Artificial Intelligence – President Donald Trump has said the United States will allow private companies to build their own power generation facilities to support the rapid expansion of artificial intelligence infrastructure, citing what he described as extraordinary electricity requirements driven by the technology sector.

Rising Energy Needs of AI Infrastructure

In an interview with Fox Business host Larry Kudlow, Trump argued that artificial intelligence systems require an unprecedented level of power, far exceeding traditional industrial consumption patterns. He said the surge in demand cannot be accommodated immediately by the existing national grid.

According to Trump, the scale of electricity needed to operate advanced AI data centers and computing hubs is immense. He suggested that the current grid system cannot be upgraded quickly enough to match the pace at which new facilities are being developed.

Companies Allowed to Generate Their Own Power

To address the shortfall, Trump said his administration is permitting companies constructing large industrial and technology plants to establish dedicated power units alongside their primary facilities. These privately built power plants would enable firms to meet their operational needs without waiting for broader grid expansion.

Under the approach described by Trump, businesses developing major AI and manufacturing projects would effectively operate as independent utilities. He explained that these facilities would generate their own electricity and use it internally, reducing pressure on public infrastructure.

Any excess electricity produced beyond their operational requirements would be supplied back to the national grid, potentially supporting surrounding communities and industries.

Flexible Energy Sources for New Facilities

Trump indicated that companies would have flexibility in choosing their energy sources, depending on project requirements and regional conditions. Options could include nuclear power, oil and gas, and coal-based backup systems.

The proposal comes at a time when energy policy is closely tied to industrial competitiveness and national security. Governments around the world are evaluating how best to expand power generation capacity while balancing environmental commitments and economic growth targets.

US Position in the Global AI Competition

During the interview, Trump also asserted that the United States holds a leading position in the global race to develop artificial intelligence technologies. He linked the AI sector’s growth to broader economic expansion, highlighting what he described as large-scale investment and construction activity across the country.

Trump pointed to ongoing development of factories, technology campuses, and industrial plants as part of a wider strategy to strengthen domestic manufacturing and reduce reliance on overseas supply chains. Energy production, he suggested, plays a central role in that strategy.

Broader Implications for Energy Policy

The rapid rise of AI-driven infrastructure, including data centers and semiconductor manufacturing facilities, is widely expected to increase electricity consumption significantly over the next decade. Analysts have noted that high-performance computing systems require continuous power supply and advanced cooling technologies, both of which contribute to higher energy use.

In response, policymakers in several major economies are considering a combination of grid modernization, nuclear expansion, and renewable energy deployment to ensure stable and sustainable power availability. The debate over how to meet AI-related energy demand is becoming increasingly prominent in discussions around economic policy and climate planning.

India, among other emerging technology hubs, is also expanding its artificial intelligence and semiconductor ecosystem. Officials there are monitoring global strategies to understand how large-scale data infrastructure can be powered efficiently while maintaining energy security, industrial growth, and environmental goals.

Trump’s proposal to allow private power generation for AI facilities reflects the growing intersection of technology policy and energy planning, as countries position themselves for the next phase of digital and industrial transformation.