Donald Trump ‘guarantees’ Americans about to save big on bills, but his genius plan has giant holes and they’ve been exposed

President Donald Trump just attempted to guarantee that artificial intelligence will actually lower your energy bills, but energy experts are already pointing out everything that’s wrong with his plan.

Per Politico, he was pretty enthusiastic about the commitments in the “ratepayer protection pledge”, saying they’ll help bring down electricity bills “very, very substantially” for millions of Americans. 

Trump told everyone at the White House event, where he was joined by tech leaders and GOP lawmakers, that prices “are not going to be going up. They’re going to be actually going down,” but “it will take a little time to get there.” Energy Secretary Chris Wright emphasized that the tech companies were fully on board to lower energy costs for consumers: “These companies are smart, they’re powerful, they’re strong. All of them have spent money to these noble causes.”

Companies like Amazon, Google, OpenAI, Meta, Microsoft, Oracle, and Elon Musk’s xAI have committed to the pledge, promising to build or provide their own electricity supplies. It is an important consideration, considering how much energy AI consumes. Google stated, “To protect American rate payers, we’re committed not only to pay for 100 percent of the energy we use, but very importantly, the infrastructure to support that growth, whether or not we end up using that energy.” 

It seems like a great idea at first glance

Energy market experts are cautioning that this pledge doesn’t actually address some key ways that the rapid construction of data centers could still raise people’s power bills. We’re talking about things like increased competition for power plant fuels, such as natural gas, and even components like gas turbines. Plus, Trump’s tariffs on commodities could also play a role in driving up costs. 

The pledge also leaves it up to tech companies, utilities, and state officials to figure out how to assign a range of costs to the broader power grid, which ultimately show up in our electricity bills, all outside federal control. Additionally, while Trump told reporters last week that he “made it mandatory where they have to build their own electric power plant, “administration officials acknowledged that the companies’ pledge is actually voluntary. 

This whole effort comes as residential electricity rates have been climbing, with a six percent nationwide average increase in December compared to the previous year, partly due to surging AI-driven power demand, which has resulted in growing consumer backlash against data centers. amping down electricity prices is a major motivator for Trump, especially with cost-of-living concerns potentially impacting the upcoming November elections.

It is particularly important as Trump is facing down the threat of rising gas prices as a result of the conflict with Iran. To fix this, he has also issued demands to Venezuela for barrels of oil.

The Tech companies have also agreed to negotiate with power companies and grid regulators for different rates than residential and industrial customers, pay for power even if they don’t use it, hire and train local workers, and invest in a more durable grid by contributing resources for backup power.