WASHINGTON (dpa-AFX) - American tech giants Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI have signed the Ratepayer Protection Pledge with the U.S. Government, agreeing to build, bring, or buy new generation resources and cover the cost of all power delivery infrastructure upgrades required for their data centers, ensuring such expenses are not passed to American households.
Under the Ratepayer Protection Pledge, these companies will negotiate separate rate structures with utilities and State governments, and commit to pay these rates for the power and related infrastructure brought online to service their data centers, whether they use the electricity or not, the White House said.
Companies signing the Ratepayer Protection Pledge will also coordinate with grid operators to make backup generation resources available, contributing to a more reliable grid and preventing blackouts and power shortages in times of emergency.
The Ratepayer Protection Pledge commits AI companies and hyperscalers to hiring and training talent from within the communities where they build and operate data centers, creating thousands of jobs and enhancing workforce skills.
As the large-scale data center infrastructure being built in the U.S., the related electricity demand increases, raising the electricity bill of the public.
Data center infrastructure is the foundation of the internet, cloud computing, and AI. The United States is experiencing an unprecedented surge in electricity demand driven by rapid technological advancements and an increase in domestic manufacturing. This increase in demand, coupled with existing capacity challenges, places a significant strain on the Nation's electric grid.
The Ratepayer Protection Pledge contributes to lower electricity costs, stronger grid infrastructure, and enhanced grid resilience during emergencies.
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