U.S. President Donald Trump said that he does not want Americans to pay higher electricity bills because of data centers, adding that Microsoft (MSFT) will make changes beginning this week to ensure that people do not “pick up the tab” for their power consumption.
“I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks. First up is Microsoft, who my team has been working with, and which will make major changes beginning this week to ensure that Americans don’t “pick up the tab” for their POWER consumption, in the form of paying higher Utility bills,” said Trump in a post on social media platform Truth Social.
On Tuesday, Microsoft’s President Brad Smith unveiled the company’s initiative called Community-First AI Infrastructure.
The company said the initiative provides five commitments, each a clear promise to the communities where it builds, owns, and operates Microsoft data centers.
Microsoft’s commitments are: We’ll pay our way to ensure our datacenters don’t increase your electricity prices; We’ll minimize our water use and replenish more of your water than we use; We’ll create jobs for your residents; We’ll add to the tax base for your local hospitals, schools, parks, and libraries; We’ll strengthen your community by investing in local AI training and nonprofits.
Regarding electricity, Microsoft said it will take four steps.
The company will ask utilities and public commissions to set its rates high enough to cover the electricity costs for its data centers; Microsoft will collaborate early and transparently with local utilities to add electricity and the supporting infrastructure to the grid when needed for its data centers; It will pursue innovation to make our data centers more efficient; and the company will advocate for the state and national public policies needed to support its neighboring communities with affordable, reliable, and sustainable power.
Microsoft noted that it is choosing the beginning of 2026 in Washington, DC, to launch this effort in the U.S. The company added that its goal is to move quickly, partner with local communities, and bring these commitments to life in the first half of this year.
Microsoft’s President Brad Smith is meeting with federal lawmakers on Tuesday to push forward an approach that calls for the industry, not taxpayers, to pay the full costs of the large network of computing warehouses, The Associated Press reported.
“Local communities naturally want to see new jobs but not at the expense of higher electricity prices or the diversion of their water,” said Smith said in an interview with The AP.
“Data Centers are key to that boom, and keeping Americans FREE and SECURE but, the big Technology Companies who build them must “pay their own way,” said Trump on Tuesday.
U.S. tech giants have spent billions of dollars in 2025 and plan to spend even more this year to build data center infrastructure that is crucial for AI services. However, the move to set up large data centers has also led to an increasing demand for power required to run these data centers.
Last month, a trio of U.S. senators, Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.) and Richard Blumenthal (D-Conn.), sent a letter to Alphabet’s (GOOG) (GOOGL) Google, Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), CoreWeave (CRWV), Digital Realty (DLR) and Equinix (EQIX), voicing concerns and demanding answers regarding the rapid development of data centers for AI and its relationship to higher electricity costs.
Earlier this month, Microsoft proposed building a new data center on a 237-acre lot in the Township of Lowell, Mich., as part of its commitment to spend over $80B in fiscal 2026 to support AI and cloud demand.
In September 2025, Microsoft and Constellation Energy (CEG) signed a deal that will restart part of the storied Three Mile Island nuclear power plant. Microsoft (MSFT) already buys nuclear energy from Constellation (CEG) when wind and solar power aren’t available for a data center in Virginia. The tech giant in 2023 signed a deal with Helion Energy to buy fusion energy when it comes online.