Brad Smith outlines Microsoft’s five-point plan for community-first AI infrastructure in the US

Microsoft is setting out a new framework for how it builds and operates AI data centers in the United States, with commitments spanning energy costs, water use, jobs, tax contributions, and local AI skills development.

Photo credit: Microsoft

Brad Smith, Vice Chair and President at Microsoft, shared a LinkedIn post outlining a five-point framework the company said would guide how it builds and operates AI data centers across the United States.

Microsoft develops cloud platforms, enterprise software, and AI systems that depend on large-scale data center infrastructure. As demand for generative AI and compute-intensive workloads increases, the company has been accelerating investment in new data centers, drawing increased scrutiny from communities over energy, water, and local impact.

Smith said the plan, described as Community-First AI Infrastructure, was intended to set expectations for how Microsoft works with communities hosting its facilities, framing AI infrastructure as a long-term civic issue rather than a purely technical one.

Electricity costs positioned as a non-negotiable issue

The first commitment focuses on electricity pricing and grid impact. Microsoft said it would pay utility rates high enough to ensure data center electricity costs are not passed on to residential customers.

The company committed to working directly with utilities and state commissions to cover the full cost of electricity infrastructure required for its facilities, including transmission and substation upgrades. It also said it would contract in advance for power needs and fund grid improvements where expansion is required.

Microsoft positioned this approach as a response to rising residential electricity prices and aging grid infrastructure, arguing that public households should not subsidize AI growth. The company also said it would advocate for public policies that support grid modernization, clean energy generation, and faster permitting for large power projects.

Water use commitments address local supply concerns

The second pillar addresses water consumption, a growing point of resistance in many data center regions. Microsoft said it would reduce water use across its data center fleet and replenish more water than it withdraws within the same local water districts.

The company outlined plans to improve water-use efficiency by forty percent by 2030 and expand the use of closed-loop cooling systems that eliminate the need for potable water. It also committed to funding water infrastructure upgrades where capacity is constrained and to publishing regional water-use data for transparency.

Microsoft pointed to existing projects, including water reuse systems and leak-detection partnerships with utilities, as models it plans to expand. The company framed replenishment efforts as measurable, localized investments rather than offsets elsewhere.

Job creation tied to construction and long-term operations

The third commitment focuses on employment, both during construction and once data centers are operational. Microsoft said new facilities typically generate thousands of construction jobs and hundreds of permanent operations roles.

To support local hiring, the company said it would invest in training partnerships, including apprenticeships with building trades unions and expansion of its Datacenter Academy program. The program works with community colleges and vocational schools to prepare workers for roles in data center operations, facilities management, and IT infrastructure.

Microsoft also said it would use its policy influence to support workforce development initiatives, citing shortages in skilled trades and infrastructure roles as AI data center construction accelerates nationwide.

Tax contributions positioned as core community benefit

The fourth pillar centers on local tax impact. Microsoft said it would not seek property tax reductions for data center developments and would pay its full share of local taxes.

The company framed property tax revenue as a critical funding source for hospitals, schools, libraries, and public services, particularly in rural or post-industrial regions. It cited long-running data center operations in Quincy, Washington, as an example of sustained tax contributions supporting local services and economic activity.

Microsoft said it intends to apply the same approach consistently across all regions where it builds and operates facilities.

AI skills and nonprofit investment extend beyond infrastructure

The fifth commitment focuses on community investment beyond physical infrastructure. Microsoft said it would invest in AI training and skills development for students, educators, adults, and small businesses in data center regions.

Planned initiatives include partnerships with K-12 schools, community colleges, and universities to provide age-appropriate AI literacy education, as well as AI learning hubs hosted in local libraries. The company also said it would support AI upskilling for small businesses through chambers of commerce and workforce organizations.

In addition, Microsoft committed to expanding its nonprofit support model into data center communities, including employee donation and volunteer matching programs and locally based community liaisons.

Long-term framing emphasizes local trust

Smith positioned the plan as a response to historical lessons from previous infrastructure expansions, arguing that large-scale development only succeeds when communities believe the benefits outweigh the costs.

He said Microsoft intended to launch the framework in the United States first, with similar models planned for other countries, adding that “building AI infrastructure isn’t just about technology, it’s about a long-term view that benefits everyone.”

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