Trump targets Microsoft over AI electricity costs

US President Donald Trump announces that Microsoft will introduce major changes this week to ensure American households do not pay higher electricity bills because of AI data centres.

The announcement came as utility bills rise across multiple US states, adding to the political pressure ahead of midterm elections. At its core, the issue pits who pays for energy against accelerating AI expansion, where data centres get built, why bills rise, and how companies plan to offset the impact.

Trump says he does not want Americans to pay a higher cost for electricity because of data centres. He adds that large technology firms must cover the cost themselves.

Electricity prices reportedly rose around six per cent year on year across at least 13 states in earlier reports, with some facing sharper spikes, as Maine saw up to a 36% spike.

Microsoft President Brad Smith previously addressed concerns at a town hall in Wisconsin. He tells residents the company is doing everything it can so locals do not pay more for power due to its presence. Microsoft later scraps plans for a data centre in Caledonia after local opposition.

Microsoft relies on alternate energy sources to support the expansion of its AI development. In 2024, the company agrees to a 20-year contract for the purchase of energy from the Three Mile Island nuclear station, located within Pennsylvania, after the Trump administration approves a one billion dollar loan guarantee in November 2025.

The nuclear reactor, not located near the site of the 1979 accident, is set for startup by 2027, providing energy for 800,000 residences.

Trump hints at similar announcements being made in the future regarding Meta, Amazon, and Google. However, all of them are coming under growing pressure regarding the management of Big Tech energy costs as they affect consumers through increased US electricity bills because of AI-powered data centres.