'Why are Americans paying for AI in India?': Trump advisor Navarro flags data centres as next target

After slapping sweeping tariffs, the Trump administration is now turning its attention to artificial intelligence and the electricity costs powering it, with senior adviser Peter Navarro signalling that data centres serving global AI demand - including users in India and China - could be the next target of policy action.

Speaking to Real America's Voice, Navarro said the administration was closely examining how the rapid expansion of AI data centres is driving up electricity costs for American consumers, and suggested that President Donald Trump was preparing to act.

"We're looking very very carefully at this whole problem of AI data centers driving up the cost of electricity for Americans. You can expect strong action from President Trump on this. So keep an eye on that," he said. 

Navarro linked the issue to global AI usage, arguing that US-based infrastructure is increasingly servicing users outside the country. "It's amazing in a bad way how much electricity is projected for the AI folks to use, and a significant amount of electricity these AI centers are using now is serving ChatGPT users in places like India and China. That is going to be the important one."

"Why are Americans paying for AI in India? ChatGPT operating on US soil using American electricity servicing large users of ChatGPT in India and China. So that is another issue that is going to be dealt with."

Navarro, a hardline voice within the administration, has been a central figure in shaping Trump's trade policy and has repeatedly taken an aggressive stance against India. He has openly championed the 50% tariffs imposed on New Delhi and has accused India of maintaining some of the highest trade barriers in the world.

In September 2025, Navarro singled out India while defending US trade actions. "The problem is that India literally is the Maharaja of tariffs. It has the highest tariffs of any major country in the world and it's in denial about that."

The fresh focus on AI infrastructure comes as platforms such as OpenAI's ChatGPT see explosive global growth. Launched in November 2022, ChatGPT had 700 million active users as of September, according to data cited by Cloudflare.

In a LinkedIn post, Ruben Domínguez Ibar, founder of VC Corner, said ChatGPT recorded 5.8 billion visits in August 2025 - more than ten times Google's Gemini. The United States accounted for 883 million visits, or 15% of the total, followed by India with 544 million visits, or 9%, making it one of the fastest-growing markets.