White House trade adviser Peter Navarro has sparked fresh controversy after questioning why American resources are being used to support artificial intelligence services accessed abroad, particularly in India.
Speaking to former White House chief strategist Steve Bannon on Real America’s Voice, Navarro argued that US-based AI platforms are consuming domestic electricity while catering to global users.
“Why are Americans paying for AI in India? ChatGPT operates on US soil and uses American electricity, servicing large users of ChatGPT in India and China and elsewhere around the world,” he said.
Navarro added that the Trump administration is examining the rising power costs linked to the rapid growth of AI data centres and hinted at policy action.
“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.
“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,” he added.
His remarks come at a time of heightened trade tensions between Washington and New Delhi, following the Trump administration’s decision to impose steep tariffs on Indian goods over continued purchases of Russian oil and stalled trade negotiations.
Navarro, known for his hardline stance on India, has repeatedly criticised New Delhi’s trade policies in the past, accusing the country of fuelling Russia’s war in Ukraine and maintaining excessive tariff barriers. The Ministry of External Affairs has earlier dismissed his comments as “unacceptable” and “ill-informed.”
The renewed focus on AI infrastructure also reflects the global expansion of platforms such as ChatGPT, whose user base has surged across multiple markets, including India and China, increasing pressure on US-based energy and data systems.
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