Trump Touts AI Energy Pledge, Drug Pricing Site in State of the Union

President Donald Trump delivered the first State of the Union address of his second term Tuesday night, giving brief but notable mentions to technology and AI. 

The record-breaking one hour and 47 minute speech covered a variety of topics, mostly centered on the economy and domestic policy. But in a handful of moments, the president pointed to AI’s growing energy demands, promoted the federal prescription drug pricing website and recognized a national student technology initiative.  

Here’s what the president had to say about technology and AI during the address: 

AI Data Centers 

Electricity rates have increased considerably in the last year. In January, rates were up 6.3 percent from the previous year, according to the Bureau of Labor and Statistics. Trump said much of the issue with AI data centers consuming so much power is due to dated power grids. In an effort to alleviate concerns about usage, Trump said he will require major companies to sign a pledge to produce their own electricity. It is unclear which companies have agreed to the pledge and how it will be enforced.

“And many Americans are also concerned that energy demand from AI data centers could unfairly drive up their electric utility bills. Tonight, I’m pleased to announce that I have negotiated the new ratepayer protection pledge. You know what that is? We’re telling the major tech companies that they have the obligation to provide for their own power needs. They can build their own power plants as part of their factory, so that no one’s prices will go up, and in many cases, prices of electricity will go down for the community, and very substantially then.”  

TrumpRX  

Earlier this month, the White House launched a federal prescription pricing platform known as TrumpRx, a government-run website that allows patients to compare prices and purchase some medications. The platform reflects the administration’s “most-favored-nation” pricing policy, which aims to align U.S. drug costs with lower international rates.  

“I took prescription drugs — a very big part of health care — from the highest price in the entire world to the lowest. That’s a big achievement. The result is price differences of 300, 400, 500, 600% and more, all available right now at a new website called trumprx.gov. … So now I’m calling on Congress to codify my most-favored nation program into law.” 

The digital marketplace model is intended to give patients direct visibility into medication costs. By making drug pricing searchable and comparable online, the administration argues that technology can serve as a cost-control mechanism through transparency and competition. Questions remain regarding TrumpRx’s impact on deductibles and out-of-pocket maximums for people who already have insurance.  

AI in Education 

Regarding First Lady Melania Trump: “Over the past year, she has had an incredible impact championing AI legislation, advancing a landmark executive order on foster care and helping secure $30 million to launch the Melania Trump Foster Youth to Independence initiative. … And students and educators in every state have joined the First Lady’s efforts in the Presidential AI Challenge keeping America’s next generation position to succeed and strongly succeed in the future.” 

In August, the first lady launched the Presidential Artificial Intelligence Challenge, a program for K-12 students and educators. The programs requires participants to complete a project that “involves the study, development or use of an AI method or tool to address community challenges.”   

The Foster Youth to Independence Initiative is a Housing and Urban Development program that provides housing assistance for youth transitioning out of foster care and at risk of becoming homeless.  

What Wasn’t in the Speech 

Presidents typically use the State of the Union to call on Congress to enact legislation and pass policy reform, but Trump’s speech largely avoided broader technology issues. Missing were discussions of AI ethics, safety, regulation, cybersecurity and data privacy.