Microsoft to Pay Higher Electricity Costs to Cover Data Center Operations

Microsoft agreed to pay higher utility rates to cover electricity costs required to operate its data centers in the US. The decision follows a new initiative dedicated to ensuring it is helping the communities where it runs AI infrastructure.

In a five-point Community-First AI Infrastructure initiative, Microsoft stated it would pay its way to ensure data centers don’t increase user electricity prices. It explained it would pay rates high enough to cover electricity costs, as well as collaborate with utilities on plans to add the power it requires and ensure its data centres run efficiently. Furthermore, Microsoft plans to advocate for public policies needed for affordable, reliable, and sustainable power.

The pledge around electricity costs comes after US President Donald Trump wrote on his social media platform, Truth Social, that the government had been in talks with Microsoft to ensure consumers don’t pick up the tab for enormous data centers. He added that big technology companies must pay their way for data centres, which are key to powering AI.

Also included in Microsoft’s plan are pledges to minimize the amount of water data centres use, create more jobs across communities through partnerships with local construction companies to train workers, add to taxes which fund local hospitals, schools, parks, and libraries, and invest in local AI training and non-profits. Brad Smith, vice chair and president of Microsoft, said the plan reflects their sense of civic responsibility as well as a broad and long-term view of what it will take to run a successful AI infrastructure business.