Trump Adviser questions US power use for AI users in India

White House adviser Peter Navarro has questioned why US electricity is powering AI services accessed abroad, particularly in India, signalling possible policy action as data centres drive up domestic power costs amid rising trade tensions.

White House trade adviser Peter Navarro has reignited controversy by questioning why American resources are being used to support artificial intelligence services accessed outside the United States, with a pointed reference to India.

Speaking on Real America’s Voice with former White House chief strategist Steve Bannon, Navarro argued that US-based AI platforms consume domestic electricity while serving large numbers of overseas users. Referring to ChatGPT, he said the platform operates on American soil and relies on US power infrastructure, even as its user base expands rapidly across countries such as India and China.

“Why are Americans paying for AI in India?” Navarro asked, adding that a significant share of electricity consumed by AI data centres is being used to support users abroad. He described the scale of projected power consumption by AI companies as alarming and warned that it could have serious implications for US electricity costs.

Navarro indicated that the Trump administration is closely examining the issue and suggested policy action could follow. “We’re looking very carefully at this whole problem of AI data centres driving up the cost of electricity for Americans. You can expect strong action from President Trump on this,” he said.

His remarks come against the backdrop of escalating trade tensions between Washington and New Delhi. The Trump administration has recently imposed steep tariffs on Indian goods, citing concerns over India’s continued purchases of Russian oil and stalled trade negotiations.

Navarro, known for his hardline views on India, has previously accused New Delhi of maintaining high tariff barriers and indirectly supporting Russia’s war in Ukraine. India’s Ministry of External Affairs has earlier dismissed his statements as “ill-informed” and “unacceptable.”

The renewed focus on AI infrastructure highlights broader concerns around the global expansion of platforms such as ChatGPT. As usage surges across international markets, particularly in populous countries like India and China, pressure on US-based energy grids and data infrastructure is increasing, raising questions about cost-sharing, regulation and the future geography of AI computing.