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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A White House official noted that the draft is “outdated and no longer accurate” but did not specify which sections had been revised.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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Pentagon and Justice Department form joint task force to combat media leaks

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US Secretary of Defense Pete Hegseth announced on Monday that the Department of Defense and the Department of Justice have established a joint task force as part of efforts to prevent the unauthorized disclosure of sensitive information to the public.

Hegseth stated that the Office of the General Counsel (OGC) of the Department of Defense will have the authority to request and receive all information, support, and records across the Pentagon related to media leak investigations.

The Defense Secretary noted that all departments and personnel within the ministry will prioritize these requests. He added that a complete and comprehensive response to any instruction issued by the OGC under this authority must be provided within two days of the submission of the request.

“Leaked information risks lives. These new tools and processes will greatly assist us in protecting our collective strength. Our nation’s security cannot be a bargaining chip for those chasing instant headlines,” Hegseth said in an approximately two-and-a-half-minute video message published on the social media platform X.

Hegseth also stated, “Access to classified and confidential information is a sacred trust, and those who betray this trust will face the full force of the law.”

The announcement of the task force came a few days after the Department of Justice issued subpoenas to four New York Times reporters. The journalists, summoned to testify before a federal grand jury, had reported on security concerns regarding President Donald Trump’s flight to Türkiye for a NATO summit on an aircraft donated by Qatar.

The subpoenas drew sharp criticism from The New York Times and press freedom advocates. Opponents argue that the government is attempting to intimidate news organizations.

“Our journalists report the facts and defend the American public’s right to know how their government operates and how taxpayer dollars are spent,” New York Times attorney David McCraw said in a statement. “This brazen action is nothing less than an attempt to deter journalists from doing their jobs, thereby preventing the public from learning what is happening in the country.”

Hegseth has been taking steps to prevent leaks to the press since the beginning of his tenure at the Pentagon. Last year, the department launched investigations into personnel alleged to have leaked classified information to the media and threatened to administer polygraph tests.

Leak allegations were also directed at some of Hegseth’s advisers last year. Former senior adviser Dan Caldwell and former deputy chief of staff Darin Selnick are among those individuals. Caldwell, Selnick, and Colin Carroll, the former chief of staff to Deputy Secretary of Defense Stephen A. Feinberg, were first suspended and subsequently dismissed from their positions and removed from the Pentagon as part of the internal leak investigation.

A government official, speaking to The Hill in mid-March, stated there was no evidence that Caldwell, who began working at the Office of the Director of National Intelligence (ODNI) earlier this year, had leaked information from the Pentagon.

Defense Secretary Hegseth has previously been the target of criticism himself for allegedly sharing sensitive information. Last year, Hegseth discussed planned US strikes against the Houthis in Yemen in a Signal group chat to which an editor of The Atlantic magazine had been mistakenly added. A report published in December by the Pentagon’s Office of the Inspector General determined that Hegseth had compromised military security and violated department policy by using the Signal application on his personal mobile phone.

“It is highly ironic that Hegseth himself shared sensitive national defense information with his wife over Signal last year and faced no consequences, yet now speaks of the need to protect this information,” said former Pentagon spokesperson John Ullyot. “In 2012, CIA Director David Petraeus resigned from his post for a similar situation involving his girlfriend, and was sentenced in federal court to two years of probation and a $10,000 fine.”

Ullyot, who also served as the spokesperson for the National Security Council during Trump’s first term, told The Hill on Monday: “The President deserves better from his national security leaders. Hegseth should start holding himself accountable before holding others accountable.”

Reporters have been largely blocked from entering the Pentagon after Hegseth revoked access to most of the facility. Pentagon correspondents returned their press credentials in October, refusing to sign a new media policy that required a commitment not to solicit unauthorized materials.

Hegseth and his supporters argue that the policy will protect national security by preventing the leak of classified information. Press freedom groups and critics, conversely, characterize the practice as a violation of the constitutional rights of journalists.

Most recently, the department further restricted press access by declaring the Pentagon building a classified space and banning journalists from entering.

Offering historical references in his statement on Monday, Hegseth said, “Leaking sensitive national defense information and secrets is a betrayal of the men and women who wear the uniform of our country. This is a principle as old as the history of warfare, reaching back to the founding of our republic in the United States. George Washington himself combated leaks, insider threats, and espionage.”

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SpaceX shares fall 40% from peak to approach IPO floor as regulatory scrutiny weighs

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Shares of the American aerospace company SpaceX fell to as low as $136.78 at the trough of the trading session on Monday, July 13, representing a 5.87% decline compared to the close of trading on July 10. According to data from the US-based NASDAQ exchange, this retreat marks a depreciation of approximately 40% from the company’s historic peak of $225.64, which was recorded on June 16. With this latest decline, the company’s shares have approached their initial public offering (IPO) price threshold of $135.

As of 21:25 Moscow time on the trading day in question, the shares continued to trade at $137.4, down 5.4%.

The downward trend in the shares was driven by reports that the US Federal Aviation Administration (FAA) had concluded its investigation into the emergencies and malfunctions during the May 22 launch of Starship, the largest and most powerful rocket model developed by SpaceX.

According to CNBC, the agency reviewed and approved the findings and corrective measures submitted by the company following its internal investigation into the incident.

The Starship project, a massive, reusable rocket designed to carry crew and cargo to the Moon and Mars and to perform other space missions, is considered one of the most critical elements of Elon Musk’s space program.

In a statement issued by the FAA, it was noted that following the approved corrective actions, SpaceX is permitted to begin preparations for the Starship Flight 13 flight, provided that the company meets all safety requirements and licensing conditions.

The FAA had previously issued a statement regarding the malfunction during the launch attempt at the end of May. The statement noted: “The anomaly occurred during the Super Heavy booster’s flip maneuver over the Gulf of America.”

The region referred to as the Gulf of America by US authorities in official correspondence is commonly known as the Gulf of Mexico.

According to official data, the booster parts fell within the boundaries of pre-established hazard areas. Six flights were delayed and five aircraft remained in holding patterns for a period due to the incident, though no changes were made to flight routes.

SpaceX shares, which began trading on the NASDAQ exchange at the beginning of June, gained 25% at the opening. As part of the initial public offering, the company offered 555.6 million shares for sale at a fixed price of $135 per share.

The SpaceX IPO was recorded as the largest initial public offering in financial history. The company initially raised $75 billion, and the total funds raised reached $85.7 billion after consortium members exercised their over-allotment option to purchase an additional 83.3 million shares.

In a statement to his employees, company founder Elon Musk stated that going public was necessary to generate capital during a phase of rapid growth. It was announced that the proceeds would be used to complete the development process of the Starship rockets, bring them to commercial readiness, and expand the Starlink satellite network.

The post-IPO surge in SpaceX shares had briefly made Elon Musk the world’s first trillionaire. Bloomberg had estimated Musk’s wealth at $1.05 trillion, while Forbes valued it at $1.1 trillion.

However, with the decline in share prices and the company’s market value that began in late June, Musk lost his trillionaire title after holding it for 12 days.

According to an analysis by Bloomberg, the decline was driven by SpaceX’s preparations to issue at least $20 billion in bonds to finance artificial intelligence projects, alongside the signing of a multi-billion-dollar agreement with AI startup Reflection AI to provide computing resources.

Assessments by S&P Global projected that SpaceX will continue to incur expenditures without generating revenue until at least 2029.

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Trump notifies Congress of renewed war with Iran, resetting War Powers clock

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US President Donald Trump has formally notified lawmakers that the country is back at war with Iran, according to an official notification sent to Congress over the weekend.

In the letter dated July 10 and obtained by Politico, Trump stated that airstrikes beginning on July 7 constituted “military actions consistent with my responsibility to protect Americans and US interests both at home and abroad.”

The notification triggers a new 60-day statutory window under which the US administration can utilize military force in the region without prior congressional approval.

The conflict, which has repeatedly paused and restarted over control of the Strait of Hormuz—a crucial chokepoint for global energy supplies—has become a persistent challenge for the Trump administration.

Trump has expressed frustration over the failure to secure a peace agreement with Iran, while congressional Republicans remain concerned about being blamed for rising fuel prices ahead of the upcoming midterm elections.

On Monday, Trump intensified military pressure on Tehran, declaring that the US would reimpose a blockade on the region, seize control of the Strait of Hormuz, and levy fees on transiting vessels.

Ceasefire process officially ends

The notification to Congress follows Trump’s announcement that a two-month-old ceasefire with Iran has officially ended.

The ceasefire, originally declared in April, had been fragile from the outset due to reciprocal attacks by both nations. Despite the friction, the Trump administration had previously maintained that a full-scale war had not resumed.

Officials from US Central Command (CENTCOM) announced that US forces have struck more than 300 Iranian military targets over the past week in retaliation for Tehran’s hostile actions in the Strait of Hormuz.

On Monday, CENTCOM released a statement confirming that US forces had conducted additional airstrikes against Iran “at the direction of the Commander-in-Chief.”

“These strikes will continue to impose heavy costs on Iranian forces, degrading their capability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” the statement read.

War powers debate

Trump had previously notified Congress that the war, which began in February, had “ended” in May, thereby resetting the 60-day statutory clock that would otherwise require the cessation of military operations without congressional authorization.

With the April ceasefire intended to run indefinitely, the White House argued that the timeline mandated by the War Powers Act had been paused.

However, anti-war lawmakers in Congress challenged this interpretation. They argued that the government was misapplying the law, noting that even when major combat operations subsided, the US Navy maintained its blockade to exert pressure on Tehran.

The new notification complicates ongoing efforts within Congress to limit military action against Iran. Last month, the Senate passed a symbolic resolution calling for an end to the hostilities, signaling waning support for Trump’s military campaign against Tehran.

The resolution, which passed 50 to 48 after four Republican senators voted with Democrats, sought to make congressional approval a requirement for continued military operations.

A similar measure had previously passed the House of Representatives by a vote of 215 to 208, also drawing the support of four Republicans.

The legislative impact of these measures remains limited, however, as joint resolutions are not sent to the president for signature, and any bill seeking to restrict executive war powers would face a certain White House veto.

In his letter to Congress, Trump emphasized that US military forces remain deployed to counter threats against allies.

“United States Armed Forces remain postured to take additional steps, as necessary and appropriate, to address further threats or attacks against the United States, its allies, or its partners, and to ensure that the Government of the Islamic Republic of Iran ceases to pose a threat to the United States and its partners,” Trump wrote.

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