Technology1/22/2026•The Guardian

Why Trump is worried datacenters might cost his party an election

Why Trump is worried datacenters might cost his party an election

The news article discusses President Trump's concerns about the impact of datacenters on the US electricity market and the potential political implications for his party in the upcoming November elections. The president is worried that the growing energy demands of datacenters, which are often granted tax breaks and discounted electricity rates, could lead to sharply rising energy costs for consumers. He believes that this resentment towards higher energy prices could hurt his party's electoral prospects. To address this issue, Trump has taken two recent actions. First, he announced that Microsoft would have to pay full property taxes and accept no tax reductions or electricity rate discounts for its datacenters. Second, the president is curbing renewable energy projects that could increase electricity supply and potentially offset the energy demands of datacenters. The article suggests that Trump's efforts to have datacenters pay more for electricity are driven by his political concerns, as he aims to avoid any backlash from rising energy costs that could impact his party's performance in the November elections.

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