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Trump administration pushes Big Tech toward voluntary AI data center energy pact

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The Trump administration is seeking public commitments from some of the world’s largest technology companies to a new agreement governing the rapid expansion of artificial intelligence (AI) data centers.

A draft agreement obtained by POLITICO outlines commitments designed to ensure that energy-intensive data centers do not drive up household electricity prices, strain water resources, or compromise grid reliability. The proposal also requires companies driving this surge in demand to bear the full cost of building the necessary new infrastructure.

The proposal, which remains in draft form and is subject to change, is framed as a “voluntary agreement” between President Donald Trump and major US tech firms and data center developers. The accord could bind AI giants such as OpenAI, Microsoft, Google, Amazon, Meta, and others to a broad set of energy, water, and community principles.

While the administration intends to announce the initiative during a high-profile White House event, the program has not yet been formally unveiled. It remains unclear which companies have already agreed to the terms or have been invited to participate.

This initiative represents one of the most ambitious efforts to shape AI infrastructure without imposing direct regulation. It comes just one month after the White House issued an unprecedented call to the Mid-Atlantic power grid operator to lower electricity prices. Concerns are mounting that the massive energy consumption of data centers could push prices even higher, potentially becoming a political liability for an administration that has otherwise championed rapid and unfettered data center development.

The agreement is also seen as a way to highlight efforts to mitigate the influence of these corporations ahead of the midterm elections.

“As President Trump announced weeks ago, leading tech companies are working with the President to ‘pay their fair share’ for energy consumption as they build out data centers,” White House spokesperson Taylor Rogers said in a statement. “More to come soon!”

A White House official noted that the draft is “outdated and no longer accurate” but did not specify which sections had been revised.

The decentralized nature of the nation’s power grid means that for the proposed agreement to be enforceable, grid operators, state regulators, and utility companies must agree to establish rules or draft contracts that reflect these principles.

This push emerges as utility providers, regulators, and members of Congress warn that the explosive growth of data centers—warehouse-sized buildings housing the powerful chips and servers required for AI development—could overwhelm regional power systems and inflate electricity bills for consumers already struggling with the cost of living.

Energy Secretary Chris Wright expressed awareness of these concerns on POLITICO’s energy podcast:

“People are skeptical. They think, ‘Oh my god, this is going to make the situation worse and drive up my energy prices.’ I understand their concerns. We are in a dialogue with all hyperscale developers to ensure they are not just a long-term force for lowering grid prices, but also a short-term force for halting current price increases.”

Major tech companies, known as “hyperscalers,” are building increasingly large data centers to process advanced AI computations. At the core of the agreement is the requirement that AI data center developers pay 100% of the costs for the new electricity generation needed to serve their facilities.

The agreement also stipulates that companies sign long-term electricity contracts to ensure other customers are not left with the bill if a data center fails. Similarly, tech companies would commit to paying the full cost of any current or future transmission upgrades required to connect new data centers to the grid.

In parallel, tech companies would agree to cooperate with federal, state, and local regulators to set power and transmission rates that are “neutral in every way” and ideally lower residential electricity prices in the regions where they operate. To prevent companies from outsourcing these impacts, the principles would apply not only to data centers they own but also to capacity they lease or operate from third parties.

Electricity costs are already on the rise, having outpaced the rate of inflation last year. Utilities have requested record-breaking price hikes, and government data predicts that costs will continue to climb in the coming years.

Microsoft recently made a similar set of commitments, stating it would pay more for the electricity serving its data centers, cover additional infrastructure costs, and reduce water consumption. Microsoft also announced it would no longer accept local tax breaks—a measure not included in the White House draft agreement.

In a post on Truth Social last month, Trump praised Microsoft’s announcement and indicated he was working with other tech companies to ensure “Americans do not pay the bill for their electricity consumption.”

The federal government predicts that energy demand from data centers could triple between 2025 and 2028. This surge is believed to be driving up prices in the power grid covering parts of 13 Mid-Atlantic and Midwestern states.

A 2025 Bloomberg analysis found that electricity prices rose in areas immediately surrounding data centers, while a separate 2025 report from the Harvard Law School Environmental and Energy Law Program found that consumers were bearing the infrastructure costs of serving these facilities.

However, the White House and industry allies argue that data centers are not the culprits and could actually be a significant force for lowering electricity prices. A report released last week by the Edison Electric Institute, a trade group representing investor-owned utilities, argued that costs have not increased in most areas where data centers are located.

According to the report, well-designed data center tariffs and agreements that place more responsibility on Big Tech for new energy generation and infrastructure could help lower consumer costs. However, this requires state utility regulators to draft tariff agreements and electricity contracts that fully account for the costs incurred by tech companies.

Secretary Wright highlighted two states experiencing the largest spikes in electricity demand due to data center developments without corresponding price increases. North Dakota has seen an approximately 35% increase in electricity demand over the last five years, and Georgia has implemented price freezes.

“Nominal electricity prices in these states have not increased. The real price of electricity has dropped significantly during this five-year period,” Wright said. “You will see more explanations. You have likely heard of Google’s deal in Georgia, which froze electricity prices for three years. Later this year, you will hear about agreements where major data center investments are announced in proportion to a decrease in electricity prices.”

Other companies maintain they are already covering their own costs. Meta, for instance, stated it covers all its energy costs and pointed to a study it commissioned last year showing that the clean energy projects it supports provide additional generation without increasing costs for taxpayers.

The draft also integrates data centers more directly into grid reliability planning. Signatories would commit to using non-critical backup generation at new and existing facilities, in coordination with grid operators, to support stability and reliability during emergencies.

Companies would also agree to voluntarily allow the curtailment of new data center loads when necessary to ensure reliable electricity for American households—a growing concern for grid operators facing rising peak demand and extreme weather events.

The concept of grid flexibility and backup power is gaining traction in policy circles. Last year, Texas lawmakers passed a landmark bill requiring large power users, such as data centers, to reduce power or disconnect from the grid during emergencies. Other states and grid operators are exploring similar programs. During last month’s winter storm, Wright also called on grid operators to secure backup power from data centers.

Beyond energy, the agreement aims to address local opposition in rapidly growing data center hubs. Hyperscalers would commit to developing or securing sufficient water resources to support new facilities and ensure no negative impact on local water availability or quality.

The agreement also encourages companies to establish AI education awareness programs in surrounding communities and public schools and to adopt best practices to mitigate noise, traffic, and other disruptions affecting nearby residential areas.

The deal could be significant for companies seeking federal assistance to speed up grid connections—a major hurdle for AI infrastructure projects. In the draft, the federal government commits to supporting the expedited connection of new data centers to the bulk power system that transmits high-voltage electricity across regions.

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Bolsonaro reportedly leaves Brazil on jet linked to scandal-hit firm

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Flávio Bolsonaro fled Brazil on a plane belonging to the fleet of Argentine company Baires Fly, a firm linked to a businessman associated with a convicted drug trafficking conspirator, according to allegations.

The company, tied to an entrepreneur with business links to Federico “Fred” Machado, who faced drug trafficking charges in the US, is also named in a corruption investigation involving disability agency funds under the administration of Javier Milei.

Fórum Investiga, the investigative unit of Revista Fórum, uncovered these connections through court documents and public records in Argentina and the United States.

Sergio Daniel Mastropietro, a commercial broker for Baires Fly, was a business partner of Machado and currently faces money laundering and illicit association charges in connection with the scandal at Argentina’s National Disability Agency (ANDIS).

The company’s role drew scrutiny after the Argentine government confirmed early Wednesday that Bolsonaro entered the country with his wife and two daughters and boarded a private Baires Fly aircraft bound for Guayaquil, Ecuador.

According to Argentina’s National Directorate of Migration, the family crossed the border via the Tancredo Neves International Bridge between Foz do Iguaçu and Puerto Iguazú on Tuesday at 22:50.

The family boarded the plane at 23:30, and the Gulfstream G400, registered as LV-JQW, took off at 00:22 on Wednesday.

The journey followed an order by Federal Supreme Court Justice Alexandre de Moraes seizing Bolsonaro’s passports and barring him from leaving Brazil.

The drug trafficking link traces back to Argentine aviation businessman Federico Andrés Machado, known as Fred Machado, who was accused in the US of participating in an international ring tied to cocaine trafficking and money laundering.

Machado was a partner with Sergio Mastropietro in SO VAIN S.A., a company formed in 2010 for aviation-related ventures. Argentine investigations also documented shared travels, commercial ties, and common Buenos Aires addresses between the two men.

In February 2021, the US Department of Justice unsealed indictments against eight individuals for their roles in an international conspiracy involving narcotics trafficking, money laundering, and financial fraud.

Machado was among those indicted and was identified as an operator engaged in the purchase and sale of aircraft through his firm, South Aviation.

The investigation encompassed a network utilizing US-registered aircraft, several of which were seized in other nations while carrying large shipments of cocaine.

Machado was extradited from Argentina in November 2025 and subsequently reached a plea agreement with US prosecutors.

In August 2026, a federal court in Texas convicted him of conspiracy to commit money laundering and wire fraud.

The initial drug trafficking charge was dismissed as part of that plea agreement.

Machado’s commercial connection is with Mastropietro rather than directly with Baires Fly. The official owner of the company is Luis Grande, who has operated in Argentina’s private aviation sector for decades.

The other scandal involving Baires Fly centres on ANDIS, the agency responsible for providing assistance to people with disabilities in Argentina.

That inquiry examines allegations of contract steering, overbilling, kickbacks, and money laundering in questionable tenders during the Milei administration.

According to documents from the investigation led by federal prosecutor Franco Picardi, two ANDIS providers, Prolite Orthopedics and Probock, transferred 95.06 million Argentine pesos into a Baires Fly bank account on 10 September 2025. That sum represents approximately $62,000 based on exchange rates from 28 October 2026.

The payments occurred after Mastropietro sent the firm’s banking details to Miguel Ángel Calvete, who was identified as one of the figures behind the fraudulent scheme under investigation.

Following those transfers, invoices were issued for the advance purchase of flight hours on company aircraft.

Investigators suspect these commercial transactions were used to lend an appearance of legality to funds derived from irregular public contracts.

Financial tracking uncovered even larger sums. Documents reviewed by Argentine courts show Baires Fly billed five companies tied to the investigated contracts approximately 1.097 billion pesos, or around $720,000, between 2023 and 2025.

This figure reflects registered commercial transactions; it represents a fully confirmed amount of embezzled funds.

On 16 October, federal judge Ariel Lijo ordered formal charges against Mastropietro on suspicion of aggravated money laundering and illicit association.

The ruling also expanded charges against former ANDIS director and former Milei ally Diego Spagnuolo, alongside others allegedly involved in the conspiracy.

Argentina’s Federal Prosecutor’s Office stated that the probe revealed suspected fraud in contracts for medication, prosthetics, and equipment intended for assistance programme beneficiaries.

The airline maintains business relationships with figures across Argentine politics. In November 2023, days after winning the presidential election, Javier Milei used a Baires Fly plane to travel to the US. Luis Grande, the company’s owner, piloted the flight.

In the ANDIS investigation, Mastropietro denied managing Baires Fly or being formally part of the company, saying he acted only as an intermediary arranging aviation services.

The company maintains that it has no connection to the money laundering allegations.

The documents do not show that Bolsonaro was involved in the ANDIS scheme or in any drug trafficking activity.

There is also no evidence that Fred Machado played any role in arranging the flight.

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Rubio outlines Venezuela election plan, says US will not wait two years

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In the United States, the Trump administration has unveiled its plan to support electoral reforms in Venezuela and lead the country toward presidential elections.

US Secretary of State Marco Rubio told international journalists during a press conference on Monday that Venezuela’s current electoral infrastructure was “designed to rig elections”.

As the chief architect of the administration’s Venezuela policy, Rubio argued that this system must be overhauled quickly to enable a valid vote.

According to Rubio, talks between the government of Interim President Delcy Rodríguez and opposition factions led by Dinorah Figuera are moving toward a concrete timetable.

The sides are preparing to appoint a new Supreme Tribunal of Justice (TSJ) before the end of the year, followed immediately by the renewal of the National Electoral Council (CNE).

“We obviously need to use our leverage over the interim Venezuelan authorities to ensure that the process moves forward responsibly. Our goal is to hold elections,” Rubio said, welcoming what he described as “serious progress” in that direction.

The US secretary issued a warning, saying, “Whoever tries to derail the process will do serious damage to Venezuela.”

Speaking at a separate press briefing, an unnamed senior US Department of State official outlined the step to follow institutional renewal, according to a report by the Venezuelanalysis portal.

According to the official, once both the TSJ and the CNE are reconstituted, the Venezuelan presidency will be declared permanently vacant, triggering a constitutional six-month window to conduct elections under “competitive conditions”.

The same official stressed that political guarantees must be provided and media access rules regulated during this phase.

Advocating the inclusion of pro-government factions in the “transitional period”, the official said peaceful democratic transitions often require the cooperation of outgoing groups, citing Spain and Portugal as precedents.

Electoral timetable and judicial work accelerate

Asked about a definite election date, Rubio said the Rodríguez administration had complied with US timelines so far.

Emphasising that they would not wait two years for an election, Rubio said: “That is not going to happen. In the best-case scenario, I have two years and two months left in this job.”

Rubio’s remarks coincided with statements by Dinorah Figuera, who heads the opposition delegation in the negotiations with government representatives.

Figuera had predicted that presidential elections would take place in late 2027 or early 2028.

Meanwhile, during the third round of political dialogue in Venezuela, the parties agreed to review four pieces of legislation governing political participation, pluralism, and the autonomy of political organisations, including the Law on Political Parties, Public Meetings, and Demonstrations.

The discussions also addressed disqualifications from public office and the examination of legal frameworks governing political rights.

In parallel, Venezuela’s National Assembly officially initiated the process to renew all 32 justices of the Supreme Tribunal of Justice.

Applications from legal professionals seeking seats on the court will be accepted from Wednesday, 28 October until Wednesday, 11 November. The fourth round of dialogue is scheduled for 11 to 15 November.

Rodríguez and other senior Venezuelan officials have not yet commented on the US Department of State’s statements.

Machado’s return and convoy controversy

The White House’s assertions regarding Venezuelan reforms and elections coincided with the return of far-right opposition leader María Corina Machado to the country on Sunday.

Supporters of Machado, who had lived abroad for more than a year, called for their leader to be included in the ongoing negotiations.

Responding to questions about Machado’s return, Rubio said he had told the Rodríguez government “weeks ago” that she should be allowed to return to the country unhindered.

Denying claims that Washington obstructed Machado’s return, the Secretary of State said the opposition leader had merely been advised not to travel immediately following the twin earthquakes on 24 June.

Interim President Rodríguez, however, criticised the manner of the opposition politician’s return.

Characterising it as a “show” that could have been avoided, Rodríguez addressed Machado’s journey to Caracas at the head of a vehicular convoy covering 400 kilometres, following her appearance at a church in Lara state amid chants of “freedom” and calls for immediate presidential elections.

“The airports are right there. Let us stop putting on a show. Many people who benefited from this process aimed at peaceful coexistence and from the amnesty law were able to enter the country through the airport’s new transit structures,” Rodríguez said.

The interim president declined to reveal which route Machado had used to re-enter Venezuela.

Machado, who in recent years backed economic sanctions against Venezuela as well as foreign military intervention, left the country in December 2024 to travel to Oslo to receive the Nobel Peace Prize, which she subsequently dedicated as a gift to Trump.

While Machado and her party maintain that the government had previously barred her from returning seven times, Venezuelan authorities deny the allegation.

Asked whether the judiciary would act against Machado, Rodríguez said she hoped to see “remorse and a change of direction” from the opposition figure, adding that the opposition leader could make “some contribution to the country”.

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Defeated Flávio Bolsonaro flees Brazil for Miami despite travel ban

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Brazilian Senator Flávio Bolsonaro fled his country following his defeat in the presidential election and arrived in Miami on Tuesday.

According to a report by the O Globo newspaper, Bolsonaro was met upon his arrival in the US by his brother Eduardo.

Eduardo had moved to the US last year to lobby President Donald Trump to assist their father, former President Jair Bolsonaro, who was convicted of plotting a coup, and had lived there ever since.

A senior State Department official said early Tuesday that the US would grant visas to Flávio and his family.

Facing multiple criminal investigations in Brazil, Flávio Bolsonaro had been ordered to surrender his passports to the Federal Police by Tuesday, but failed to do so, according to a police official familiar with the matter.

Supreme Court Justice Alexandre de Moraes, whom the Bolsonaro family has long accused of political persecution, had demanded the surrender of the documents out of concern that the senator was a flight risk.

Bolsonaro’s loss to Luiz Inácio Lula da Silva in Sunday’s runoff election dealt a heavy blow to the family, which had sought to establish a political dynasty in Brazil.

The senator had made the release of his father Jair Bolsonaro, who was sentenced to 27 years in prison for plotting a coup after his 2022 election defeat, the central theme of his campaign.

Speaking to reporters early Wednesday after returning from a campaign trip in Texas, Trump said he would approve Bolsonaro’s entry into the US, though he added that he thought Bolsonaro was in Argentina.

Speaking in Texas on Tuesday afternoon, Trump avoided mentioning Bolsonaro, but repeated his unsubstantiated claims that the Brazilian election was rigged.

After criticizing Democrats as “the biggest election riggers”, Trump added, “Brazil is pretty good at that too.”

The US leader has long been an ally of the Bolsonaro family and had imposed tariffs on Brazilian goods last year in an unsuccessful attempt to help Jair Bolsonaro avoid prosecution in his coup case.

The Trump administration did not officially endorse Bolsonaro’s presidential bid. However, according to The New York Times, the State Department under Secretary of State Marco Rubio had worked behind the scenes ahead of the vote to strengthen Bolsonaro’s standing in Brazil.

On Tuesday morning, neither the police nor allies had any information regarding Flávio Bolsonaro’s whereabouts, after Infobae reported that he had crossed into Argentina and planned to travel to the US from there.

Brazilian police have no official record of Bolsonaro leaving Brazil, and the spokesperson for Argentine President Javier Milei denied that Flávio Bolsonaro had entered the country.

Several Bolsonaro allies told Bloomberg that they had tried to contact him but received no response.

“Fleeing Brazil is a disgraceful act,” Lula said at an event celebrating his 81st birthday.

Bolsonaro faces at least two federal investigations into money laundering allegations, one of which stems from his ties to the former owner of Banco Master SA, who was implicated in the largest bank fraud case in Brazil’s history.

The elder Jair Bolsonaro had also left for the US following his election defeat. He returned months later and was barred from holding public office for eight years for spreading false claims about Brazil’s electronic voting system ahead of the election, before later being convicted of plotting a coup.

On Monday, Flávio Bolsonaro abandoned plans to challenge the election results and posted a social media video stating that the Supreme Court had barred him from leaving Brazil.

Meanwhile, according to sources familiar with the matter who spoke on condition of anonymity to discuss private conversations, Moraes’s decision caused unease among members of the Supreme Court as well as officials in Lula’s government.

According to those sources, the Lula administration had wanted to focus on calming the country and moving past the polarization that flared during back-to-back electoral battles between the leftist leader and a member of the Bolsonaro family.

The administration viewed the move by Moraes, a polarizing justice who presided over Jair Bolsonaro’s case and has long faced censorship accusations from the Brazilian right, as counter to those aims.

Early Tuesday, Supreme Court Justice Flávio Dino ordered federal authorities to investigate possible illegal foreign funding for Bolsonaro’s presidential campaign, including through a group linked to US Vice President JD Vance.

The justice emphasized that the order did not prove illegal foreign funding had taken place, but noted that allegations raised during Brazil’s presidential campaign warranted an investigation.

Speaking at a press conference on Tuesday, Argentine government spokesperson Adrian Ravier said Bolsonaro had not requested asylum in Argentina.

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