Microsoft Pledges Full Power Costs, No Tax Breaks in Response To AI Data Center Backlash

Microsoft announced Tuesday what it calls a "community first" initiative for its AI data centers, pledging to pay full electricity costs and reject local property tax breaks following months of growing opposition from residents facing higher power bills. The announcement in Washington, D.C. marks a clear departure from past practices; Microsoft has previously accepted tax abatements for data centers in Ohio and Iowa. Brad Smith, Microsoft's president, said the company has been developing the initiative since September. Residential power prices in data center hubs like Virginia, Illinois, and Ohio jumped 12-16% over the past year, faster than the U.S. average. Three Democratic senators launched an investigation last month into whether tech giants are raising residential bills. Microsoft also pledged a 40% improvement in water efficiency by 2030 and committed to replenishing more water than it uses in each district where it operates.

Read more of this story at Slashdot.