Trump's plan for rising energy costs: Pump oil, make data centers pay - Los Angeles Times

Los Angeles Times

by Hayley Smith

February 25, 2026

AI-Generated Deep Dive Summary

President Trump’s State of the Union address included a controversial plan to address rising energy costs by targeting AI data centers and doubling down on fossil fuels. The president introduced a vague “ratepayer protection pledge” that would require major tech companies to build their own power plants, claiming this would lower electricity prices for residents. While details remain unclear, Trump emphasized that the outdated grid cannot handle the growing demand from energy-intensive data centers, suggesting these companies should produce their own electricity. The proposal comes amid rising concerns about living costs and economic dissatisfaction among voters, which could impact midterm election outcomes. Despite Trump’s focus on increasing oil, gas, and coal production, residential electric bills have soared, jumping from 15.9 cents per kilowatt-hour in January 2023 to 17.2 cents by December. This contradicts his claims of reducing energy costs, raising questions about the effectiveness of his policies. Trump’s administration has also rolled back renewable energy initiatives, slashing funding for solar programs, ending federal tax credits for electric vehicles, and canceling offshore wind projects. These actions have further strained efforts to combat climate change, particularly in California, where Trump has blocked stricter tailpipe emission standards and cut funding for clean hydrogen energy. The state plans to fight new oil drilling along the Pacific Coast, but Trump’s broader policies continue to prioritize fossil fuels over renewable energy sources. Critics argue that Trump’s focus on fossil fuels is short-sighted, as it exacerbates rising utility bills and harms the environment. Jesse Lee of Climate Power describes Trump’s data center announcement as an empty promise that benefits billionaire donors while neglecting clean-energy production, which could actually address demand and stabilize prices. As energy affordability becomes a key issue in American households, Trump’s policies are likely to spark ongoing debates about the future of energy and its impact on both the economy and the environment.

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Originally published on Los Angeles Times on 2/25/2026