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Microsoft Pledges to Cover Data-Center Power Costs as White House Presses Tech on Electric Bills

Energy experts warn utility cost-recovery rules may still leave households exposed without contracts that truly isolate data-center expenses.

Overview

  • President Donald Trump said his administration is securing commitments from major tech firms to prevent higher residential electricity bills, naming Microsoft as the first partner and signaling more agreements soon.
  • Microsoft unveiled a Community-First AI Infrastructure plan that asks utilities and state commissions to set dedicated, higher rates to cover its data centers’ electricity use and related grid upgrades.
  • The five-point pledge also includes replenishing more water than facilities consume, creating local jobs and training, paying full property taxes without abatements, and funding AI skills programs for schools and communities.
  • Microsoft cited arrangements in places like Wisconsin and Wyoming as models for bespoke rate structures designed to shield existing customers, and it plans to publish water-use data by U.S. data-center region.
  • Analysts note uncertainty about bill impacts because utilities typically recover infrastructure costs through rates, even as federal and industry forecasts project steep growth in data-center power demand and lawmakers continue investigations into cost allocation.