Microsoft struggles to quell outrage over its new AI data centers

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Microsoft is quietly walking back its diversity efforts

It seems the wave of campaigns against data centers is getting under the skin of big tech companies – and Microsoft is the latest giant to promise to address grassroots frustrations in the communities around its data centres.

The company made an announcement five point plan Today it is called “community-first AI infrastructure”. This includes paying more to try to prevent the data center’s energy demands from increasing other customers’ electricity bills, reducing the company’s water use, training workers and creating jobs and contributing to the local tax base in the locations it operates.

The issue has affected local elections, with some communities even pressuring developers to cancel or delay projects.

“We’re at a time when we need to listen and we need to address these concerns,” Microsoft vice president and president Brad Smith said in a livestream today.

Rising electricity rates have become one of the biggest flashpoints across the US, a trend driven in part by rising electricity demand from data centers, manufacturing and the electrification of homes, buildings and transportation. As of December, household electricity bills to rise nationally by 13 percent in 2025 Advocacy group Climate Power reports. And data center electricity demand is expected to double or triple, accounting for 12 percent of U.S. electricity consumption by 2028. According to the Department of Energy.

Microsoft claims it will “ask utilities and public commissions to set our rates high enough to cover the cost of electricity for our datacenters,” including the costs associated with building new infrastructure to meet growing demand. Smith says in interview that company will not accept electricity subsidy seattle times And geekwire.

The company is also promising more transparency about where it plans to build data centers and how much energy it is using. Data center developers and tech companies have faced criticism from local residents for making deals with utilities behind closed doors and for asking local officials to do so. sign nda This limits how much information the public can access. Senator Elizabeth Warren (D-MA) and other Democratic lawmakers sent Microsoft, Google, Amazon, Meta and major data center developers a letter In December demands were made that companies answer questions about their electricity use and local lobbying efforts.

Microsoft isn’t the only big tech company that seems to be on the defensive. Meta reiterated a similar pledge in December to restore water sources in places where it has data centres. Amazon launched a study It was said late last year that the company’s data centers generate more revenue for utilities than it costs to service those facilities.

At least 25 projects across the US have been canceled following local backlash, according to one heatmap pro Analysis Published yesterday. “The truth is that infrastructure construction only progresses when communities conclude that the benefits outweigh the costs,” Smith said.

President Donald Trump, who promised rapid data center growth with his AI Action Plan last year, has also joined in to address growing anger over rising electricity bills. one in true social post tomorrowHe says his team is “working” with Microsoft and other tech companies to ensure that US data centers don’t “pick up the tab” for power consumption.

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