Microsoft Pledges Changes After Trump Demands Tech Companies Cover Data Center Power Bills

TLDR

• Microsoft agrees to implement changes preventing US consumers from covering AI data center electricity costs following Trump directive
• American electricity prices have jumped 40% in five years while data centers now use 5.2% of national power
• Trump’s administration working with multiple tech firms to secure similar commitments in coming weeks
• Data center power consumption projected to triple by 2030 reaching 11.7% of total US electricity usage
• Microsoft had previously canceled Wisconsin data center plans after community pushback over utility costs

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Microsoft will announce operational changes this week following President Donald Trump’s demand that technology companies pay for their own electricity consumption. The directive aims to shield American households from rising utility costs linked to artificial intelligence infrastructure.

Trump posted the announcement on Truth Social Monday evening. He stated his administration has been coordinating with Microsoft and will work with additional tech companies in coming weeks.

Microsoft has not yet released details about the specific changes it will implement. The company did not respond to media inquiries about the announcement.

Microsoft Corporation, MSFT

Data Center Energy Consumption Climbing Rapidly

Data centers across the United States consumed 224 terawatt hours of electricity in 2025. This figure represents 5.2% of the nation’s total power consumption and marks a 21% increase from 2024.

Average electricity costs per kilowatt-hour have risen 40% across American cities over the past five years. The St. Louis Federal Reserve tracks these price increases as part of consumer cost monitoring.

Industry projections show data center power demands continuing to accelerate. McKinsey & Company forecasts electricity consumption from these facilities could surpass 600 terawatt hours by 2030.

That projection would mean data centers account for 11.7% of all American electricity usage within six years. The International Energy Agency reports AI-focused data centers are driving this growth with 30% annual increases in power demand.

Traditional server workloads only grow at 9% per year by comparison. Cooling systems consume 30% to 40% of data center energy while servers use 40% to 60% of facility power.

Tech Companies Racing to Build AI Infrastructure

Major technology companies have accelerated data center construction to support artificial intelligence development. Meta announced partnerships with three nuclear power companies last week for an Ohio facility.

These companies have told investors they plan to increase capital spending as AI competition intensifies. The construction boom has raised concerns in communities hosting these facilities about local electricity costs.

Microsoft previously addressed these worries at a September town hall meeting in Wisconsin. Brad Smith, the company’s president and vice chair, told residents Microsoft was working to prevent their electricity bills from rising.

The company later withdrew plans for a data center in Caledonia, Wisconsin after facing local opposition. That facility would have been located 20 miles from another Microsoft data center in Mount Pleasant.

US utility companies charged consumers 6% more for electricity in August 2025 compared to the previous year. States with high concentrations of data centers saw similar price increases according to reports.

Trump’s directive comes as he seeks to address consumer costs ahead of midterm elections. His administration previously announced initiatives including mortgage rate reduction efforts and payments to military personnel.

The president said additional tech company announcements will follow in upcoming weeks. He praised Microsoft for being first to commit to covering its own power consumption costs.

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