Microsoft’s Community-First Plan needs more work

The rapid buildout of global digital infrastructure, including multiple data center campuses with power demands >100 MW (see Many giant data center projects advance despite risks), is placing a growing strain on local electricity and water systems, as well as testing the patience of local communities. Hyperscale facilities, colocation companies and real estate developers typically negotiate siting and utility service agreements under non-disclosure terms, announcing projects only after decisions are effectively final. This practice has increasingly provoked resistance from residents and local stakeholders that feel excluded from early planning consultation (see In the US, data center pushback is all about power).

In the face of public opposition to data center plans, Microsoft’s Community-First AI Infrastructure Plan, launched in January 2026, targets major concerns surrounding new data center campuses: rising electricity costs, heavy water use, limited local job creation and large tax breaks (see Building community-first AI infrastructure and Table 1). It also includes a commitment to invest in workforce training and local nonprofit organizations. Microsoft’s plan is intended to smooth the acceptance of new data centers; its success will depend on whether Microsoft’s actions align with the stated commitments.