ICYMI: Blumenthal & Democratic Colleagues Demand Answers from Trump Administration as Data Centers Drive Up Utility Prices

[WASHINGTON, DC] – In case you missed it, U.S. Senator Richard Blumenthal (D-CT) wrote to White House Office of Science and Technology Policy Director Michael Kratsios and U.S. Department of Commerce Secretary Howard Lutnick about rising utility costs facing American consumers due to the buildout of power-hungry data centers. In a letter sent yesterday to Kratsios and Lutnick, Blumenthal and U.S. Senators Edward J. Markey (D-MA), Chris Van Hollen (D-MD), Ron Wyden (D-WA), and Bernie Sanders (I-VT) demanded answers about the steps the Trump Administration is taking to protect consumers from the burden of new data centers that have driven up electricity demand and threatened water supplies in communities across the country.

“As American families face soaring electricity bills caused by the Trump Administration’s sweetheart deals with Big Tech companies, we write to demand information about the failure of the Administration to prevent consumers from being forced to subsidize the cost of data centers — costs compounded by the Administration’s reckless abandonment and assault on new, clean energy sources,” the Senators wrote.

The Senators continued, “Since his second inauguration, President Trump has cozied up to Meta, Google, Oracle, OpenAI, and other Big Tech companies, fast-tracking and pushing for the buildout of power-hungry data centers across the country. The power demands of these new data centers are staggering and unprecedented: for example, Meta’s new data centers, promoted during the President’s dinner with tech executives, will consume up to 5 gigawatts each: the equivalent to nearly four million homes. National power consumption from data centers is projected to rise from around 5% to 12% within three years and adding to fears of more blackouts on burdened grids.”

The Senators pointed to the Trump Administration’s attacks on clean energy, which have made it more difficult to increase and diversify sources of household electricity sources, as contributing to rising utility rates, “President Trump has hiked tariffs on critical energy infrastructure, expanded liquified natural gas exports that could push natural gas prices up by 30% by 20504 and undermined energy assistance programs that millions of families rely on. In addition, President Trump’s attacks on wind and solar — the cheapest and fastest-to-deploy energy sources — through imposing burdensome regulatory requirements and revoking tax credits are driving up costs and prolonging timelines for deployment.”

The Senators raised concern about how the buildout of new data centers have threatened water supplies for rural communities, “Similarly, data centers have become increasing burdens on water supplies, especially in rural locations, as they use water to cool servers and facilities. These sharp increases can have a devastating impact on consumers who must make significant sacrifices just to keep the lights on. As one Ohio retiree put it, ‘I can adjust the thermostat to save money — I freeze in the winter and roast in the summer.’”

The Senators are also seeking information from the Trump Administration about any legal arrangements made with Big Tech companies to ensure that new data centers do not increase electricity rates or risks of blackouts. The full text of the Senators’ letter is available here and below.

Dear Mr. Kratsios and Mr. Lutnick,

As American families face soaring electricity bills caused by the Trump Administration’s sweetheart deals with Big Tech companies, we write to demand information about the failure of the Administration to prevent consumers from being forced to subsidize the cost of data centers — costs compounded by the Administration’s reckless abandonment and assault on new, clean energy sources.

Since his second inauguration, President Trump has cozied up to Meta, Google, Oracle, OpenAI, and other Big Tech companies, fast-tracking and pushing for the buildout of power-hungry data centers across the country. The power demands of these new data centers are staggering and unprecedented: for example, Meta’s new data centers, promoted during the President’s dinner with tech executives, will consume up to 5 gigawatts each: the equivalent to nearly four million homes. National power consumption from data centers is projected to rise from around 5% to 12% within three years and adding to fears of more blackouts on burdened grids. The Office of Science and Technology Policy itself has conceded that “technological advancements of AI are increasing pressures on the grid.” While the Administration has gestured at eventually adding some more power sources and improving grid infrastructure, it has failed to keep up with increasing demand. As a result, everyday Americans are already being forced into bidding wars with trillion-dollar companies to keep the lights on at home.

As electricity demand has increased, the Trump Administration has supercharged this cost-of-living crisis by making it harder to increase and diversify sources of household electricity sources. President Trump has hiked tariffs on critical energy infrastructure, expanded liquified natural gas exports that could push natural gas prices up by 30% by 20504 and undermined energy assistance programs that millions of families rely on. In addition, President Trump’s attacks on wind and solar — the cheapest and fastest-to-deploy energy sources — through imposing burdensome regulatory requirements and revoking tax credits are driving up costs and prolonging timelines for deployment.

During repeated, lofty announcements alongside Mark Zuckerberg, Sam Altman, Larry Ellison, and other executives, the Trump Administration has already failed to prevent those new data centers from driving up electricity prices from a surge of new commercial demand. Despite President Trump’s promises to lower Americans’ bills, since January, families have seen the average price of household energy climb by ten percent. In the Mid-Atlantic region, which hosts the highest concentration of data centers in the country, residential retail rates are projected to further increase between 30% and 60% in the next five years. Similarly, data centers have become increasing burdens on water supplies, especially in rural locations, as they use water to cool servers and facilities. These sharp increases can have a devastating impact on consumers who must make significant sacrifices just to keep the lights on. As one Ohio retiree put it, “I can adjust the thermostat to save money — I freeze in the winter and roast in the summer.”

Americans should not be expected to bankroll Big Tech’s infrastructure through excessive electricity bills and threats to their water supplies. Given the significant and rising utility bills facing American households, we request answers to the following questions by November 21,

2025:

1. What steps has the Office of Science and Technology Policy and the Department of Commerce taken to measure the cost and burden to American households from increasing electricity rates and water supply use due to the buildout of new data centers promoted by the Trump Administration?
2. What legal arrangements has the Trump Administration made with Big Tech companies to ensure that new data centers are not increasing electricity rates right now or increasing risks of blackouts, instead of waiting for future increases in electricity supply and upgrades to grid infrastructure?
3. What legal arrangements has the Trump Administration made with Big Tech companies to ensure that new data centers are not imposing burdens or creating environment or health risks to water supplies?
4. Please provide a list of all companies that the Trump Administration has coordinated with on the buildout of new data centers, the locations of those data centers, and the estimated power and water usage of each data center.
5. What national coordination has the Trump Administration taken to ensure that states and municipalities are aware of, and able to respond to, local regional increases in demand for electricity and water supplies due to data center build outs.
6. What steps is the Trump Administration and its partners in the artificial intelligence and cryptocurrency industries taking to compensate American households for drastic increases in their utility bills?

Thank you for your attention to this important matter.

Sincerely,

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