Trump Highlights Oil Growth, Shifts AI Energy Costs
President Donald Trump used his State of the Union address to reinforce energy production as a cornerstone of his economic strategy, highlighting increased oil and gas output alongside new measures aimed at managing rising electricity demand from artificial intelligence and data centers.
The president pointed to U.S. oil production rising by more than 600,000 barrels per day and record natural gas output, arguing that expanded domestic supply has helped push gasoline prices below $2.30 per gallon in most states. The administration continues to frame higher production and deregulation as key drivers of lower consumer costs and stronger economic performance.
Beyond fossil fuels, Trump addressed growing concerns about surging electricity demand linked to artificial intelligence infrastructure and large-scale data centers. With utilities warning that the ageing grid could struggle to accommodate rapid load growth, the administration announced a new “ratepayer protection pledge” requiring major technology companies to provide their own generation capacity when developing new data centers.
Under the approach, companies would build or secure dedicated power supplies to prevent additional demand from driving up household electricity bills. The proposal reflects mounting political sensitivity around affordability as AI-driven energy consumption accelerates.
Taken together, the measures underscore the administration’s broader “energy dominance” agenda — prioritising domestic production, infrastructure expansion and private-sector investment as tools to manage demand growth while limiting price volatility.
With electricity consumption expected to rise significantly over the coming decade, the strategy signals a clear policy direction: expand supply, shield consumers from cost spikes, and rely on market-driven generation to meet the next wave of energy demand.