Microsoft will bear the cost of expanding AI computing power supply on its own

Noel Walsh, head of Microsoft's Cloud Operations and Innovation department, stated that the company will bear the electricity costs associated with the expansion of data centers, without relying on government subsidies or passing costs onto other electricity consumers. Microsoft plans to invest $117 billion this year in building AI and cloud service computing power.

Microsoft is collaborating with Chevron and investment firm Engine No. 1 to advance the large data center and supporting power project Project Kilby in West Texas. The project was previously affected by a local data center approval suspension but is still scheduled to begin construction in 2028 and fully operate by 2031. Chevron stated that the project will create jobs and stabilize tax revenue for the local area; Microsoft indicated that data center construction must bring net benefits to the community where it is located, or it will be difficult to continue.