As artificial intelligence continues to expand across the economy, Microsoft says the technology’s success will depend on reaching communities beyond major urban centers. Microsoft Strategic Advisor Mary Snapp says widespread adoption, particularly in rural America, will be critical to realizing AI’s full potential.
“The most important thing about this industrial revolution and the invention of this kind of AI is not who invented it, but how much it is diffused and used rapidly across the country. So right now, across America, urban areas use generative AI, about 33% of the population households, but in rural, that’s only about 16%.”
As demand for AI grows, so does the need for the data centers that power it. Snapp says earning trust in local communities is a critical part of that expansion.
“We cannot build data centers unless we’re good neighbors. So in March of 2026, Microsoft removed the requirement for NDAs with the communities in which we were negotiating. And in January one, we announced our community AI-first infrastructure with five clear points. First, we’re gonna pay for the electricity we consume. And in places, we’ll help to augment it. In Pecos, Texas, where we are building a major data center, we’re also co-locating natural gas power. Second, we’re gonna minimize water and replenish what we use. In Quincy, we recycle data center cooling water, and we cut our potable water by about 97%. Third, we try to create jobs for the residents. In Iowa, our data centers employ about 540 people, and during peak construction employed over 1,600 people. We’re gonna add to the tax base, and we’re gonna fund hospital schools and parks with that. In Indiana, we announced a $5 million investment in the community at launch. And finally, we hope to strengthen our communities with work with nonprofits and partnerships. That might be the Dolly Parton Imagination Library, which we helped in Arizona. It could be parks, it could be local food pantries.”
Snapp says the investment required to support AI development is enormous, with much of that spending occurring here in the United States.
“Today, Microsoft’s CapEx (capital expenditures) costs are more than double those people costs. And those CapEx costs are mostly due to data center infrastructure. About two thirds of that is chips and networking, but the rest is in construction, the buildings, the land, and the power. A large chunk of that $175 billion being spent by us this calendar year will be in the United States. And still, we don’t have the capacity to meet the demand.”
For Snapp, the discussion is also personal. Raised in rural Kansas, she says connecting technology and rural communities has been a major focus of her work at Microsoft.
“You know, my family laughs when I say that I’m from rural Kansas, because when I was 18, I couldn’t wait to get out of Dodge. But it is true that some things come full circle. And much of the last 10 years with Microsoft, I’ve spent trying to connect rural America with Microsoft and to make some strong connections there with National 4-H Council, where I’ve served on the board for eight years, and we’ve brought Minecraft for education to kids there, to FFA, where I chaired the Corporate Sponsors Board, and we now have FarmBeats for Students in FFA classrooms on the Board of Farm Foundation, and also Grand Farm in Fargo, North Dakota. So I’m happy not to have gotten away from my rural roots.”
Snapp says AI is already being used in education, agriculture, research and small businesses across the country. She says broader adoption, investments in infrastructure and workforce training, and strong community partnerships will be critical as this new technology continues to develop.