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Trump advisor warns taxpayers shouldn’t fund AI data centres
Peter Navarro stresses that expanding US data centre capacity is crucial to maintaining America’s global leadership in AI
The White House is signaling that major technology companies may be required to cover the full costs of building and operating AI data centres, according to White House trade advisor Peter Navarro.
Speaking on Fox News’ Sunday Morning Futures, Navarro said that companies must “internalize” the expenses of electricity, water, and grid impacts caused by AI infrastructure.
He emphasised that taxpayers should not bear the burden of the AI boom.
Navarro stressed that expanding US data centre capacity is crucial to maintaining America’s global leadership in AI, both economically and for national security, warning that AI “will be one of the most dangerous weapons of war.”
The comments come amid rising utility costs, with electric and gas providers requesting $31 billion in rate hikes last year—more than double the previous year—citing demand from large-scale data centers as a key factor.
Tech companies are taking steps to ease concerns. Anthropic pledged to cover all grid upgrade costs tied to its AI facilities, and Microsoft committed to paying utility rates sufficient to prevent local communities from absorbing the expenses.
Meta and Apple have also announced multibillion-dollar investments in US AI infrastructure.
Navarro’s remarks highlight the balance the US government seeks between fostering AI growth and protecting American households from rising utility bills.