Microsoft is committing to cover the full cost of electricity for its expanding network of data centers across the United States, a move that comes amid growing concerns over rising power demand driven by the AI boom. In a speech on Tuesday, Brad Smith, Microsoft’s president and vice chair, announced the company will pay utility rates high enough to fully offset its electricity expenses. The pledge arrives at a critical moment as AI-driven data center growth strains regional power grids and pushes up electricity bills for average consumers. As demand surges, utilities, regulators, and consumer advocates are locked in debate over who should bear the cost of new infrastructure needed to support this expansion. Microsoft’s four-part strategy includes pushing utilities and regulators to set rates that reflect the true cost of serving data centers, partnering with utilities to fund new infrastructure, improving data center efficiency, and advocating for affordable, reliable power at both state and federal levels. The company detailed the plan in a blog post, emphasizing its commitment to responsible energy use. The announcement has drawn attention from political leaders, including President Donald Trump, who took to Truth Social to express concern over rising electricity costs. “I never want Americans to pay higher Electricity bills because of Data Centers,” Trump wrote, adding that tech companies must “pay their own way.” He claimed his administration had worked with Microsoft and hinted at more announcements from other firms soon. The White House Press Office directed inquiries to Trump’s post, underscoring the political sensitivity of the issue. While consumer advocates welcome Microsoft’s promise, they remain cautious. Julie Bolthouse, director of land use at Virginia’s Piedmont Environmental Council, said the plan offers only broad principles and doesn’t address the core problem: the speed and scale of data center development outpacing grid planning. She pointed to Dominion Energy, Virginia’s largest utility, which is negotiating contracts for 47 gigawatts of new data center demand—double its current peak load. Bolthouse warned that unreviewed, long-term contracts between utilities and data center operators could undermine grid reliability and shift costs to ratepayers if demand doesn’t materialize. Charles Hua, founder of Powerlines, a nonprofit focused on utility reform, said data centers can be positive contributors to the grid if utilities invest in grid-enhancing technologies and energy efficiency instead of building new power plants. He stressed that this shift requires sweeping changes to outdated utility regulations to better protect consumers. As Microsoft takes a lead in addressing the energy challenge, analysts expect other Big Tech companies to follow suit. With AI demand accelerating and political scrutiny mounting, the industry may be entering a new era of accountability over its energy footprint.