Microsoft Corporation (NASDAQ:MSFT) has pledged to adopt a “community-first” approach to its AI infrastructure expansion, ensuring that local electricity bills do not surge due to its operations.
The company unveiled its plans on Tuesday, stating that it will take the necessary measures to be a responsible neighbor in the communities where it builds, owns, and operates its data centers. The company plans to collaborate with local utilities to ensure its payments fully reflect its share of the strain on the local grid, helping avoid higher energy costs for local customers.
Microsoft also committed to creating jobs in the communities where it establishes its data centers and to minimizing the centers’ water usage, a significant issue in many areas.
Big Tech Faces Heat On Data Centers
This move by Microsoft comes amid increasing scrutiny of big tech companies’ environmental and social impact. Earlier in the week, President Donald Trump called on major U.S. tech companies, particularly Microsoft, to bear their data center power bills to prevent Americans from paying higher electricity bills. Trump emphasized that the U.S. is a leader in AI and that data centers are crucial to the AI boom, but insisted that tech companies must “pay their own way.”
Notably, this announcement also comes on the heels of a contentious $1 billion data center project in a Michigan township, where Microsoft’s cloud infrastructure team was revealed as the interested party. The disclosure followed local pushback and speculation, with the community expressing a desire for more information about the proposal.
In February, Microsoft had reiterated its plan to invest $80 billion in AI in 2025, while noting it may “adjust its infrastructure in certain areas.”
Microsoft holds a momentum rating of 34.07% and a quality rating of 82.02%, according to Benzinga’s Proprietary Edge Rankings. Click here to see how it compares to other leading tech companies.
Price Action: Over the past year, Microsoft stock climbed 13.23%, as per data from Benzinga Pro. On Tuesday, it fell 1.36% to close at $470.67.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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