Microsoft pledges water-positive AI data centers, full power payments

Microsoft has launched its Community First AI Infrastructure initiative to address environmental and economic concerns linked to the rapid expansion of its U.S. AI data centers. The company commits to preventing increases in residential electricity prices and avoiding strain on local water supplies caused by its facilities. Key pledges include paying electricity rates that fully cover the costs imposed by data centers, funding necessary grid upgrades, and collaborating early with utilities to plan power needs. Microsoft has already supported nearly eight gigawatts of new electricity generation in the Midwest, exceeding its current regional consumption, and aims to push for rate structures that prevent residential customers from subsidizing data center growth. On water usage, Microsoft plans to reduce data center water use intensity by 40% by 2030, relying on closed-loop cooling systems and minimizing potable water use. The company will fund water infrastructure improvements where local systems face capacity limits and has committed over $25 million for water and sewer upgrades near a Virginia data center. Additionally, Microsoft pledges to replenish more water than it