As the surge in artificial intelligence drives up energy demand, President Donald Trump announced on Tuesday that he had reached an agreement with tech giants to ensure that the massive power consumption of AI data centers does not increase electricity bills for American citizens. Trump specifically named Microsoft as the first company to respond on social media, emphasizing that while data centers are critical to national security and AI leadership, large tech companies must "pay their own way" for the associated costs.
In response to growing backlash across the country over data center resource consumption, Microsoft's president Brad Smith unveiled specific solutions during an event near the White House. Smith pledged that Microsoft would prioritize community interests when building data centers. Key measures include paying property taxes normally in the locations of data centers and explicitly stating that no tax breaks or electricity subsidies will be accepted.
This move reflects a subtle adjustment in the Trump administration's AI policy during his second term. Although he previously signed an executive order to ease environmental regulations and speed up data center approvals, protests from communities across the country over high electricity bills, water shortages, and environmental pollution have formed a bipartisan consensus. Microsoft's move aims to ease local pressure through an infrastructure development model focused on community interests. Currently, Trump is in talks with other tech giants to encourage similar industry commitments, aiming to balance the rapid development of technology with the burden on people's livelihoods.
Key Points:
💡 Rejecting Electricity Subsidies: Microsoft has promised to pay full-price electricity for its data centers and no longer seek tax breaks from local governments, to prevent costs from being passed on to ordinary electricity users.
🤝 Government-Industry Pressure: The Trump administration is pushing tech companies to be self-sufficient. Microsoft has become the first tech giant to respond and adjust its energy payment strategy.
⚠️ Addressing Community Backlash: Due to the huge energy consumption of AI data centers, this move aims to quell strong protests across the country caused by resource shortages and rising electricity prices.
