Microsoft Has a Plan to Address One of the Biggest Complaints About AI

As it embarks on a years-long project to build 100 data centers across the U.S. to power its AI boom, Microsoft has announced the steps it will take to lower its impact on the communities nearby. The move comes as electricity rates have spiked across the nation, fueled in part by the massive power demands from AI data centers that are popping up across the country. President Donald Trump paved the way for the announcement, saying via Truth Social on January 12 that his administration was working with leading technology companies to “ensure that Americans don’t ‘pick up the tab’ for their POWER consumption” by paying more in utilities. “We are the ‘HOTTEST’ Country in the World, and Number One in AI,” he wrote. “Data Centers are key to that boom, and keeping Americans FREE and SECURE but, the big Technology Companies who build them must ‘pay their own way.’” Community Opposition Bard Smith, Microsoft vice chair and president, acknowledged the need to address concerns about data centers. “When I visit communities around the country, people have questions—pointed questions…They are the type of questions that we need to heed,” Smith said. “They look at this technology and ask, ‘What will it mean for the jobs of the future? What will it mean for the adults of today? What will it mean for their children?’” In October Microsoft cancelled construction plans for a data center in Wisconsin because of pushback from the surrounding community, according to Wired. Microsoft’s Promise In an effort to increase transparency and minimize the negative impact its data centers have on the public, Microsoft addressed five core issues it plans to focus on going forward. Per Microsoft’s statement, the electricity needed for data centers will more than triple by 2035 to 640 terawatt-hours per year. The U.S. is currently leading development in AI, but that growth depends on a sufficient supply of energy. So where will that electricity come from? Microsoft said in a statement it believes “it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI,” instead suggesting “tech companies pay their own way for the electricity costs they create.” The company plans to cover its costs through a series of steps, including negotiating higher rates with utility companies and public commissions that will pay for the electricity for the datacenters. It will also work to increase the efficiency of its data centers and advocate for policies that will ensure communities have affordable and reliable power. Microsoft also said it would: Minimize its water use and invest in water replenishment projects Create construction and operational jobs in local communities and train residents with the skills required to fill them Increase local tax revenue that will help fund hospitals, schools, parks, and libraries Help bring AI training and nonprofits to local communities to ensure residents benefit from the data centers. BY AVA LEVINSON