Microsoft vows to absorb AI power costs, rejecting subsidies amid data center scrutiny

Microsoft's President of Cloud Operations and Innovation, Noelle Walsh, stated at the BloombergNEF conference in Houston that the company will cover the electricity costs associated with its AI expansion internally, refusing to seek government subsidies or pass these expenses onto local residents. This stance directly addresses local concerns regarding data centers straining power grids and increasing residential electricity prices. The commitment is backed by a substantial financial commitment, with Microsoft planning to invest $117 billion this year toward expanding its computing capacity. Walsh emphasized a 'community first' approach, insisting that new projects must genuinely benefit local populations. In West Texas, the advanced 'Project Kilby,' a collaboration involving Chevron and Joulent (incubated by Engine No. 1), is currently stalled due to local approval suspensions. Chevron's head of new energy business noted that only projects providing stable tax revenue and net community benefits have a chance of succeeding, while Chevron itself still targets a 2028 start and 2031 full operation for the project.