// TOM'S HARDWARE US — HARDWARE & GADGET
Trump announces mandate forcing AI data centers to pay energy dividends to the local community
Excess electricity generated could also make its way to the local community.
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
President Donald Trump has issued a call for data center builders and AI hyperscalers to pay communities a dividend in order to overcome energy-related price hikes, or even to reduce prices, in order to make data centers more palatable to local communities. In a post on Truth Social post, he warned that data centers would be mandated not only to make their own electricity, as he has previously stated, but also to give or sell excess energy back to the local community.
Local communities all over the United States have protested against AI data centers, often owing to their outsized impact on local communities. Rising electricity costs, noise pollution, water shortages, air pollution, deforestation, and more are the things that small communities have to deal with because of these companies.
To ease the pain of local communities, Trump is demanding that these large companies provide the communities they affect with something that will hopefully make their presence more acceptable. The Trump Administration is keen to stay ahead of China in the AI arms race and is looking for solutions to win back some favor by making the data centers pay something back to the affected communities; how that will practically transpire is yet to be seen. Considering the electricity-focused post, the dividend might be in the form of partially paying rising electricity costs to alleviate a pain point that directly affects many homes within the vicinity of data centers. The Trump Administration had ordered these companies to make their own electricity, as we’ve covered previously. Excess electricity from their generation could be used to further lower the electricity cost for the locals, including a recently passed act that orders data centers to shoulder the cost for grid upgrades to avoid taking it from the taxes of local communities.
“Data Centers that were highly unpopular in a certain area have become extremely popular when a financial deal is struck.” Trump further says in his post, aiming to have more data centers built, “MAKE DEALS, and get them built!!!," the President said in closing.
Whether the dividends will be enough to win over communities is yet to be known, as the economic aspect is only one facet of the problem. There are still plenty of problems to face; enormous water consumption, ecological damage, and pollution are still major challenges that make AI data centers a hard sell anywhere they’re located.
Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
Jhet Borja is a serial hobbyist who was taking apart toys from childhood and sketching inventions. He now loves doing DIY projects ranging from designing custom 3D-printed parts, building PCs and keyboards, all the way to woodworking. If he's not getting his hands dirty, he's probably brainstorming his next project.