<div id="readability-page-1"><div><div><p>On Friday, venture capitalist<strong> Chamath Palihapitiya</strong> warned that Big Tech firms such as <strong>Microsoft Corp.</strong> (NASDAQ:MSFT) and <strong>Alphabet Inc</strong>. (NASDAQ:GOOG) (NASDAQ:GOOGL) could face growing backlash from local communities unless they act to offset rising electricity rates tied to massive AI data center expansion.</p><h2><strong>Microsoft Cancels Wisconsin Project Amid Local Opposition</strong></h2><p>Microsoft has scrapped plans to build a large-scale data center in Caledonia, Wisconsin, following pushback from residents and local officials concerned about energy use and infrastructure strain.</p><p>&#34;Based on the community feedback we heard, we have chosen not to move forward with this site,&#34; Microsoft told the Milwaukee Journal Sentinel, noting it still plans to invest elsewhere in Racine County.</p><p>The canceled project, known as Project Nova, would have spanned 244 acres and included a 15-acre substation, raising concerns about potential spikes in power bills and disruptions to local grids.</p><p>The decision follows Google's reported decision last month to withdraw a proposed $468-acre data center project in Indiana after similar community objections.</p><h2><strong>Palihapitiya: Hyperscalers Must Pay Their Share</strong></h2><p>Commenting on the rising opposition, Palihapitiya said on <strong>X</strong>, formerly <strong>Twitter</strong>, that pushback against data centers is just getting started. </p><p>He said hyperscalers need to get serious about adding clean energy capacity or risk community revolts.</p><p>&#34;The simple solution for hyperscalers is as follows,&#34; Palihapitiya wrote. &#34;Option A: agree to a higher rate base with the utility so that local citizens won't see increased electricity rates. Option B: agree to pay for residential solar and storage for local citizens.&#34;</p><p>He warned that unless companies like Microsoft and <strong>Google</strong> use their &#34;gobs of free cash flow&#34; to cushion ratepayer inflation, &#34;you should expect to see a lot more pushback.&#34;</p><p>Microsoft scores strongly in <strong>Benzinga's Edge Stock Rankings</strong> for Momentum, Growth, and Quality, with positive trends across short, medium and long-term performance. Get a full breakdown of the stock, including comparisons with its peers and competitors.</p><ul> <li><strong>Nvidia CEO Jensen Huang Says Intel Spent 33 Years ‘Trying To Kill Us' But Now Calls The Chip Rival A Partner: ‘We're Lovers, Not Fighters'</strong></li> </ul><p><em>Image via Shutterstock</em></p></div></div></div>

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<p>Venture capitalist Chamath Palihapitiya warned that Big Tech firms like Microsoft and Google may face backlash from communities unless they address rising electricity costs linked to AI data center expansions. Microsoft recently canceled a data center project in Wisconsin due to local opposition over energy use. Palihapitiya suggested that hyperscalers should either agree to higher utility rates or invest in local solar energy to mitigate community concerns. He emphasized that without action, companies could expect increased pushback from residents.</p>

- Venture capitalist Chamath Palihapitiya warned that Big Tech firms like Microsoft and Alphabet may face backlash from communities due to rising electricity rates linked to AI data center expansions.  
- Microsoft canceled its Project Nova data center in Wisconsin after local opposition over energy use, while Google withdrew a proposed data center in Indiana for similar reasons.  
- Palihapitiya urged hyperscalers to invest in clean energy solutions to mitigate community concerns and avoid further pushback.

Chamath Palihapitiya Says Hyperscalers Like Microsoft, Google Need To Cushion Rising Power Bills Or 'See A Lot More Pushback'