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Peter Navarro questions US electricity powering AI services like ChatGPT for users in India, raising trade and energy concerns amid rising US electricity costs.
Peter Navarro questions US electricity powering AI services like ChatGPT for users in India, raising trade and energy concerns amid rising US electricity costs. (REUTERS/Kent Nishimura
US President Donald Trump’s trade adviser, Peter Navarro, has ignited a fresh political and economic debate by questioning why American electricity and infrastructure are being used to power artificial intelligence services that cater to users overseas, particularly in India.
Speaking on the podcast Real America Voice with former White House chief strategist Steve Bannon, Navarro raised concerns about US-based AI platforms operating domestically while serving millions of users abroad. He singled out OpenAI’s popular chatbot ChatGPT, arguing that its growing global footprint has trade and energy implications for the United States.
“Why are Americans paying for AI in India?” Navarro asked during the discussion. “ChatGPT operates on US soil and uses American electricity, servicing large users of ChatGPT in India and China and elsewhere around the world.” According to him, this raises fundamental questions about whether US taxpayers and consumers should bear the cost of powering AI systems that primarily benefit foreign markets.
Focus on electricity costs and data centres
Navarro’s remarks come amid mounting concern in Washington over the rapid expansion of AI data centres, which require vast amounts of electricity to run powerful servers around the clock. He suggested that the boom in AI infrastructure is already contributing to higher power prices for American households.
“We’re looking very, very carefully at this whole problem of AI data centres driving up the cost of electricity for Americans,” Navarro said. “You can expect strong action from President Trump on this. So keep an eye on that.”
Trade tensions with India in the backdrop
Navarro’s statements come at a sensitive moment in US–India relations. Washington and New Delhi are engaged in trade talks following a downturn after the Trump administration imposed a steep 50% tariff on Indian imports. This included a 25% additional duty linked to India’s continued purchase of Russian oil, a move the US has criticised amid the war in Ukraine.
Navarro has been one of the most vocal critics of India’s energy policy. In earlier remarks, he accused New Delhi of indirectly financing Russia’s war effort in Ukraine by buying discounted Russian crude and reselling refined products at higher prices on the global market.
“When India buys Russian oil at a discount and then Indian refiners, in partnership with Russian refiners, sell it at a premium to the rest of the world, Russia uses that money to fund its war machine,” Navarro had said.
US government moves on AI and energy
Against this backdrop, the Trump administration on Friday announced plans to work with US states to ensure that the rapid growth of the AI sector does not result in higher electricity bills for millions of Americans. According to data from the Energy Information Administration, the average electricity bill in the US rose by 5% in October compared with the same period last year, heightening political sensitivity around energy costs.
AI companies have increasingly come under scrutiny for the environmental and economic impact of large-scale data centres, which consume enormous amounts of power and water.
Washington D.C., United States of America (USA)
January 18, 2026, 20:04 IST
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