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Microsoft vows to cover full power costs for energy-hungry AI data centers

Company responds to community concerns over electricity bills and water use.

Microsoft vows to cover full power costs for energy-hungry AI data centers

TL;DR

  • Microsoft's "Community-First AI Infrastructure" initiative will cover full electricity costs for its data centers.
  • The company will refuse local property tax reductions.
  • Concerns have risen over data centers increasing residential electricity rates and straining water supplies.
  • Global data center electricity demand is projected to more than double by 2030.
  • Microsoft commits to minimizing water use and replenishing more than it withdraws.
  • The company will create local jobs and pay full property taxes.
  • Microsoft will invest in AI training programs for data center communities.
  • Microsoft aims for a 40 percent improvement in water-use intensity by 2030.
  • A new AI data center design using a closed-loop cooling system dramatically cuts water usage.
  • Microsoft plans to implement these commitments in the first half of 2026.