Cost Internalization
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Trump trade adviser Navarro says administration may force data center builders like Meta to 'internalize' costs
CNBC· 2026-02-15 19:39
Core Viewpoint - The White House is considering a plan to require data center builders to internalize their operational costs, including electricity and water, amid rising utility prices and economic dissatisfaction among voters [2][3]. Group 1: Economic Context - Electricity prices have increased by 6.9% year over year in 2025, contributing to affordability issues for consumers [3]. - Polls indicate that voters are increasingly blaming the Trump administration for rising costs, with Democrats gaining a 5.2-point lead in the generic ballot ahead of the November 2026 midterms [4]. Group 2: Government Actions - A pact signed by several states and the White House in January calls for technology companies to finance $15 billion in new generation capacity within the PJM grid operator [6][7]. - The administration is negotiating with tech giants, including Microsoft, to ensure that data centers do not increase utility costs for consumers [9][10]. Group 3: Industry Impact - The White House's potential plan aims to address the financial burden that data centers impose on utility systems, particularly in regions heavily populated with data centers like northern Virginia and New Jersey [6][8]. - Energy Secretary Chris Wright emphasized the urgency of building reliable power plants in the PJM region to mitigate risks associated with data center operations [8].