# Microsoft Reiterates Pledge to Cover Data Center Power Costs, Some Grid Upgrades By John Kim Canonical URL: https://www.tokenpost.com/news/business/55138 Published: 2026-11-12T08:43:40.000Z Updated: 2026-11-12T08:43:40.000Z Section: Business > Microsoft's January policy calls for utility rates that cover the cost of serving its data centers and payment for transmission and substation work required by expansion. Microsoft cloud infrastructure chief Noelle Walsh reiterated Wednesday, Nov. 11, that the company would pay its own way as data centers expand, saying other electricity customers should not bear those costs. Walsh made the remarks at the BNEF Summit in Houston. Microsoft's January policy sets out the specific terms: the company will work with utilities and state commissions on rates that cover the cost of serving its data centers, and pay for transmission and substation improvements when expansion requires them. The policy addresses electricity and related grid infrastructure. It does not commit Microsoft to finance every construction cost for every data center. Microsoft outlined a project example on June 22, when Walsh said the company would fund energy infrastructure for its planned campus in Pecos, Texas. The campus is expected to add about 2 gigawatts of global data center capacity. Microsoft said the multibillion-dollar investment would span five to seven years. Google has also pledged to cover the electricity its data centers use and their direct grid-connection costs under [Google’s data center community plan](). OpenAI also made a data-center power pledge on Nov. 5. Microsoft's fiscal 2026 annual report said continued investment in cloud and AI infrastructure would raise operating costs and may reduce operating margins. ## Links in this article - [Google’s data center community plan](https://www.tokenpost.com/news/regulation/38668)