- Trump says Microsoft will make changes to prevent higher consumer utility bills linked to data centre energy use.
- The announcement reflects broader political concern about the cost of AI infrastructure and its impact on household expenses.
What happened: Trump targets data centre power costs
US President Donald Trump announced that Microsoft will implement “major changes” this week aimed at preventing American consumers from paying more for electricity because of the high energy consumption associated with large data centres used in artificial intelligence development.
Trump made the remarks in a social media post, stating that he does not want Americans to face higher utility bills due to data centre power demands, and that his administration is working with major American technology companies to secure commitments on this issue.
Data centres — vast facilities that house computing equipment for cloud services and AI workloads — are highly energy-intensive. Critics have argued that as demand for AI grows, so too does the strain on local electricity grids and, potentially, consumer bills in areas where costs are passed on.
Trump specifically mentioned Microsoft as the first company his team is working with on the initiative, with the suggestion that other announcements involving additional firms could follow.
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Why it’s important
The announcement highlights the growing policy tension between encouraging technological innovation — particularly in AI and cloud computing — and mitigating its broader economic effects on households. AI infrastructure, including data centre build-outs, is central to maintaining US competitiveness, especially under initiatives like the government’s broader AI action planning and infrastructure buildup.
However, data centre electricity use has already drawn scrutiny from policymakers. In the past year, several US lawmakers have raised concerns that energy costs for large facilities could be indirectly absorbed by local residents and businesses when utilities increase rates to cover grid upgrades that benefit these facilities.
By securing a pledge from Microsoft to address these costs, the administration aims to reassure voters ahead of upcoming political contests that tech expansion will not translate into higher living costs. It also underscores the broader debate about how to fairly allocate the economic burdens of AI infrastructure — whether through direct industry funding, regulatory frameworks, or incentives for off-grid energy solutions.
