"Microsoft is promising to cover the costs of electricity needed to power its rapidly growing fleet of data centers in suburban and rural communities across the US. In a speech on Tuesday, Brad Smith, the president and vice chair of the Big Tech giant, said that going forward, Microsoft will "pay utility rates that are high enough to cover our electricity costs.""
"It is also one that state regulators have heard before as utilities, their data center customers, and consumer advocates argue over who will bear the cost of new infrastructure needed to serve AI's enormous appetite for power. But as the impact of data centers on electricity rates becomes an increasingly hot political flashpoint, Microsoft may have no other choice but to follow through, and the rest of Big Tech might not be far behind."
Microsoft will pay utility rates sufficient to cover electricity costs for its expanding fleet of data centers in suburban and rural US communities. AI-driven demand has fueled a historic surge in power needs and contributed to rising electric bills for average utility customers. State regulators, utilities, data center customers, and consumer advocates have debated who should bear the cost of new infrastructure required to serve AI's heavy electricity appetite. Political scrutiny has intensified, with President Trump endorsing the pledge and urging big technology companies to "pay their own way." Market analysts predict other Big Tech firms may adopt similar commitments.
Read at Business Insider
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