No. of Recommendations: 1
" The boom in AI data center building has prompted a backlash over the rising cost of electricity to power the facilities, with government officials including President Trump calling on tech giants to pay their share of the tab. Microsoft announced just such a plan in a blog post by its President Brad Smith.
Microsoft pledged that any costs to power its AI data centers wouldn’t be passed on to the communities where they are located, and it won’t ask for breaks from local property taxes for data center build outs. It’s asking utility companies to charge large customers like itself higher rates.
On Monday, Trump posted on social media that the administration was working with big tech on this plan, as it pursues ways to address the affordability issues facing many households. Virginia Governor-elect Abigail Spanberger also has said that tech companies’ data centers must pay their own way and their fair share.
Wedbush Securities analyst Dan Ives said Microsoft is committed to paying utility rates high enough to cover electricity costs, while working with utilities to increase electricity capacity and minimize water use to ensure local water sources aren’t depleted. He expects other Big Tech companies to follow suit.
The Energy Information Administration expects electricity use to grow 1% this year and 3% in 2027, marking four years of power demand increases and the strongest four-year growth period since 2000, largely because of demand from large computing centers.
What’s Next: New York Gov. Kathy Hochul’s Energize NY Development initiative will require large power users that don’t deliver significant job growth or other benefits to the state to generate their own electricity or pay more for energy from the grid.
—Tae Kim and Janet H. Cho "
