Microsoft to Cover Full Electricity Costs for U.S. Data Centers Amid AI Expansion Concerns - DTH

Microsoft has committed to fully covering the electricity costs associated with operating its U.S. data centers, a strategic move designed to insulate consumers from utility rate hikes caused by the massive energy demands of artificial intelligence. Announced by President Brad Smith on Tuesday, January 13, 2026, the initiative positions the funding as a matter of civic responsibility following pressure from the White House for tech giants to self-fund the infrastructure required for the AI boom.

Key Points

• Microsoft pledges to pay full electricity costs for U.S. data centers to prevent rising consumer utility rates.
• Meta Platforms is cutting over 1,000 jobs in Reality Labs, shifting focus from the metaverse to AI and wearables.
• Apple launches the "Creator Studio" subscription bundle at $12.99/month, aggregating pro-level creative apps.
• The FCC revised Verizon’s unlocking rules after the carrier reported losing over 784,000 devices to fraud in 2023.

Microsoft Addresses Grid Strain Concerns

Amid growing public and political concern regarding the strain AI infrastructure places on the national power grid, Microsoft announced it will work directly with utility companies to cover power costs, boost efficiency, and reduce water usage. This decision comes shortly after the U.S. President publicly commented on the necessity for major technology firms to "pay their own way" regarding the energy-intensive requirements of generative AI.

By absorbing these costs, Microsoft aims to mitigate the risk of increased utility rates for general consumers, a potential side effect of the unprecedented power demand from new data centers. This proactive stance attempts to balance aggressive infrastructure expansion with regulatory compliance and public sentiment.

Meta Pivots from Metaverse to AI

Meta Platforms is executing a significant strategic pivot within its Reality Labs division, cutting approximately 10% of the unit's workforce—over 1,000 jobs. The restructuring signals a resource shift away from pure virtual reality and the metaverse toward high-growth areas including AI, wearables, and mobile features.

According to an internal memo from CTO Andrew Bosworth, the decision reflects market realities: the company has seen stronger consumer reception for AI-powered smart glasses compared to the high capital costs and slower adoption of the metaverse. While the company will retain a smaller VR hardware unit, its Horizon software will now focus primarily on mobile devices to drive user adoption.

"The change follows the better reception of AI-powered glasses and the high cost of the metaverse effort."

Simultaneously, Meta announced the launch of MetaMP Compute, an initiative to build tens of gigawatts of energy capacity to support its AI ambitions. To guide this expansion, CEO Mark Zuckerberg has appointed Santos Jihartin to lead technical architecture and Daniel Gross to oversee long-term capacity strategy.

Apple Launches Creator Studio Bundle

In a move to streamline its software services, Apple unveiled the Creator Studio subscription bundle. Priced at $12.99 monthly or $129 annually, the package provides access to six professional-grade applications, including Final Cut Pro, Logic Pro, and Pixelmator Pro, the latter of which is making its debut on the iPad.

Set to launch on January 28, the bundle includes a one-month free trial and discounted rates for the education sector. Apple executive Eddie Cue positioned the subscription as a value-driven option for content creators, coinciding with significant feature updates across the included applications.

Regulatory Shifts: Verizon and India

The Federal Communications Commission (FCC) has revised a regulation that previously forced Verizon to unlock mobile phones 60 days after activation. Verizon argued the loophole cost the company hundreds of millions of dollars annually, citing organized criminal networks that trafficked unlocked devices to Russia, China, and Cuba.

Data provided by Verizon indicated that 784,073 devices were lost to fraud in 2023 alone. The FCC acknowledged that the quick-unlock policy facilitated illicit activities, including drug running and human smuggling, and has adjusted the rule to align closer to industry standards to curb device theft.

Internationally, India is facing pushback from privacy advocates and tech giants like Apple and Samsung regarding proposed security rules. The new mandate requires manufacturers to share source code and retain phone logs for one year. Critics argue these measures grant excessive surveillance powers to the government and create significant security vulnerabilities.

Automotive and Software Updates

Tesla has reintroduced the seven-seat configuration for the 2026 Model Y in the U.S. market. Available exclusively on the premium all-wheel-drive long-range model for an additional $2,500, the update targets families and aims to increase competitiveness in the crowded EV crossover market.

Meanwhile, Salesforce has rolled out its generative AI-powered Slackbot as a "super agent" for enterprise customers. The tool can handle complex administrative tasks and integrates with Microsoft Teams and Google Drive. Additionally, beta code in iOS 26.3 suggests Apple is preparing to roll out end-to-end encryption for RCS messages, pending carrier support.