RESOLVING THE LEDGER
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President Trump defended the expansion of data centers in an interview with his former fixer, Michael Cohen, that aired in full on Sunday.
Why it matters: Trump's support comes as data centers face growing backlash in both red and blue states.
What he's saying: Trump told Cohen during their interview that the U.S. was leading China in AI "by a lot" and that data centers were not taking power from the grid.
"They're making their own power plants. They're building the most beautiful, you've never seen power plants like this," Trump said during the interview that was recorded last week.
"Communities that don't take a data center, they're making a mistake" because data centers create "tremendous amounts of jobs and money," Trump added.
Reality check: Some data centers are developing behind-the-meter power plants that directly supply their facilities, but others will draw electricity from the grid.
The big picture: Trump's comments come as Texas Gov. Greg Abbott said data center companies "dug their own grave" and deserve the backlash they're facing after failing to win community support.
Abbott has directed state regulators to make data centers pay the full cost of the electrical infrastructure they require, while Pennsylvania Gov. Josh Shapiro (D) imposed restrictions and New York Gov. Kathy Hochul (D) ordered a one-year moratorium on hyperscaler data centers.
Context: The Trump administration has taken steps to ease some environmental requirements for data centers while pushing tech companies to cover more of the electricity costs associated with the AI buildout.
Last month, the Environmental Protection Agency issued guidance saying power plants not connected to the public grid aren't subject to the Clean Air Act's Acid Rain Program, a move the agency said would expand opportunities for dedicated data center power generation.
Trump has also pushed data center operators to build, bring, or buy the power they need and cover the costs of related infrastructure through his Ratepayer Protection Pledge.
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