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.

Dupe?

[lazarus]

I think this may be the first time I've seen a dupe immediately following the duplicated story. Unless there is something remarkable about Trump announcing something before the company involved gets a chance to comment on it.

Re:

[aitikin]

I think this may be the first time I've seen a dupe immediately following the duplicated story. Unless there is something remarkable about Trump announcing something before the company involved gets a chance to comment on it.

There was an hour and 8 minutes between postings! Back when I first started coming to /. that was plenty of time for proper comments (and goatse and Natalie Portman and grits)!

will they pay for growth?

[spacepimp]

Many of the power facilities will need to expand to meet the power needs of these AI data centers. Paying for power and passing the cost of growth along to tax payers are two different things.

Re:

[Himmy32]

This is the real issue, the time scale for power infrastructure planning is so long. So large short scale increases or decreases in demand are problematic.

So while they are opening, the power company needs to keep running that crappy coal plant that they were trying to get rid of. And then if they close up shop 10 years down the line for greener pastures, the public is still on the hook for maintaining all that new power infrastructure that got built to meet demand.

Re:

[whitroth]

Stop. Most coal plants have been shut down for years. You seem to have missed the cutover to gas.

And meanwhile, we're supposed to get a fucking datacenter, and our power company is asking for a 23% hike.

Re:

[Himmy32]

There are three delayed coal plants in Wisconsin, a place where Microsoft has has a wishy washy commitment [cnbc.com] to new data centers.

• Oak Creek / Kenosha [wpr.org]
• Columbia [utilitydive.com]

Re:

[larryjoe]

Many of the power facilities will need to expand to meet the power needs of these AI data centers. Paying for power and passing the cost of growth along to tax payers are two different things.

Yes, semantics. What does "full electricity costs" mean? If a community is not growing and its electricity demands are not growing, then the electricity rates for that community should only grow based on inflation for electricity supply and maintenance costs. If Microsoft and other data centers can pull that off, then they would have truly paid for the full electricity costs. Of course, that won't happen. Microsoft is just one data center customer, so they can claim that they paid their full costs and

Replenish more water?

[mister_hoberman_to_y]

How could Microsoft replenish more water than they use?

Re:

[ByTor-2112]

I'm certain they mean that they will pay to expand the water treatment capacity of the municipality by more than their consumption.

There are several datacenter's being proposed in my area, all of which are being met by what I think is ridiculous backlash, but one of the genuine concerns is that the city said "we have enough capacity" for their water requirements -- but that is capacity that we (the citizens) paid for ourselves for our own use, and we'll have to pay for it a second time because the datacente

Re:

[stabiesoft]

You are assuming there is water to be had. In W Tex and AZ there is not. Both are destinations for data centers for their cheap energy. Especially W Tex where there are many gas wells.

Re:

[ByTor-2112]

if the original water source is plentiful and can be used

Re:

[stabiesoft]

Very few areas in today's world have adequate supply all the time. Atlanta a few years ago suffered a drought and there was concern about sufficient availability. Atlanta in wet Georgia. Water resources (think dams) were built in the heyday of 1920's-1950's. They are built pretty much where they can be. So the stored water part of the equation is now fixed. Unfortunately population expanded since they were built. And the demand on the stored water in a dry period is now commonly an issue. Some areas like TX

Re: Replenish more water?

[mister_hoberman_to_y]

Well I hope at least maintain a closed-circuit supply or they put the water back where they found it. Not, for example, to do something like pumping it out of an underground aquifer and then dumping it into a surface river.

Re:

[ByTor-2112]

Yes, well, you can be certain this is happening somewhere. If they are using muni water then it's whatever the original source is.

Who knows, maybe in a few decades we'll end up having to do some kind of national "Roman aqueduct" style project to send water all over the country.

Re:

[JoshZK]

People will just cry why arn't they sharing all that water then.

Hmmm

[Ol Olsoc]

"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."

That sounds like Microsoft is planning to build Hydro dams, because I can't figure out another way they are going to have more water after they go in than when they started. Sounds like people getting displaced now, not just crazy high power and water bills.

Or maybe just more bullshit from Microsoft.

Re:

[jenningsthecat]

Or maybe just more bullshit from Microsoft.

Ladies and gentlemen, we have a winner! (Of course, betting on Microsoft bullshitting is the equivalent of betting on a one-horse race).

Re: Hmmm

[SirSpanksALot]

Sounds like a good idea - that'll give them all the power they need too.

Re:

[Himmy32]

Sounds like water treatment capacity on sites with closed loop cooling.

Paid for with telemetry

[xack]

All those AI data centers will be full of high value telemetry that they can sell to the biggest data brokers. The whole planet will be mined for that sweet telemetry. Forget the Dyson sphere, this is the Copilot Sphere.

The corporate process

[rknop]

I love how Microsoft has to plan an initiative for four months to say that they will be paying their electricity bills.

To little to late

[DarkOx]

I don't think Microsoft talking about a kinder gentler kind of data-center is going to do much for public perception/opinion at this point.

I also really don't think forgoing tax abatement's is going to have much real impact either. The location of a lot of these new builds are being selected for cheap land values in States with utility regulation that operators can game to spread their infrastructure enhancement costs onto others. - Taxes generally speaking were not high in these locations in the first plac

Re: To little to late

[SirSpanksALot]

Seems like the water things should be easy... They use water for cooling... Drill 2 wells, one for drawing, and one for injection - it effectively becomes a closed loop that doesn't lower the water table - it's one of the more inexpensive ways to do geothermal heating/cooling without requiring a large ground loop installation.

rising electricity costs the only consideration?

[tigerstyle]

don't let them build a data center b/c they promise to cover the electricity costs! corporate greed knows no bounds. we all know this by now. stand up and fight for what is yours, people! even if they agree to pay your electricity bills in full don't be duped by these scum bags.

The flex

[stealth_finger]

Is saying they'll pay for what they use and not pass costs on the flex that they think it is? I don't think it is.

whoop de fuck

[drinkypoo]

pledging to pay full electricity costs

So fucking what? Those costs are going to go up as the demand goes up, so what they are paying isn't going to stop everyone else's bills from going up. They might go up slightly less, but someone is still going to have to pay for the cost of producing more generation capacity, and it sure isn't going to be the utility.

Re:

[ByTor-2112]

Look, I understand your skepticism. I think this problem will become solve itself when the AI bubble pops and we are left with abandoned datacenters all over like empty malls from the 80s and 90s.

But, in the current time, at least this is some motion in the right direction. It shows that backlash is having an impact. The article is scant on details, but at least it's an acknowledgement that the status quo isn't working for communities. So concerned citizens should press for additional details and scrutinize

An Ai Data Center is a Enviromental Obscenity

[BrendaEM]

AI purveyor propose to do nothing but eliminate organic life.

Microsoft's Trustworthiness is Dubious

[BrendaEM]

Let's see... Microsoft stole disk-compression from Stack Electronics, had hidden system calls in Windows for Office, ripped of Novell's network stack, coded workaround "compatibility bits" to circumvent IBM's (their partner's) CMOS, and stole Apple's Quicktime code--copyright banner and all, but you can trust them : P

Remember

[RitchCraft]

Remember, Microsoft is the king of bullshit.

Pondering

[coopertempleclause]

I wonder how many of these "pledges" will be legally binding... like how the telecoms companies promised to build US infrastructure with the giant handouts of taxpayer money they were given, but instead handed over to shareholders.