President Trump says tech giants must pay their way when it comes to delivering increased power needed for datacenters, rather than the burden falling on US citizens, and it seems Microsoft is on board with that.
Trump issued his latest edict via his Truth Social media platform, declaring: "I never want Americans to pay higher Electricity bills because of Data Centers."
The Trump administration is working with major US technology companies to secure their commitment, he added, saying: "First up is Microsoft, who my team has been working with, and which will make major changes beginning this week to ensure that Americans don't 'pick up the tab' for their POWER consumption, in the form of paying higher Utility bills."
This is a new concern for the President, who last year assured the tech oligarchy during a convivial dinner hosted at the White House that he would ensure they got as much energy as they needed to retain US leadership in the AI arms race.
Microsoft has responded to the Presidential decree with what it is calling "Community-First AI Infrastructure." This might sound like a contradiction in terms, but Microsoft insists it wants "to be a good neighbor in the communities where we build, own, and operate our datacenters."
In a blog post, vice chair and president Brad Smith says tech companies have a unique opportunity to deliver the advances AI is expected to bring, plus a responsibility to address new challenges it creates.
In June 2025, Val Walsh, Microsoft's VP for Cloud Operations & Innovation, complained at the Datacloud Global Congress event in France: "we have communities that don't want us there," and criticized the "lack of alignment from the general public" as to why datacenters are necessary.
The Community-First AI Infrastructure Initiative provides a framework to address community-related challenges, Smith explained today, based on five commitments from Microsoft:
On paying its way, Smith said Microsoft will ask utility companies to set its electricity rates high enough to cover the electricity costs for its datacenters, including the costs of expanding the electricity infrastructure.
However, in a telling aside, he commented: "Some have suggested that AI will be so beneficial that the public should help pay for the added electricity the country needs for it." Of course, others have also suggested that AI is a bubble waiting to burst, and that many are likely to be impacted by the fallout once it does.
On the other promises, Microsoft reiterates that it is committed to reducing the amount of water its datacenters use, claiming this will equate to "a 40 percent improvement in datacenter water use intensity by 2030." But as we reported back in 2023, the company's water consumption actually surged 34 percent to 6.4 million cubic meters the previous year.
Microsoft also pledges to create jobs, although opponents of datacenters are quick to point out that while these facilities may employ thousands during construction, once up and running, the number of permanent positions may be as few as 50.
However, major infrastructure expansion is always difficult, Smith concluded. "It's expensive. It inevitably raises questions, concerns, and even controversies."
Private companies can help, he added, by "stepping up and acting in a responsible way. We cannot surmount inevitable community challenges by ourselves. But we can make everything easier by embracing a long-term vision. By recognizing our responsibility. By playing a constructive role. And by supporting the entire community." ®
Source: The register