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News  ›  Benzinga

Trump Says Microsoft, Big Tech Must Bear Data Center Power Bills, So Americans Don't 'Pick Up The Tab'

Benzinga Logo Benzinga By Namrata Sen
Trump Says Microsoft, Big Tech Must Bear Data Center Power Bills, So Americans Don't 'Pick Up The Tab'

President Trump announced his administration is working with major tech companies, particularly Microsoft, to ensure they bear the costs of data center power consumption rather than passing it to American consumers. This comes as data center electricity demand is expected to nearly triple to 12% of total U.S. electricity by 2028, causing utility rate hikes and grid reliability concerns.

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Trump's directive pressures Microsoft to absorb data center power costs, potentially impacting profitability. Additionally, Microsoft faces local pushback on its Michigan data center project due to energy demands and rezoning concerns, adding operational and reputational challenges.