Microsoft announced a comprehensive plan ensuring its AI data center expansion won’t increase electricity bills for local residents, addressing growing public concerns about infrastructure costs.

The “Community-First AI Infrastructure” initiative includes five core commitments: covering full electricity costs including grid upgrades, replenishing more water than facilities consume, creating local jobs, paying complete property taxes without seeking breaks, and investing in AI education programs.

Brad Smith, Microsoft’s president and vice chair, stated the company will work with utilities and regulators to establish rate structures preventing infrastructure costs from being passed to households. He described community support as essential for successful infrastructure projects.

The announcement follows mounting backlash against data center development nationwide. Some areas near data centers saw electricity costs jump up to 267% compared to five years earlier. Over $64 billion in data center projects were canceled in recent years due to community opposition over utility bills and water scarcity.

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Microsoft’s water commitment includes reducing consumption intensity by 40% by 2030 while replenishing more than facilities use. The company cited over $25 million in water infrastructure improvements near its Leesburg, Virginia campus as a precedent.

The initiative also includes workforce development through partnerships with trade unions, community colleges, and vocational programs, plus AI literacy programs in local libraries and schools.

President Trump praised the announcement, highlighting Microsoft’s leadership in ensuring Americans don’t bear AI power consumption costs. The International Energy Agency projects U.S. data center electricity consumption could triple by 2035. Microsoft plans to begin implementation in early 2026.

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