead globally in AI innovation.

Reach Joey Garrison on X @joeygarrison.