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Microsoft Pledges to Cover Data‑Center Power Costs, Unveils Community‑First Plan

The pledge answers mounting political and community pressure over AI data centers' strain on grids that threatens higher local bills.

Overview

  • Microsoft will ask utilities and state commissions to set data‑center rates high enough to cover its electricity use and required grid upgrades, with early coordination on capacity.
  • The company committed to minimize water use, replenish more than it withdraws, and publish region‑level water‑use and replenishment data for its U.S. data centers.
  • Microsoft said it will create local jobs, pay its full share of property taxes without seeking abatements, and fund AI training for schools, libraries and small businesses.
  • President Trump said Microsoft is “first up” in a broader push to prevent consumers from paying higher utility bills, with additional corporate commitments expected in the coming weeks.
  • The move comes as data‑center demand accelerates and some regions report sharp bill increases, with states considering new rate structures and Microsoft citing Wisconsin arrangements designed to shield residential ratepayers.