Microsoft unveils “community-first AI infrastructure plan” after Trump calls out data centers for high electricity bills
Microsoft is committing to paying up for its data center electricity needs so American households won’t have to face higher costs.
This announcement comes after President Donald Trump posted on Monday evening that his administration was working with leading tech companies to ensure that US households don’t “pick up the tab” for their data center-driven energy demands, which have helped propel electricity bills higher.
Microsoft, he said, would be the first to unveil steps in this direction.
Here’s its plan, from a post attributed to Microsoft Vice Chair and President Brad Smith:
From a markets and economics standpoint, the first part is the most interesting. Smith said that Microsoft will ask utilities and public commissions to charge Microsoft enough to cover both data center installation and usage, as well as support two-tier pricing systems (like what’s being proposed in Wisconsin) that will see “Very Large Customers” like data centers face higher costs.
The hyperscalers are walking a fine line of trying to aggressively pursue a build-out of a technology that they believe will be transformative and offer profits for years to come while avoiding public and political backlash due to how resource-intensive these capital outlays and operations are.
“Especially when tech companies are so profitable, we believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI,” Smith said. “Instead, we believe the long-term success of AI infrastructure requires that tech companies pay their own way for the electricity costs they create.”
Microsoft’s 12-month forward expected profit margin is above 38%, per analysts polled by Bloomberg, its highest projection on record.
Microsoft, he said, would be the first to unveil steps in this direction.
Here’s its plan, from a post attributed to Microsoft Vice Chair and President Brad Smith:
From a markets and economics standpoint, the first part is the most interesting. Smith said that Microsoft will ask utilities and public commissions to charge Microsoft enough to cover both data center installation and usage, as well as support two-tier pricing systems (like what’s being proposed in Wisconsin) that will see “Very Large Customers” like data centers face higher costs.
The hyperscalers are walking a fine line of trying to aggressively pursue a build-out of a technology that they believe will be transformative and offer profits for years to come while avoiding public and political backlash due to how resource-intensive these capital outlays and operations are.
“Especially when tech companies are so profitable, we believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI,” Smith said. “Instead, we believe the long-term success of AI infrastructure requires that tech companies pay their own way for the electricity costs they create.”
Microsoft’s 12-month forward expected profit margin is above 38%, per analysts polled by Bloomberg, its highest projection on record.
