Microsoft responds to AI data center revolt, vowing to cover full power costs and reject local tax breaks

President Trump was right about Microsoft — but he only leaked part of the story.

Microsoft is changing its approach to building massive data centers for artificial intelligence, unveiling what it calls a “community first” initiative in response to growing opposition from people across the country facing higher electricity bills and dwindling water supplies.

The new plan, announced Tuesday morning in Washington, D.C, includes pledges to pay the company’s full power costs, reject local property tax breaks, replenish more water than it uses, train local workers, and invest in AI education and community programs.

“This sector worked one way in the past, and needs to work in some different ways going forward,” said Brad Smith, Microsoft president and vice chair, in an interview with GeekWire. He later described the shift…