The Trump administration is expected to call on major U.S. technology companies and data center developers to voluntarily commit to a compact designed to ensure power-needy data centers do not raise household electricity prices or undermine grid reliability.[1] The initiative comes amid a nationwide surge in energy demand, driven largely by the rapid proliferation of data centers that power the artificial intelligence (AI) boom.[2] Although the compact would be voluntary and details on monitoring or enforcement remain limited, it signals a clear expectation from federal policymakers that large technology firms “pay their own way” for the incremental costs their facilities impose on the grid.
Navigating Contractual Considerations in the AI Data Center Construction Boom
The explosive growth of artificial intelligence (AI) is transforming U.S. data center construction, creating new opportunities and challenges across the construction, energy, and technology sectors. Demand for digital infrastructure is surging, requiring massive amounts of energy, larger facilities, and driving record-breaking competition amid resource constraints.[1]
Federal Circuit Court of Appeals Issues Ruling Deeming Tariffs Under IEEPA Unlawful
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit affirmed a ruling by the U.S. Court of International Trade, holding that President Trump overstepped the authority provided by Congress under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA) to impose broad tariffs aimed at addressing drug trafficking, illegal migration, and international trade imbalances. The court deemed unlawful those tariffs imposed on Canada, Mexico, and China meant to curb the flow of illicit drugs and illegal migration, and reciprocal tariffs imposed on dozens of countries throughout the world to curb trade imbalances (collectively, the IEEPA Tariffs).
Navigating the Solar Industry’s Path Through Tariffs and Growth
In 2024, the solar energy generation industry experienced its largest-ever annual rise globally, fueled by China’s 44% solar output boost from January to November 2024.[1] Solar energy output also continues to expand domestically, with the U.S. generating approximately 283 terawatt-hours in 2024, comprising a 14.7% share of the global market. In fact, domestically, solar energy now accounts for more than half of all new electricity on the grid, and, with a continued focus on renewable energy, is projected to continue to grow.[2]