Microsoft Corporation Agrees to Pay For Higher Electricity Consumption Due to Data Centers

Microsoft Corporation (NASDAQ:MSFT) is one of the 15 Best S&P 500 Stocks to Look For in 2026.

On January 12, Reuters reported that President Donald Trump said Microsoft Corporation (NASDAQ:MSFT) will make notable changes to ensure that Americans do not pay for higher electricity consumption due to data centers. In a social media post on Monday, Trump said:

I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks.

Copyright: ralwel / 123RF Stock Photo

In response, on January 13, Microsoft Corporation (NASDAQ:MSFT) revealed a “Community-First AI Infrastructure” policy. Microsoft ensured that the community would not bear the full cost of electricity consumption and grid expansion associated with its data centers. Microsoft’s Vice Chair and President, Brad Smith, said:

We believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI.

The International Energy Agency (IEA) estimates the U.S. datacenter electricity demand to more than triple by 2035. This means that the demand will grow from 200 terawatt-hours to 640 terawatt-hours per year. The rising demand for data centers, along with the rapid electrification of manufacturing and other sectors of the economy, will drive up electricity costs.

Microsoft has pledged to cover its data center electricity costs, along with limited use of water. The company remains focused on its AI infrastructure and is committed to working with local utilities to plan and estimate its projected power requirements in advance.

Microsoft Corporation (NASDAQ:MSFT) is a leading provider of AI software and services. The company develops and supports software, services, devices, and solutions globally.

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Disclosure: None. This article is originally published at Insider Monkey.