Microsoft has announced it will cover the full electricity costs for its energy-intensive AI data centers, responding to growing concerns from local communities about rising power bills and environmental impact. The move comes as the company accelerates its investment in AI infrastructure, with data centers consuming vast amounts of energy to power large-scale models and training workloads. The commitment applies to all new and existing AI-focused data centers operated by Microsoft, including those in the U.S., Europe, and Asia. The company said the decision is part of a broader effort to build trust with communities near its facilities and ensure that the benefits of AI development are not offset by local energy burdens. In a statement, Microsoft emphasized that while AI is driving innovation across industries, the energy demands of these systems require responsible management. “We recognize that the scale of AI deployment brings new challenges, and we are taking proactive steps to address them,” the company said. “By covering the full power costs, we aim to support local grids, prevent rate hikes for residents, and demonstrate our long-term commitment to sustainable growth.” The announcement also highlights Microsoft’s ongoing efforts to power its data centers with renewable energy. The company has pledged to be carbon negative by 2030 and to remove all historical emissions by 2050. It is investing in wind, solar, and other clean energy projects, and has signed long-term agreements to source renewable power for its operations. In addition to electricity, Microsoft is addressing concerns about water use, a key issue in data center cooling. The company is implementing advanced water recycling systems and using air-cooling technologies in new facilities to reduce consumption. The move follows public pushback in several regions, including the U.S. Pacific Northwest and parts of Europe, where local governments and residents have raised alarms about the strain AI infrastructure places on regional energy grids and natural resources. Some communities have reported increased electricity rates and concerns over long-term environmental sustainability. Microsoft’s decision to absorb power costs is seen as a strategic step to ease tensions and strengthen partnerships with local governments and utilities. It also positions the company as a leader in responsible AI infrastructure development, even as competition intensifies among tech giants to scale up AI capabilities. The company said it will continue to work with energy providers, regulators, and community groups to ensure that AI growth is both rapid and sustainable.