Technology
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The obvious answer is "charge a reasonable price".
Many services like AccuWeather do that, including having a limited free tier for experimentation or niche applications.
The real problem though is that the value of the data isn't just the cost of storing and making it available - in many cases its strategic. This is why e.g. the Google Maps API gives you pre-rendered map tiles and curated results, but you don't get access to the raw data.
I think that's reasonable, which is why I'm wondering how "all APIs must be free" works.