Trump Says Microsoft Will Make Major Changes To Prevent AI Data Centers From Spiking Utility Costs
President Donald Trump has announced a breakthrough agreement with Microsoft to shield American households from soaring electricity costs driven by the surging growth of AI server farms.
Over on Truth Social, the President declared that tech giants must "pay their own way" rather than passing the massive energy bills of their data centers onto average citizens. Trump singled out Microsoft as the first partner in this initiative, claiming the company will implement "major changes beginning this week to ensure that Americans don't pick up the tab" for the AI power boom. The announcement comes as utility prices have climbed significantly across 13 states, with some regions like Maine seeing spikes as high as 36%.
Microsoft has followed the President's announcement by unveiling its "Community-First AI Infrastructure" initiative today. The five-point plan, championed by Microsoft Vice Chair and President Brad Smith, specifically pledges that the company will not seek property tax breaks and energy subsidies, and will work with utility commissions to ensure their presence does not drive up residential electricity rates. Smith's campaign marks a radical departure from the industry’s standard practice of negotiating deep discounts in exchange for the promise of local jobs.
Despite the big "America First" push to keep the U.S. ahead of countries like China in the AI race, some proponents of the movement have expressed concern that the unyielding support for tech infrastructure has come at the expense of local resources and affordable living. To address this, the administration has leaned into unconventional energy solutions, including a $1 billion federal loan to help reopen a reactor at the Three Mile Island nuclear plant, which is expected to power Microsoft's operations without draining the public grid.
Indeed, Trump's announcement/decree comes at a critical time for both the administration and the tech sector. With midterm elections approaching, the Trump administration is keen to tackle consumer inflation, while Microsoft is desperate to quell local opposition that recently stalled projects in states like Wisconsin. We can expect Microsoft being soon joined by other industry leaders like Meta, Google, and Amazon. After all, according to the President, his goal is to maintain the United States' position as the "HOTTEST Country in the World" in AI while decoupling technological progress from domestic inflation.
While some consumer advocates remain skeptical of how these off-grid costs will be audited, this message from the White House means that the era of subsidized energy for Big Tech could be over.
Main photo credit: Microsoft
