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A Community-First Approach to Building AI Infrastructure

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Microsoft unveiled a five-point plan to build “community-first” AI infrastructure in the U.S., pledging to shoulder the full cost of power and water needs tied to its expanding data-center footprint while boosting local jobs and tax bases. The company said it will seek electricity rates that prevent residential cross-subsidies, contract early with utilities, and fund transmission and substation upgrades; it has already contracted 7.9 GW of generation in MISO and will press for faster permitting and modernized rate design. On water, Microsoft committed to a 40% improvement in water-use intensity by 2030, broader adoption of closed-loop cooling, and replenishing more water than it withdraws in the same districts, with project-level transparency. The plan pairs construction and operations hiring with apprenticeship partnerships through NABTU and expanded Datacenter Academy programs, citing labor shortages in skilled trades. Microsoft also vowed to forgo local tax abatements, highlighting Quincy, Wash., where property-tax revenue growth and new public amenities followed data-center development. The initiative includes AI literacy for schools, libraries and small businesses in host communities, with a rollout beginning in the first half of 2026.

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