Microsoft AI Brings Its Own Beer to Quincy

Letter to Ephesians: More states are enacting or considering new “Bring Your Own Beer, er, Power” laws requiring giant AI data centers to pay for their own energy rather than sticking grid costs onto local utility ratepayers. Can Microsoft be trusted to show the way?

Delaware, for instance, has enacted a BYOP law, while Pennsylvania Gov. Josh Shapiro recently signed an EO implementing guardrails requiring data center developers to cover the full cost of the energy required for their projects. Texas adopted similar regulatory rules, while the Regional Grid Operators managing the power grid across 13 mid-Atlantic & Midwestern states has filed proposals with fed regulators to mandate large new data centers to either bring their own power supply with them or fund needed additional power capacity. Yet, skeptical residents in those states & across America continue to raise alarms over rising electricity prices & water use, as well as site locations & promised jobs falling short of sales pitches. Alarmed by the backlash, proponents of new cloud computing & artificial intelligence facilities are scrambling to display proofs of their ability to bring tangible benefits to host communities. A Fox News report details how a partnership between Microsoft & a “tiny farming town you’ve never heard of” may “sell America on data centers” after all.

The showcase for America’s data-center boom is Washington’s Quincy. We’re told, “long known for potato fields, apple orchards & food processing plants,” Quincy has spent two decades attracting some of the world’s largest tech companies.” Microsoft, in fact, started building data centers here 20 years ago thanks to the area’s cheap land, cool climate & hydropower from the Columbia River. The tech giant is citing Quincy as proof data centers can deliver on its promises, e.g., in helping to build a new high school, aquatic center & hospital; a new indoor sports complex is also being planned. Microsoft is also promising all locales as well as Quincy that it will be asking local utilities to set rates high enough to cover data-center energy use & grid upgrades without raising prices for resident. Recall, however, it took 20 or so years to get Microsoft to get religion, come clean on its energy needs & local impact. Meanwhile, expect other communities to keep ramping up the mandates.

Davd Soul