Microsoft First Tech Company to Address Data Center Power Costs Under Trump Plan

TLDR

• President Trump announced Microsoft will make changes this week to prevent Americans from paying higher utility bills due to AI data center power consumption
• US electricity prices increased 40% over five years, with data centers consuming 5.2% of America’s total power in 2025
• Trump stated his administration is working with major tech companies to ensure they cover their own power costs
• Data center electricity consumption could reach 11.7% of US power by 2030 according to McKinsey projections
• Microsoft previously withdrew plans for a Wisconsin data center after local opposition over electricity costs

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President Donald Trump announced Monday that Microsoft will implement changes to prevent American consumers from bearing the cost of power used by the company’s artificial intelligence data centers. The announcement comes as electricity prices have climbed across the country.

Trump made the statement on his Truth Social platform. He said his administration is working with major technology companies to secure commitments that protect consumers from rising utility bills.

Microsoft will be the first company to announce these changes this week. The tech giant did not immediately respond to requests for comment about the specific measures it plans to implement.

The move comes as Trump focuses on lowering consumer costs ahead of midterm elections. His administration has previously announced initiatives including a $1,776 payment for US soldiers and efforts to reduce mortgage rates through bond purchases.

Rising Power Demand from Tech Industry

US data centers consumed 224 terawatt hours of electricity in 2025, accounting for 5.2% of the country’s total power usage. This represents a 21% increase from the previous year according to Visual Capitalist data.

The average electricity price per kilowatt-hour in US cities has risen approximately 40% over the past five years. States with high concentrations of data centers have seen similar increases in utility costs.

McKinsey & Company projects that data center electricity consumption could exceed 600 terawatt hours by 2030. This would represent 11.7% of all American power consumption.

Tech companies have been rapidly expanding their data center operations to meet AI demands. Last week Meta announced partnerships with three nuclear power companies for a facility in Ohio.

Microsoft previously acknowledged concerns about its data center impact on local communities. Brad Smith, the company’s president and vice chair, addressed the issue at a September town hall in Wisconsin where Microsoft is building an AI data center.

The company told residents it was managing the situation to prevent increased electricity costs. Microsoft later withdrew plans for a second Wisconsin data center in Caledonia after facing opposition from local residents.

Cooling systems in data centers account for 30% to 40% of total facility energy use. Servers and IT equipment consume approximately 40% to 60% of facility power according to Network Installers.

The International Energy Agency estimates AI-focused data center electricity demand is growing at 30% annually. This compares to 9% growth for conventional server workloads.

Trump stated that data centers are essential to keeping America competitive in AI development. He emphasized that technology companies must pay their own way for power consumption.

The president said more announcements about tech company commitments will come in the following weeks. US utility companies charged consumers 6% more for electricity in August compared to the previous year.

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