Microsoft Makes New Data-Center Pledges After Local Backlash

Dow Jones
Yesterday

Microsoft released a new plan focused on benefiting communities that host its massive data centers for training AI models, the latest attempt by the tech sector to win public support for unpopular infrastructure that many voters fear will increase electricity prices.

The plan confirms a social-media post from President Trump Monday.

Microsoft has committed to paying high-enough electricity rates to cover the electricity costs of its data center so they aren't passed on to consumers, replenishing more water than it withdraws locally and paying the full property tax rate. Many of the promises build on current practices on certain sites that the company is now applying to its entire portfolio.

"The industry operated in a certain manner in the first half of the decade that is not an appropriate path for the second half of the decade," Microsoft President and Vice Chair Brad Smith said in an interview.

The company and peers like Meta Platforms, Amazon.com and Google have taken similar measures in response to pushback from consumers and political pressure. Many tech executives fear the backlash will delay construction of critical infrastructure that sets the sector back against competitors in China and other countries.

The data-center pushback is just one component of the messy politics of AI. Many consumers also worry about the technology fueling job losses and hurting children online. The fears have complicated Trump's embrace of the technology and prompted the AI industry to become more active politically ahead of the midterm elections.

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