Microsoft Unveils Five-Point ‘Community-First AI’ Infrastructure Plan That Includes Capping AI Data Center Costs

Microsoft on Tuesday unveiled a five-point plan that included absorbing power costs, and reducing water usage for its data centers in the U.S.

• Microsoft has committed to paying for electricity costs for its datacenters so that they don’t increase consumer electricity prices. 
• The company said it would work towards a 40% improvement in datacenter water-use intensity by 2030.
• Other points included were the company’s commitment to creating more jobs, adding to the tax base for local infrastructure development, and investing in AI training and nonprofits.

Microsoft Corp. (MSFT) on Tuesday announced a five-point plan detailing its artificial intelligence infrastructure goals, including absorbing costs and curtailing water usage for its data centers in the U.S.

The company has committed to paying for electricity costs for its data centers so that they don’t increase consumer electricity prices. Microsoft has also committed to minimizing its water use and to replenishing the water that it uses.

The announcement comes a day after U.S. President Donald Trump said in a social media post that his administration is working with technology giants, including Microsoft, to lower high power costs of running data centers.

Apart from this, the company also said it would create more jobs, add to the tax base for local infrastructure development, and strengthen local communities by investing in AI training and nonprofits.

Microsoft’s Commitment

Amid rising electricity consumption for AI usage, Microsoft’s power usage plan outlined four actions—paying utility rates that fully reflect datacenter costs so households aren’t burdened; working early and transparently with utilities to expand generation, transmission, and substations; improving datacenter efficiency through innovation and AI; and advocating for policies that speed up permitting, modernize the grid, and create fair rates for large power users.

“Especially when tech companies are so profitable, we believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI,” said Microsoft Vice Chair and President Brad Smith in a statement. “Instead, we believe the long-term success of AI infrastructure requires that tech companies pay their own way for the electricity costs they create,” he added.

The tech giant also said that its goal is to reduce water use for its data centers and invest in infrastructure that would help replenish more water than it uses. The company said it would work towards a 40% improvement in datacenter water-use intensity by 2030 using optimization strategies like deploying closed-loop cooling systems. Microsoft also said it plans to be water-positive by restoring more water to local watersheds than its data centers consume.

Trump’s Comments

President Trump said on Monday on Truth Social, “I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks.

The rapid growth of data centers to meet AI demand has sharply raised electricity demand and in turn, prices, in many parts of the U.S. According to the International Energy Agency (IEA), data center electricity demand in the U.S. will more than triple by 2035, growing from 200 terawatt-hours to 640 terawatt-hours per year.

A report from Bloomberg in Sept. 2025 showed that wholesale electricity costs went up by as much as 267% in areas near data centers compared to five years ago.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MSFT shares rose to ‘neutral’ from ‘bearish’ territory over 24 hours as message volume stayed in the ‘high’ level.

One user said that Trump’s comment made them bullish on MSFT as it indicated the company may have already reached an agreement with the administration for an energy deal.

Shares of MSFT rose over 12% in the past year.

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