Trump claims Microsoft will prevent consumers from paying for AI power costs

• Microsoft will 'make major changes beginning this week' to ensure consumers don't absorb data center power costs through higher utility bills
• U.S. electricity prices increased in August compared to the prior year, particularly in states with significant data center presence
• Tech giants are rapidly expanding power-intensive data centers, with Meta recently signing deals with three nuclear power companies for an Ohio facility

Summary: Trump Claims Microsoft Will Absorb AI Data Center Power Costs

President Donald Trump announced Monday via social media that Microsoft will implement "major changes beginning this week" to prevent American consumers from facing higher utility bills resulting from AI data center expansion. Trump stated his administration is securing commitments from major technology companies to protect consumers from electricity cost increases.

Key Details:

• Microsoft will be the first company to announce measures ensuring Americans don't "pick up the tab" for data center power consumption
• Trump indicated additional announcements from other tech companies will follow in coming weeks
• U.S. electricity prices rose 3% year-over-year in August, particularly affecting states with significant data center presence

Market Context:

The announcement comes as major tech companies rapidly expand capital expenditures for power-intensive AI data centers. Last week, Meta signed agreements with three nuclear power companies for an Ohio data center facility. The AI boom has driven aggressive infrastructure investment across the sector.

Trump's focus on consumer costs precedes upcoming midterm elections, as his administration seeks to offset economic impacts from tariffs imposed last year. Recent initiatives include announcing $200 billion in mortgage bond purchases to lower rates and providing cost-of-living increases for military personnel.

Microsoft's Position:

Microsoft President Brad Smith previously acknowledged the issue at a September town hall in Wisconsin, stating the company is "doing everything we can" to manage electricity costs for local residents. However, Microsoft withdrew plans for a Caledonia, Wisconsin data center amid local opposition, despite proceeding with a facility 20 miles away in Mount Pleasant.

Microsoft did not immediately comment on Trump's announcement.