Trump to hyperscalers: your datacenters, your power bill
(2026/02/10)
- Reference: 1770736725
- News link: https://www.theregister.co.uk/2026/02/10/trump_wants_no_ai_friction/
- Source link:
The Trump administration continues its AI push, working to defuse public opposition to datacenter energy and water consumption - while dangling a promise to exempt hyperscalers from chip tariffs to help them stock their facilities with GPUs and accelerators.
To address public concerns, Washington wants tech giants to commit that their expanding datacenter estates across the US won't spike energy bills or drain local water supplies.
How datacenters use water – and why kicking the habit is nearly impossible [1]READ MORE
According to [2]Politico , a proposed voluntary pact between President Trump, the datacenter industry and megacorps like Microsoft, Google, Amazon, Meta and OpenAI, would establish principles around energy, water use and local community relations.
The move aligns with recent developments: last month, Trump declared tech companies must fund datacenter power increases rather than passing costs to consumers, [3]securing Microsoft's compliance . The US Energy Secretary also pressured grid operator PJM Interconnection to hold an [4]emergency auction addressing surging AI datacenter demand.
This appears aimed at containing [5]growing public opposition to server farms popping up all over the US. Research org [6]Data Center Watch found 20 projects were blocked or delayed by local opposition during Q2 2025 alone.
[7]
Other reports indicate hyperscalers may be spared from President Trump's [8]chip import tariffs to avoid impeding their buildouts. In January, the [9]White House said it was imposing 25 percent tariffs on "certain advanced computing chips," including Nvidia's H200 and AMD's MI325X.
[10]
[11]
According to the [12]Financial Times , these tariff carve-outs may be contingent on chip companies - especially TSMC - committing to relocating more production stateside.
[13]Datacenters that don't have their own power supplies will fail
[14]AI is rewriting how power flows through the datacenter
[15]All aglow about DCs, investors launch $300M at microreactor startup
[16]Why do bit barns keep bumping up our bills, Senators ask DC operators
This furthers Washington's effort to relocate 40-50 percent of TSMC's manufacturing to US soil, a "massive reshoring" that Taiwan's vice-premier this week called " [17]impossible ."
TSMC has committed $165 billion to Arizona fabs that will produce some of its 2nm chips, though whether this satisfies Trump remains unclear.
If TSMC meets conditions for hyperscalers tariff exemptions, the US would exempt the largest buyers of products it just tariffed. Reg readers can no doubt spot the irony.
[18]
Last month TSMC [19]posted Q4 2025 revenue of $33.7 billion, up more than 25 percent year-on-year. Full-year revenue for the world's largest chip contract manufacturer came in at $122.5 billion, up 36 percent compared to 2024. ®
Get our [20]Tech Resources
[1] https://www.theregister.com/2025/01/04/how_datacenters_use_water/
[2] https://www.politico.com/news/2026/02/09/trump-administration-eyes-data-center-agreements-amid-energy-price-spikes-00772024
[3] https://www.theregister.com/2026/01/13/trump_datacenter_power_costs/
[4] https://www.theregister.com/2026/01/17/trump_wants_big_tech_pay_power_plants/
[5] https://www.theregister.com/2026/01/21/stargate_openai_community_plans/
[6] https://www.datacenterwatch.org/q22025
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[8] https://www.theregister.com/2025/08/07/us_semiconductor_tariffs_100_percent/
[9] https://www.whitehouse.gov/fact-sheets/2026/01/fact-sheet-president-donald-j-trump-takes-action-on-certain-advanced-computing-chips-to-protect-americas-economic-and-national-security/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.ft.com/content/e6f7f69a-2552-45f5-ae4c-6f1135e5cde1
[13] https://www.theregister.com/2025/12/04/gartner_datacenter_power_emerging_technologies/
[14] https://www.theregister.com/2025/12/22/ai_power_datacenter/
[15] https://www.theregister.com/2025/12/17/smr_investment/
[16] https://www.theregister.com/2025/12/16/datacenters_energy_bills_dc/
[17] https://www.theregister.com/2026/02/09/taiwan_us_chip_production/
[18] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[19] https://www.theregister.com/2026/01/16/tsmc_q4_2025/
[20] https://whitepapers.theregister.com/
To address public concerns, Washington wants tech giants to commit that their expanding datacenter estates across the US won't spike energy bills or drain local water supplies.
How datacenters use water – and why kicking the habit is nearly impossible [1]READ MORE
According to [2]Politico , a proposed voluntary pact between President Trump, the datacenter industry and megacorps like Microsoft, Google, Amazon, Meta and OpenAI, would establish principles around energy, water use and local community relations.
The move aligns with recent developments: last month, Trump declared tech companies must fund datacenter power increases rather than passing costs to consumers, [3]securing Microsoft's compliance . The US Energy Secretary also pressured grid operator PJM Interconnection to hold an [4]emergency auction addressing surging AI datacenter demand.
This appears aimed at containing [5]growing public opposition to server farms popping up all over the US. Research org [6]Data Center Watch found 20 projects were blocked or delayed by local opposition during Q2 2025 alone.
[7]
Other reports indicate hyperscalers may be spared from President Trump's [8]chip import tariffs to avoid impeding their buildouts. In January, the [9]White House said it was imposing 25 percent tariffs on "certain advanced computing chips," including Nvidia's H200 and AMD's MI325X.
[10]
[11]
According to the [12]Financial Times , these tariff carve-outs may be contingent on chip companies - especially TSMC - committing to relocating more production stateside.
[13]Datacenters that don't have their own power supplies will fail
[14]AI is rewriting how power flows through the datacenter
[15]All aglow about DCs, investors launch $300M at microreactor startup
[16]Why do bit barns keep bumping up our bills, Senators ask DC operators
This furthers Washington's effort to relocate 40-50 percent of TSMC's manufacturing to US soil, a "massive reshoring" that Taiwan's vice-premier this week called " [17]impossible ."
TSMC has committed $165 billion to Arizona fabs that will produce some of its 2nm chips, though whether this satisfies Trump remains unclear.
If TSMC meets conditions for hyperscalers tariff exemptions, the US would exempt the largest buyers of products it just tariffed. Reg readers can no doubt spot the irony.
[18]
Last month TSMC [19]posted Q4 2025 revenue of $33.7 billion, up more than 25 percent year-on-year. Full-year revenue for the world's largest chip contract manufacturer came in at $122.5 billion, up 36 percent compared to 2024. ®
Get our [20]Tech Resources
[1] https://www.theregister.com/2025/01/04/how_datacenters_use_water/
[2] https://www.politico.com/news/2026/02/09/trump-administration-eyes-data-center-agreements-amid-energy-price-spikes-00772024
[3] https://www.theregister.com/2026/01/13/trump_datacenter_power_costs/
[4] https://www.theregister.com/2026/01/17/trump_wants_big_tech_pay_power_plants/
[5] https://www.theregister.com/2026/01/21/stargate_openai_community_plans/
[6] https://www.datacenterwatch.org/q22025
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[8] https://www.theregister.com/2025/08/07/us_semiconductor_tariffs_100_percent/
[9] https://www.whitehouse.gov/fact-sheets/2026/01/fact-sheet-president-donald-j-trump-takes-action-on-certain-advanced-computing-chips-to-protect-americas-economic-and-national-security/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.ft.com/content/e6f7f69a-2552-45f5-ae4c-6f1135e5cde1
[13] https://www.theregister.com/2025/12/04/gartner_datacenter_power_emerging_technologies/
[14] https://www.theregister.com/2025/12/22/ai_power_datacenter/
[15] https://www.theregister.com/2025/12/17/smr_investment/
[16] https://www.theregister.com/2025/12/16/datacenters_energy_bills_dc/
[17] https://www.theregister.com/2026/02/09/taiwan_us_chip_production/
[18] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aYtkNTTVGpasd3I8Rgg2bQAAAsM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[19] https://www.theregister.com/2026/01/16/tsmc_q4_2025/
[20] https://whitepapers.theregister.com/
JohnSheeran
Typical BS. This is why the US is so upside down with the rich getting richer and the poor getting poorer. Sure, their power bill is theirs. However, all power companies operate just like any other business and give bulk discounts to high consumers rather than the other way around. This basically means that everyone else sees an increase because there isn't enough infrastructure to support the increased consumption. (I worked at one of the power companies and this is exactly how it works) The only potential safety valve for all of this is each state's public utility controls. Unfortunately, each state operates differently and some are more friendly to the power companies than others. Guess where all the new datacenters will get built?
The whole effing world is corrupt.
elsergiovolador
all power companies operate just like any other business
Not exactly. You can't just set up a power company. It's an oligopoly for the rich and there is no real competition.
genmayhem
Thought it was interesting with one coming in about 100 miles from me, they are using Cat natural gas generators G3520K for power. Says 12GW planned/permitted/purchased.
https://joulepower.ai/infrastructure/
Oh dear
Supporting the average Joe over the needs of the Tech Bros is not what they paid him to be elected for.
Maybe time for Trump to have an accident ....