Speaking for an hour and 48 minutes on Tuesday, February 24, US President, Donald Trump, delivered a full-throated defence of his first year back in office in his 2026 State of the Union address, touting his record on immigration, the economy, tariffs and more.
The president claimed responsibility for a “turnaround for the ages” while calling on Congress to enact several of his administration’s initiatives.
Among several submissions, he announced his administration has made agreements with major tech companies that will allow them to construct power plants for data centres that power artificial intelligence, with the goal of avoiding price spikes for electricity in surrounding communities.
“Many Americans are also concerned that energy demand from AI data centres could unfairly drive up their electric utility bills,” Mr. Trump said. “Tonight, I’m pleased to announce that I have negotiated the new ‘rate payer protection pledge.'”
The president said “we’re telling the major tech companies that they have the obligation to provide for their own power needs” so that “no one’s prices will go up.”
“This is a unique strategy never used in this country before,” Mr. Trump said. “We have an old grid – it could never handle the kind of numbers, the amount of electricity that’s needed. So, I’m telling them they can build their own plant, they’ve got to produce their own electricity.”
Responding, observers say that Trump’s “Golden Age” rhetoric masks a hard truth: his administration’s defence of fossil fuels is costing everyday people, who face soaring energy bills and ever-higher utility debt.
Environment campaign group, 350.org, pointed out that while President Trump boasted of record-high oil and gas production during his first year, he has failed to fulfill his campaign promise to cut energy prices by half.
On the contrary, added the group, average electricity prices over the past year in the US have risen by 6.7%, according to an analysis of data by the Energy Information Administration. Meanwhile, around 21 million American families were in arrears on their utility bills, with the average overdue amount climbing by nearly a third since 2023, according to the National Energy Assistance Directors Association.
Experts say that the increase in electricity prices is driven by rising LNG exports, delayed closure of costly coal plants, AI-driven energy demands, blocking of solar and wind projects, and elimination of energy-efficiency tax credits.
350.org called President Trump’s so-called “ratepayer protection pledges” asking AI data centres to provide their own power as a “theatrical stunt” with no enforceable mechanism, and which risks ramping up costly fossil fuel production to meet unchecked energy demand.
“It is a Golden Age – but only for fossil fuel companies that poured $96 million into the Trump administration. For the millions of Americans who cannot afford to pay their energy bills, it is like heading back to the dark ages. The Trump administration cannot claim to stand for American consumers while blocking progress in renewables, the cheapest form of energy available today. It cannot champion affordability while doubling down on a highly volatile gas market and driving conflicts that inevitably increase energy prices everywhere,” Anne Jellema, 350.org executive director, said.
350.org also cites a recent poll that shows 97% of nearly 1,500 business executives across 15 major global economies support the transition away from fossil fuels to renewable energy, citing competitive edge and long-term energy security.
“Trump’s bravado cannot disguise the fundamental insecurity at the heart of his administration: fossil fuels are increasingly unviable, and even businesses want to move on. Around the world, people are demanding and building a clean, affordable energy future, with or without the US government,” Jellema added.