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Microsoft Corporation Agrees to Pay For Higher Electricity Consumption Due to Data Centers

Microsoft Corporation (NASDAQ:MSFT) is one of the 15 Best S&P 500 Stocks to Look For in 2026.

On January 12, Reuters reported that President Donald Trump said Microsoft Corporation (NASDAQ:MSFT) will make notable changes to ensure that Americans do not pay for higher electricity consumption due to data centers. In a social media post on Monday, Trump said:

I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks.

In response, on January 13, Microsoft Corporation (NASDAQ:MSFT) revealed a “Community-First AI Infrastructure” policy. Microsoft ensured that the community would not bear the full cost of electricity consumption and grid expansion associated with its data centers. Microsoft’s Vice Chair and President, Brad Smith, said:

We believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI.

The International Energy Agency (IEA) estimates the U.S. datacenter electricity demand to more than triple by 2035. This means that the demand will grow from 200 terawatt-hours to 640 terawatt-hours per year. The rising demand for data centers, along with the rapid electrification of manufacturing and other sectors of the economy, will drive up electricity costs.

Microsoft has pledged to cover its data center electricity costs, along with limited use of water. The company remains focused on its AI infrastructure and is committed to working with local utilities to plan and estimate its projected power requirements in advance.

Microsoft Corporation (NASDAQ:MSFT) is a leading provider of AI software and services. The company develops and supports software, services, devices, and solutions globally.

While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best New Penny Stocks to Invest In and 13 Best Gold Mining Companies to Invest In Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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