Microsoft says its data centers won't burden the locals

The big picture: Microsoft's five-point plan is designed to address the most common local concerns around data centers. As part of the plan, Microsoft says it will:

1. Pay its fair share of electricity bills, asking local authorities to set its rates high enough to cover the costs of both adding infrastructure and the ongoing utility operations.
2. Minimize its water use and replenish more water than its data centers use.
3. Create jobs that go to the community, including by training residents in the skills needed for the ongoing operation roles at the data centers.
4. Add to the local property tax base by not asking for or accepting tax reductions, ensuring that money goes to needed infrastructure including schools and health care.
5. Strengthen the community by investing in local AI training and nonprofits.

Driving the news: On Monday President Trump hinted at Microsoft's announcement in a post on Truth Social while stressing the importance of data centers in the race to be the global leader in AI.

• "I never want Americans to pay higher Electricity bills because of Data Centers," Trump wrote.
• Trump says his team has been working with Microsoft, insisting that "the big Technology Companies who build [data centers] must 'pay their own way.'"

What they're saying: "We're not asking taxpayers to subsidize our electricity costs," Microsoft president Brad Smith said in an interview with Axios. "We're definitely not asking consumers to pay through their electricity bills for our electricity usage, and I just think that's a paramount responsibility we need to embrace."

• Although the scale of the datacenter boom may be unprecedented, Smith said that other innovations have presented similar societal challenges.
• "Every technology that has required a major infrastructure expansion has involved precisely the kinds of questions that we're facing here," he said. "Private companies cannot solve all the issues by themselves, but they can make it easier when they take a high road."

Between the lines: Local communities have been growing more resistant to data center projects, with some politicians calling for a moratorium on new construction until guidelines can be established for responsible building.

• New York Gov. Kathy Hochul (D) on Monday demanded that tech companies that want to build data centers in her state ensure they aren't driving up utility rates. "We must grow responsibly, ensuring affordability comes first and those profiting from data growth pay their fair share," Hochul said.

• Other Democrats have also called for tighter rules to govern new facilities. Electricity costs have been a particular sticking point, with rates rising across the country.

The promise of jobs — especially after the construction phase is over — is also a big open question for these communities.

• For his part, Smith noted that the construction phase often extends beyond the initial build-out. "We can end up with 10 or 15 years of a few thousand people working on these sites as the sites are expanded over time," he said.
• And while the jobs operating a data center are fewer, he said it can still be a significant source of local employment, "especially when we're talking about jobs in less populous counties." The key, he said, is ensuring that as many jobs as possible go to local residents, and that requires the kind of training that Microsoft is committing to support.

Between the lines: Microsoft encountered the opposition firsthand when residents of Caledonia, Wisconsin, rejected the company's plans for a data center there.

• "It was dead on arrival because of local opposition," Smith said.