xAI Commits to 1.2GW Power Development Under White House Energy Pledge

Mar 9, 2026
President Donald Trump announced that major technology companies, including xAI, signed the Ratepayer Protection Pledge to ensure AI data center expansion does not raise electricity costs for U.S. households. xAI will develop 1.2 gigawatts of power for its Memphis-area supercomputer site as part of the agreement.

Under President Donald Trump’s leadership, America’s leading AI and technology companies signed the Ratepayer Protection Pledge at the White House, according to an announcement on the White House website. The pledge ensures that the growth of AI data centers will not increase electricity costs for U.S. households. Companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI agreed to cover the costs of new power generation needed to support their facilities.

As part of the initiative, SpaceX President and COO Gwynne Shotwell confirmed that xAI will develop 1.2 gigawatts of power to support its AI supercomputer near Memphis, Tennessee. The installation will provide sufficient backup capacity to power the city of Memphis and the nearby town of Southaven, Mississippi. xAI also plans to build new substations and invest in grid infrastructure to improve regional stability.

The Ratepayer Protection Pledge was created to address rising energy demands from AI infrastructure while maintaining affordability for residential consumers. Shotwell said xAI will also construct water recycling plants capable of protecting billions of gallons from the local aquifer each year, while employing thousands of workers from the Memphis area.

Other signatories, including Amazon Web Services, Google, Meta, Microsoft, and Oracle, expressed their support for the pledge, emphasizing commitments to fund their own energy needs and collaborate with utilities to strengthen the U.S. electrical grid.

We hope you enjoyed this article

Consider subscribing to one of our newsletters like Silicon Brief or Daily AI Brief.

Also, consider following us on social media:

Free newsletter

Silicon Brief

Weekly coverage of AI hardware developments including chips, GPUs, cloud platforms, and data center technology.

Industry analysis

2025 Global Business Services Agenda: Gen AI Takes Center Stage

The Hackett Group

This industry analysis by The Hackett Group explores the transformative impact of generative artificial intelligence (Gen AI) on global business services (GBS) in 2025. The study highlights the shift from exploration to acceleration of Gen AI initiatives, with 89% of executives advancing these projects to improve customer satisfaction, innovate products, and reduce costs. The report also discusses the challenges and strategies for successful Gen AI adoption, emphasizing the need for a technology-enabled operating model and the importance of reskilling the workforce.

Read more
Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.