Microsoft says it won’t drive up electricity cost near its data centers

Microsoft says it won’t drive up electricity cost near its data centers

By Daniel Howley
Publication Date: 2026-01-13 16:30:00

The proliferation of AI data centers across the country has raised concerns about increasing electricity prices, the impact on local water supplies, and whether the facilities actually benefit the communities in which they are built.

Now Microsoft (MSFT) says it’s taking steps to address those issues with what it refers to as its community-driven AI plan. President Brad Smith unveiled the effort in a speech in Washington, D.C., on Tuesday, laying out how the company will work to ensure it doesn’t negatively affect towns where data centers are constructed.

Microsoft stock fell more than 1.8% in early trade.

Backlash against data centers has been growing in parts of the country over concerns about the massive amounts of electricity and water needed to power and keep cool the thousands of chips running inside the gargantuan buildings.

To tackle the problem, Smith laid out five key areas he says Microsoft will work to deal with community fears: electricity, water,…