President Donald Trump announced on Monday, January 13, 2026, that Microsoft Corporation will be the first major technology company to implement changes aimed at preventing American consumers from bearing the cost of electricity consumed by its artificial intelligence (AI) data centers. The announcement was made via Trump's Truth Social platform, where he stated his administration is actively working with tech giants to secure commitments that protect households from rising utility bills linked to the industry's power demand.
Trump emphasized that "big Technology Companies who build [data centers] must 'pay their own way,'" acknowledging the facilities are essential for U.S. competitiveness in AI but should not burden ordinary consumers. He specifically noted, "I never want Americans to pay higher electricity bills because of data centers." Microsoft, which did not immediately comment on the specifics of the planned measures, is expected to announce the changes within the week. Company Vice Chair and President Brad Smith is scheduled to speak at a Washington event on Tuesday.
The push comes against a backdrop of soaring electricity prices across the United States. Data from the St. Louis Federal Reserve shows the average electricity price per kilowatt-hour in U.S. cities has risen approximately 40% over the past five years. Trump has placed blame for high energy costs on the previous Biden administration, claiming electricity bills increased by 30% during that period.
The scale of data center energy consumption is massive and growing rapidly. According to Visual Capitalist, U.S. data centers consumed 224 terawatt-hours (TWh) of electricity in 2025, accounting for 5.2% of the nation's total power usage—a 21% year-over-year increase. McKinsey & Company projects this figure could exceed 600 TWh by 2030, representing 11.7% of all U.S. power consumption. Within these facilities, cooling systems account for 30-40% of energy use, while servers and IT equipment consume 40-60%.
The International Energy Agency estimates that electricity demand from AI-focused data centers is growing at 30% annually, compared to just 9% for conventional server workloads. This surge has strained power grids and raised political concerns, with the issue of rising utility costs threatening to impact the upcoming midterm elections.
Microsoft has previously faced community opposition over data center impacts. The company withdrew plans for a second data center in Caledonia, Wisconsin, after local residents expressed concerns about increased electricity costs. Brad Smith had addressed these concerns at a town hall in September, assuring residents the company was managing the situation.
Trump indicated that more announcements regarding tech company commitments on power costs are expected in the coming weeks, framing the Microsoft agreement as the first step in a broader administration effort to lower consumer costs.
