Microsoft says it will pay higher rates to cover data center electricity use

Brad Smith, Microsoft’s president, said on Tuesday that the company wants to pay for the electricity its data centers use so they do not raise costs for ordinary consumers.

In a blog post ahead of a speech on artificial intelligence, Mr. Smith wrote, “We’ll ask utilities and public commissions to set our rates high enough to cover the electricity costs for our data centers.” Microsoft and other large technology companies have said they want to pay their fair share, but the Times noted that determining how much data centers should pay is not straightforward and has sparked fights in some states.

The topic has also become politically charged: the paper said it turned into a hot button in November’s elections, and President Trump wrote on social media that Microsoft was the first of several tech companies he expected to address the issue, adding, “I never want Americans to pay higher Electricity bills because of Data Centers.”

Mr. Smith reiterated that Microsoft wants to avoid affecting other electricity customers; how rates will ultimately be set or resolved across states was not detailed in the post, and remains a contested issue in some places.

Key Topics

Tech, Microsoft, Brad Smith, Data Centers, Electricity Rates, Public Utility Commissions