Microsoft said it will seek to pay higher electricity costs in regions where it is building data centres, aiming to prevent rising power bills for local residents amid the rapid expansion of AI infrastructure across the United States.
The company said it plans to cover not only the electricity used by its data centres, but also the costs of upgrading and expanding local power grids, so these expenses are not passed on to other utility customers.
“I think the bare minimum, as we look to the future, is to give these communities around the country the confidence that when a data centre comes, its presence will not raise their electricity prices,” said Microsoft president Brad Smith, speaking at an event in Washington, DC.
The move follows growing concern in communities hosting data centres, where electricity costs have risen sharply in recent years. A Bloomberg News analysis last year found power prices near data centres increased by as much as 267% over five years.
Microsoft also said it will invest in local infrastructure such as water systems, schools and libraries, fund job and AI skills training, and pay for water “replenishment” where its facilities draw on local supplies. Smith added the company will not seek property tax reductions in areas where it builds data centres.
The announcement came a day after US President Donald Trump said his administration was working with major technology companies to ensure Americans do not face higher utility bills as a result of rising power demand from AI.
Despite local opposition to data centre developments, Smith said Microsoft believes such facilities can support broader economic growth, provided communities are protected from higher costs.
