Trump Urges Data Centers to Fund Communities and Generate Power
US President Donald Trump is pressing artificial intelligence infrastructure companies to finance their own electricity supplies and share economic benefits with nearby residents, seeking greater local support for large data center projects ahead of the November 3 midterm elections. In a Truth Social post on Wednesday, October 21, 2026, Trump proposed requiring new, large facilities to generate power and encouraging operators to provide direct financial benefits to communities where they build.
Trump said operators should return or sell surplus electricity to local communities or the power grid, potentially reducing electricity costs. He also argued that payments to residents could improve public acceptance of facilities facing opposition over energy consumption, water use and land requirements.
Trump outlined his proposed electricity policy in his social media statement.
"New and large, in some cases gigantic, Data Centers are mandated by me to make their own electricity," Trump wrote on Truth Social.
The president said companies could make projects more popular by sharing their financial gains with local residents, while maintaining his support for expanding US data center capacity.
"As the President of the United States, I have been watching Data Centers very closely, and have come to a very strong conclusion. New and large, in some cases gigantic, Data Centers are mandated by me to make their own electricity, and give or sell any excess back to the local community, or grid, and therefore there is electric price increase. In fact, there could be a substantial decrease.
Other elements likewise! If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a 'dividend.' I have watched the process closely, and Data Centers that were highly unpopular in a certain area, have become extremely popular when a financial deal is struck.
MAKE DEALS, and get them built!!! GREAT FOR THE U.S.A. President DJT" Trump wrote.
The proposal comes as opposition to data center construction grows ahead of the midterm elections. An ABC News/Washington Post/Ipsos poll released Wednesday found that 72 percent of respondents opposed building new data centers in their communities. A Gallup poll conducted in March found that 71 percent opposed establishing AI data centers in their areas.
Several Republican candidates have called for tighter restrictions, including Ken Paxton in Texas, Mike Rogers in Michigan and John Husted in Ohio. In Iowa, Republican Senate candidate Ashley Hinson said decisions about building AI data centers should be made at the local level, according to Al Jazeera.
Trump has previously defended the industry and taken steps to accelerate construction. An executive order issued last year called for faster permitting and environmental reviews and supported using federal land for data center development. He has also backed a voluntary pledge by AI companies to cover the full cost of the electricity their facilities consume, without endorsing binding federal restrictions.
Marc Boroditsky, chief revenue officer of AI infrastructure company Nebius, said the idea of directing financial benefits to communities deserved consideration. Speaking to CNBC at Nvidia's GTC Berlin conference, he said the company was open in principle to discussing community investment.
"There could be 'some sort of way where the rewards are actually funneled back to the community,'" Boroditsky told CNBC's Arjun Kharpal.
Boroditsky said communities already receive some benefits through tax revenue and suggested that additional arrangements could create more direct economic opportunities.
"We see it today in terms of the tax revenue that are arriving. I could see something like a benefit of some sort that's more direct economic opportunity for the community as well," he said.
He also described possible community benefits beyond direct payments, including investment in education, employment training and broader economic development.
"A dividend is being paid in different forms — investing in education, job development, overall economic development. The concept that the president identified... it's not crazy to consider something like that," Boroditsky said.
Energy availability remains a major obstacle to the expansion of AI infrastructure in the United States and Europe. Electricity grids face growing demand from large users, while developers compete for sites with sufficient power capacity and must navigate local permitting requirements.
Chase Lochmiller, CEO of computing infrastructure firm Crusoe, described access to electricity as a central challenge for the industry during the Berlin conference.
"Energy is always a bottleneck, and trying to find powered land and areas that we can build large-scale AI factories is a big focus for us," Lochmiller told CNBC.
He said companies must also work through regulatory approvals and local concerns to bring projects online.
"Increasingly there's a lot of policy permitting and just working through local communities to make sure that everything can come online effectively," he said.
Financial risks are also drawing attention as the cost of AI infrastructure rises and companies increasingly rely on debt financing. Data center stocks came under pressure during the week as investors questioned the sector's financial outlook.
HSBC CEO Georges Elhedery cautioned investors against treating all infrastructure agreements as equally attractive, emphasizing the need to assess contract terms and pricing.
"One has to be selective," Elhedery told CNBC's Dan Murphy on Tuesday.
He said the quality of tenant agreements and the prices attached to contracts were important considerations because some arrangements could prove more difficult to support financially.
"You have to look at the quality of the tenancy agreements. You have to look at the pricing of these contracts. Not all of them are of that level of virtuosity that you can support strongly. Some of them may be more challenging," Elhedery said.
Data center operators have also reached agreements to help finance upgrades to local electricity grids, while some facilities can adjust their electricity consumption to help stabilize grid demand. However, experts have warned that the rapid expansion of AI infrastructure could still push electricity prices higher for consumers.
What's Your Reaction?
-
0
Like -
0
Dislike -
0
Funny -
0
Angry -
0
Sad -
0
Wow