Microsoft announced a partnership with the Midcontinent Independent System Operator (MISO) to modernize the Midwest power grid, aiming to upgrade infrastructure and improve reliability for the region’s growing electricity demand, especially from Microsoft’s expanding AI and data‑center operations.
The collaboration will leverage Microsoft Azure and Microsoft Foundry AI to deploy advanced analytics, forecasting, and automation across MISO’s 15‑state and Manitoba service area, which serves 42 million people. Microsoft will invest an undisclosed amount, with a phased implementation expected to begin in 2026 and complete by 2028.
The partnership addresses the Midwest’s aging grid, which faces challenges from retiring coal plants, increasing renewable penetration, and the rapid rise in data‑center load. Microsoft’s AI tools will help MISO optimize transmission planning, reduce outage risk, and accelerate integration of distributed energy resources.
Management comments highlight the strategic fit: MISO’s Chief Information and Digital Officer Nirav Shah said the alliance “harnesses advanced analytics and cloud platforms to improve forecasting, enhance decision‑making, and build resilience.” Microsoft’s VP for the energy and resources industry, Darryl Willis, added that the move “builds a future‑ready, more resilient grid that can anticipate challenges, optimize performance, and deliver reliable power as electrification and demand grow.”
The deal signals Microsoft’s commitment to securing the power needed for its AI workloads while advancing its sustainability goals. By modernizing the grid, Microsoft can reduce the carbon intensity of its data‑center operations and support its target of becoming carbon negative by 2030, even as AI demand continues to rise.
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