Microsoft pledges to cover data center power costs as community pushback grows

Microsoft is rolling out a new initiative for AI data centers after facing mounting opposition from communities across the US. The company says it will fully cover the power costs of its data centers, ensuring residents won't see higher electricity bills as a result. The announcement comes as data center regions like Virginia, Illinois, and Ohio have seen electricity prices climb 12-16 percent faster than the national average.

Beyond power costs, Microsoft is making several other commitments: the company will stop requesting local tax breaks, cut water consumption by 40 percent by 2030, and replenish more water than it uses. Microsoft President Brad Smith told GeekWire that the industry used to operate differently and now needs to change its approach. Trump previewed the announcement on Truth Social before Microsoft made it official.

As part of the initiative, Microsoft also plans to train local workers and invest in AI education programs in affected communities.