Microsoft swears off local subsidies as worry over AI power crunch looms

Microsoft swears off local subsidies as worry over AI power crunch looms

By @byalexhalverson
Publication Date: 2026-01-13 13:30:00

Who’s going to pay for the artificial intelligence boom?

As tech titans invest billions into data centers and high-tech computer chips to fuel their AI ambitions, concerns are building over energy costs, especially in communities where data centers pop up.

Microsoft says it will pay its own way.

The Redmond-based tech giant on Tuesday unveiled a five-point plan it expects to abide by as it expands its AI infrastructure. Amid backlash against AI expansion, Microsoft is trying to establish itself as one of the responsible tech giants, a departure from its attitude during the dawn of the internet.

The plan is “a recognition that as a nation we’ve been here before,” Microsoft President Brad Smith said in an interview with The Seattle Times. “When you look at the construction of railroads, power plants and airports across the country, we’ve always been challenged with how to keep our infrastructure up to do date. This is the right thing for a company like us to do.”

Smith…