Tech Giants to Build Own Power Plants for AI Data Centers Under White House Initiative

Tech giants including Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI are set to sign a White House initiative to build their own electricity supply infrastructure for AI data centers, according to sources familiar with the matter.

The agreement, which is expected to be formalized in March, represents a significant shift in how major technology companies plan to power their rapidly expanding artificial intelligence operations. The initiative comes as AI data centers face unprecedented power demands, with some facilities requiring electricity equivalent to small cities.

According to Fox News, the companies will commit to developing independent power generation capabilities to support their AI infrastructure. This move addresses growing concerns about grid capacity and reliability as AI workloads continue to scale exponentially.

President Donald Trump previously indicated his support for tech companies building their own power plants, telling industry leaders to develop independent energy solutions for their data centers. The White House initiative appears to formalize this directive into a coordinated industry effort.

Sources tell Reuters that the administration expects to finalize the agreement in March, though specific details about the scope and timeline remain unclear. The initiative could potentially involve a mix of traditional power generation, renewable energy, and emerging technologies like small modular nuclear reactors.

The power demands of AI computing have become a critical bottleneck for the industry. Training large language models and running inference at scale requires massive computational resources, which in turn demand substantial electricity. Companies have been exploring various solutions, from locating data centers near renewable energy sources to developing more efficient cooling systems.

This initiative represents a significant departure from traditional approaches to data center power, where companies typically rely on local utilities and grid infrastructure. By building their own power generation capabilities, these tech giants aim to ensure reliable, scalable energy supplies for their AI operations while potentially reducing their exposure to grid constraints and energy price volatility.

The participating companies have not yet commented publicly on the initiative, and the White House has not released official details about the agreement's terms or implementation timeline.