Microsoft Data Centers: No Cost Increase to Consumers | Response to Criticism

As public opposition to artificial intelligence (AI) data centers spread as they were identified as the main culprit in the increase in electricity rates in the United States, Microsoft (MS) emphasized that it would operate its data centers in a community-friendly manner.

Microsoft President Brad Smith said on the 13th local time, “We will ask the power companies that set electricity rates and the public committees that approve them to set rates high enough to cover the cost of electricity consumed by data centers.”

President Smith explained that Wisconsin has already established a new rate system that charges high electricity costs to very large power consumers like them, and that he will use this as an example and push for other states to implement similar policies.

He said that he will work closely with local power companies to add power and infrastructure in advance when building a data center, and will also promote ways to reduce energy use by using AI in the data center design process.

Along with power, we also promised improvements in water use, which has been identified as a negative environmental factor in data centers.

He announced that he would minimize water use to cool overheated data centers and replenish local communities with more water than is withdrawn.

He also emphasized that he would create jobs for residents, not require local tax cuts, and strengthen AI education and support for non-profit organizations.

The reason Microsoft made this announcement is because the backlash from residents is growing as electricity rates continue to rise in the U.S. due to data centers, the so-called ‘electricity-eating hippos’.

This increase in electricity rates could be a burden to the ruling Republican Party in the midterm elections scheduled for the end of this year.

In Virginia, a state with a high concentration of data centers in the U.S., Democratic candidate Abigail Spanberger won the gubernatorial election in November last year by raising the issue of the surge in demand for electricity from data centers leading to increases in household electricity rates.

The day before, President Donald Trump announced on the social networking service (SNS) Truth Social that he would implement measures to prevent Microsoft from bearing the burden of Americans’ power consumption, and said, “I thank and congratulate Microsoft (for its decision),” seeking to turn this situation around.

President Trump said, “We are the hottest country in the world and the No. 1 country in AI,” and emphasized, “Data centers are key to this boom and to protecting the freedom and safety of Americans, but the giant technology companies that build them must pay their share.”

President Trump said, “There will be many announcements in the coming weeks,” suggesting that other technology companies may also join this movement.

Earlier, on the 9th, Meta also announced a 6.6GW (gigawatt) power supply contract with three nuclear power companies and emphasized, “We will pay the full cost of energy used in the data center so that consumers do not have to bear such costs.”

Reporter Lee Cheol-ho (manjeok@kbs.co.kr)