By Benj Edwards
Publication Date: 2026-01-13 20:05:00
Taking responsibility for power usage
In the Microsoft blog post, Smith acknowledged that residential electricity rates have recently risen in dozens of states, driven partly by inflation, supply chain constraints, and grid upgrades. He wrote that communities “value new jobs and property tax revenue, but not if they come with higher power bills or tighter water supplies.”
Microsoft says it will ask utilities and public commissions to set rates high enough to cover the full electricity costs for its data centers, including infrastructure additions. In Wisconsin, the company is supporting a new rate structure that would charge “Very Large Customers,” including data centers, the cost of the electricity required to serve them.
Smith wrote that while some have suggested the public should help pay for the added electricity needed for AI, Microsoft disagrees. He stated, “Especially when tech companies are so profitable, we believe that it’s both unfair…
