Microsoft announced a 'community-first' approach to AI infrastructure on Tuesday, following Meta's similar AI infrastructure program announcement on Monday. The company had previously planned billions in AI capacity expansion last year.
Microsoft promised to be a 'good neighbor' in communities with its data centers. It stated it will 'pay its own way' to prevent local electricity bills from rising. The company plans to work with utility companies and state commissions to cover its full share of grid burden.
'We will work closely with utility companies that set electricity prices and state commissions that approve these prices,' Microsoft said. 'Our goal is straightforward: to ensure that the electricity cost of serving our data centers is not passed on to residential customers.'
The company also pledged to create jobs and minimize water usage in these communities. Data center water consumption has been contentious, with concerns about local water supplies and environmental impacts. Job creation numbers from such projects often face scrutiny.
Data center construction has become politically sensitive, with Data Center Watch reporting up to 142 activist groups across 24 states organizing against developments. Microsoft faced direct consequences in October, abandoning a Wisconsin data center after negative community feedback. In Michigan, locals protested a similar project.
On Tuesday, an Ohio newspaper op-ed criticized Microsoft for climate change contributions as the company develops data center campuses there. Concerns reached the White House, where AI infrastructure is a Trump administration priority. On Monday, President Trump promised on social media that Microsoft would make 'major changes' to prevent electricity bill increases for Americans.
Microsoft now confronts significant public opposition. Whether its commitments on jobs, environment, and electricity costs will change perceptions remains uncertain.