TLDR
- Trump announces Microsoft will modify operations this week to stop consumers from paying for AI data center power usage
- US electricity prices climbed 40% over five years as data centers consumed 5.2% of total national power in 2025
- Administration coordinating with multiple tech companies for similar commitments to be announced soon
- McKinsey projects data center electricity consumption will reach 600 terawatt hours by 2030
- Microsoft previously pulled out of Wisconsin data center project after residents opposed higher utility bills
President Donald Trump revealed Monday that Microsoft will implement changes to prevent American consumers from paying increased electricity bills caused by artificial intelligence data centers. The announcement marks the first commitment from a major tech company under the administration’s new initiative.
Trump takes aim at rising power bills ⚡️
Says tech companies like Microsoft $MSFT should cover their own energy costs – not American families. pic.twitter.com/EQgGeN1K0p
— Trader Edge (@Pro_Trader_Edge) January 13, 2026
Trump shared the news through his Truth Social account. He confirmed his team has been working directly with Microsoft to reach this agreement.
The president emphasized his administration will not allow Americans to face higher utility costs because of data center expansion. He said similar announcements from other technology companies will follow in coming weeks.
Microsoft has not provided specifics about what operational changes it plans to make. The company remained silent when asked for comment about the agreement.
Power Demand from AI Infrastructure Surging
American data centers used 224 terawatt hours of electricity throughout 2025. This amount equals 5.2% of the country’s entire power consumption and represents a 21% jump from the prior year.
Electricity prices have climbed sharply across the nation during this period. The average cost per kilowatt-hour in US cities has increased 40% over the last five years according to Federal Reserve data.
Future projections show even steeper growth ahead. McKinsey & Company estimates data center power consumption could exceed 600 terawatt hours by decade’s end.
This would mean data centers account for nearly 12% of all American electricity by 2030. Artificial intelligence workloads are driving the surge with 30% annual growth in power requirements.
Standard server operations grow at just 9% yearly for comparison. Data center cooling systems alone consume 30% to 40% of total facility energy while servers use 40% to 60%.
Big Tech Expanding Data Center Footprint
Technology giants have ramped up data center construction to meet AI computing demands. Meta revealed agreements with three nuclear power providers last week for a new Ohio facility.
Wall Street has seen these companies announce plans to boost infrastructure spending. The building spree has sparked concern in host communities about rising local electricity rates.
Microsoft addressed this issue during a Wisconsin town hall meeting in September. Company president Brad Smith assured residents the tech giant was managing the situation to prevent their bills from increasing.
The company subsequently canceled plans for a Caledonia, Wisconsin data center after community pushback. That proposed facility was planned 20 miles from an existing Microsoft data center in Mount Pleasant.
American utility providers raised consumer electricity charges by 6% in August 2025 versus the previous August. States housing numerous data centers experienced comparable rate increases.
Trump’s focus on this issue aligns with his broader effort to reduce consumer costs before midterm elections. Recent administration moves include mortgage bond purchases aimed at lowering home loan rates and direct payments to service members.
The president described data centers as critical to maintaining America’s leadership position in artificial intelligence. He stressed that companies building these facilities must cover their own energy expenses rather than shifting costs to households.
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