ReportWire

Tag: Data management and storage

  • As electricity costs rise, everyone wants data centers to pick up their tab. But how?

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    HARRISBURG, Pa. — As outrage spreads over energy-hungry data centers, politicians from President Donald Trump to local lawmakers have found rare bipartisan agreement over insisting that tech companies — and not regular people — must foot the bill for the exorbitant amount of electricity required for artificial intelligence.

    But that might be where the agreement ends.

    The price of powering data centers has become deeply intertwined with concerns over the cost of living, a dominant issue in the upcoming midterm elections that will determine control of Congress and governors’ offices.

    Some efforts to address the challenge may be coming too late, with energy costs on the rise. And even though tech giants are pledging to pay their “fair share,” there’s little consensus on what that means.

    “‘Fair share’ is a pretty squishy term, and so it’s something that the industry likes to say because ‘fair’ can mean different things to different people,” said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University.

    It’s a shift from last year, when states worked to woo massive data center projects and Trump directed his administration to do everything it could to get them electricity. Now there’s a backlash as towns fight data center projects and some utilities’ electricity bills have risen quickly.

    Anger over the issue has already had electoral consequences, with Democrats ousting two Republicans from Georgia’s utility regulatory commission in November.

    “Voters are already connecting the experience of these facilities with their electricity costs and they’re going to increasingly want to know how government is going to navigate that,” said Christopher Borick, a pollster and director of the Muhlenberg College Institute of Public Opinion.

    Data centers are sprouting across the U.S., as tech giants scramble to meet worldwide demand for chatbots and other generative AI products that require large amounts of computing power to train and operate.

    The buildings look like giant warehouses, some dwarfing the footprints of factories and stadiums. Some need more power than a small city, more than any utility has ever supplied to a single user, setting off a race to build more power plants.

    The demand for electricity can have a ripple effect that raises prices for everyone else. For example, if utilities build more power plants or transmission lines to serve them, the cost can be spread across all ratepayers.

    Concerns have dovetailed with broader questions about the cost of living, as well as fears about the powerful influence of tech companies and the impact of artificial intelligence.

    Trump continues to embrace artificial intelligence as a top economic and national security priority, although he seemed to acknowledge the backlash last month by posting on social media that data centers “must ‘pay their own way.’”

    At other times, he has brushed concerns aside, declaring that tech giants are building their own power plants, and Energy Secretary Chris Wright contends that data centers don’t inflate electricity bills — disputing what consumer advocates and independent analysts say.

    Some states and utilities have started to identify ways to get data centers to pay for their costs.

    They’ve required tech companies to buy electricity in long-term contracts, pay for the power plants and transmission upgrades they need and make big down payments in case they go belly-up or decide later they don’t need as much electricity.

    But it might be more complicated than that. Those rules can’t fix the short-term problem of ravenous demand for electricity that is outpacing the speed of power plant construction, analysts say.

    “What do you do when Big Tech, because of the very profitable nature of these data centers, can simply outbid grandma for power in the short run?” Abe Silverman, a former utility regulatory lawyer and an energy researcher at Johns Hopkins University. “That is, I think, going to be the real challenge.”

    Some consumer advocates say tech companies’ fair share should also include the rising cost of electricity, grid equipment or natural gas that’s driven by their demand.

    In Oregon, which passed a law to protect smaller ratepayers from data centers’ power costs, a consumer advocacy group is jousting with the state’s largest utility, Portland General Electric, over its plan on how to do that.

    Meanwhile, consumer advocates in various states — including Indiana, Georgia and Missouri — are warning that utilities could foist the cost of data center-driven buildouts onto regular ratepayers there.

    Utilities have pledged to ensure electric rates are fair. But in some places it may be too late.

    For instance, in the mid-Atlantic grid territory from New Jersey to Illinois, consumer advocates and analysts have pegged billions of dollars in rate increases hitting the bills of regular Americans on data center demand.

    Legislation, meanwhile, is flooding into Congress and statehouses to regulate data centers.

    Democrats’ bills in Congress await Republican cosponsors, while lawmakers in a number of states are floating moratoriums on new data centers, drafting rules for regulators to shield regular ratepayers and targeting data center tax breaks and utility profits.

    Governors — including some who worked to recruit data centers to their states — are increasingly talking tough.

    Arizona Gov. Katie Hobbs, a Democrat running for reelection this year, wants to impose a penny-a-gallon water fee on data centers and get rid of the sales tax exemption there that most states offer data centers. She called it a $38 million “corporate handout.”

    “It’s time we make the booming data center industry work for the people of our state, rather than the other way around,” she said in her state-of-the-state address.

    Energy costs are projected to keep rising in 2026.

    Republicans in Washington are pointing the finger at liberal state energy policies that favor renewable energy, suggesting they have driven up transmission costs and frayed supply by blocking fossil fuels.

    “Americans are not paying higher prices because of data centers. There’s a perception there, and I get the perception, but it’s not actually true,” said Wright, Trump’s energy secretary, at a news conference earlier this month.

    The struggle to assign blame was on display last week at a four-hour U.S. House subcommittee hearing with members of the Federal Energy Regulatory Commission.

    Republicans encouraged FERC members to speed up natural gas pipeline construction while Democrats defended renewable energy and urged FERC to limit utility profits and protect residential ratepayers from data center costs.

    FERC’s chair, Laura Swett, told Rep. Greg Landsman, D-Ohio, that she believes data center operators are willing to cover their costs and understand that it’s important to have community support.

    “That’s not been our experience,” Landsman responded, saying projects in his district are getting tax breaks, sidestepping community opposition and costing people money. “Ultimately, I think we have to get to a place where they pay everything.”

    ___

    Follow Marc Levy on X at: https://x.com/timelywriter

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  • Musk vows to put data centers in space, run them on solar power

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    NEW YORK — Elon Musk vowed this week to upend another industry just as he did with cars and rockets — and once again he’s taking on long odds.

    The world’s richest man said he wants to put as many as a million satellites into orbit to form vast, solar-powered data centers in space — a move to allow expanded use of artificial intelligence and chatbots without triggering blackouts and sending utility bills soaring.

    To finance that effort, Musk combined SpaceX with his AI business on Monday and plans a big initial public offering of the combined company.

    “Space-based AI is obviously the only way to scale,” Musk wrote on SpaceX’s website Monday, adding about his solar ambitions, “It’s always sunny in space!”

    But scientists and industry experts say even Musk — who outsmarted Detroit to turn Tesla into the world’s most valuable automaker — faces formidable technical, financial and environmental obstacles.

    Here’s a look:

    Capturing the sun’s energy from space to run chatbots and other AI tools would ease pressure on power grids and cut demand for sprawling computing warehouses that are consuming farms and forests and vast amounts of water to cool.

    But space presents its own set of problems.

    Data centers generate enormous heat. Space seems to offer a solution because it is cold. But it is also a vacuum, trapping heat inside objects in the same way that a Thermos keeps coffee hot using double walls with no air between them.

    “An uncooled computer chip in space would overheat and melt much faster than one on Earth,” said Josep Jornet, a computer and electrical engineering professor at Northeastern University.

    One fix is to build giant radiator panels that glow in infrared light to push the heat “out into the dark void,” says Jornet, noting that the technology has worked on a small scale, including on the International Space Station. But for Musk’s data centers, he says, it would require an array of “massive, fragile structures that have never been built before.”

    Then there is space junk.

    A single malfunctioning satellite breaking down or losing orbit could trigger a cascade of collisions, potentially disrupting emergency communications, weather forecasting and other services.

    Musk noted in a recent regulatory filing that he has had only one “low-velocity debris generating event” in seven years running Starlink, his satellite communications network. Starlink has operated about 10,000 satellites — but that’s a fraction of the million or so he now plans to put in space.

    “We could reach a tipping point where the chance of collision is going to be too great,” said University at Buffalo’s John Crassidis, a former NASA engineer. “And these objects are going fast — 17,500 miles per hour. There could be very violent collisions.”

    Even without collisions, satellites fail, chips degrade, parts break.

    Special GPU graphics chips used by AI companies, for instance, can become damaged and need to be replaced.

    “On Earth, what you would do is send someone down to the data center,” said Baiju Bhatt, CEO of Aetherflux, a space-based solar energy company. “You replace the server, you replace the GPU, you’d do some surgery on that thing and you’d slide it back in.”

    But no such repair crew exists in orbit, and those GPUs in space could get damaged due to their exposure to high-energy particles from the sun.

    Bhatt says one workaround is to overprovision the satellite with extra chips to replace the ones that fail. But that’s an expensive proposition given they are likely to cost tens of thousands of dollars each, and current Starlink satellites only have a lifespan of about five years.

    Musk is not alone trying to solve these problems.

    A company in Redmond, Washington, called Starcloud, launched a satellite in November carrying a single Nvidia-made AI computer chip to test out how it would fare in space. Google is exploring orbital data centers in a venture it calls Project Suncatcher. And Jeff Bezos’ Blue Origin announced plans in January for a constellation of more than 5,000 satellites to start launching late next year, though its focus has been more on communications than AI.

    Still, Musk has an edge: He’s got rockets.

    Starcloud had to use one of his Falcon rockets to put its chip in space last year. Aetherflux plans to send a set of chips it calls a Galactic Brain to space on a SpaceX rocket later this year. And Google may also need to turn to Musk to get its first two planned prototype satellites off the ground by early next year.

    Pierre Lionnet, a research director at the trade association Eurospace, says Musk routinely charges rivals far more than he charges himself —- as much as $20,000 per kilo of payload versus $2,000 internally.

    He said Musk’s announcements this week signal that he plans to use that advantage to win this new space race.

    “When he says we are going to put these data centers in space, it’s a way of telling the others we will keep these low launch costs for myself,” said Lionnet. “It’s a kind of powerplay.”

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  • Elon Musk combines his rocket and AI businesses before an expected IPO this year

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    NEW YORK — Elon Musk is joining his space exploration and artificial intelligence ventures into a single company before what’s expected to be a massive initial public offering for the business later this year.

    His rocket venture, SpaceX, announced on Monday that it had bought xAI in an effort to help the world’s richest man dominate the rocket and artificial intelligence businesses. The deal will combine several of his offerings, including his AI chatbot Grok, his satellite communications company Starlink, and his social media company X.

    Musk has talked repeatedly about the need to speed development of technology that will allow data centers to operate in space. He believes that will help overcome the problem of huge costs in electricity and other resources in building and running AI systems on Earth.

    It’s a goal that Musk suggested in his announcement of the deal could become easier to reach with a combined company.

    “In the long term, space-based AI is obviously the only way to scale,” Musk wrote on SpaceX’s website Monday, then added in reference to solar power, “It’s always sunny in space!”

    Musk said in his announcement he estimates “that within 2 to 3 years, the lowest cost way to generate AI compute will be in space.”

    SpaceX will be competing in that realm with Google, which is working on a research project called Project Suncatcher that would equip solar-powered satellites with AI computer chips, with a prototype that could launch as soon as next year.

    But Musk’s prediction of a near future of space-based AI supercomputers is not shared by many other companies building data centers, including Microsoft.

    “I’ll be surprised if people move from land to low-Earth orbit,” Microsoft’s president, Brad Smith, told The Associated Press last month, when asked about the alternatives to building data centers in the U.S. amid rising community opposition.

    Musk is already facing stiff competition in artificial intelligence, where he’s been scrambling to compete against rivals such as OpenAI, which is also working toward an IPO. Musk’s dislike of OpenAI, which he helped to found more than a decade ago, is part of what drove him to start xAI in 2023 and build the ChatGPT alternative he named Grok.

    Musk has equally ambitious plans for Tesla as he tries to pivot a company with shrinking car sales to focus more on self-driving taxis and humanoid robots, driven by artificial intelligence.

    Tesla recently announced a $2 billion investment in xAI.

    Musk has used his control over multiple companies to combine operations before. Tesla bought SolarCity, a decade ago. And he recently had xAI buy his social media platform X, formerly called Twitter.

    Chatter on Wall Street about the billionaire continuing to meld his many ventures together in a massive Musk Inc. has taken off in recent months, with some investors speculating that Tesla could combine with SpaceX, too.

    Forbes magazine puts Musk’s net worth at $768 billion. He also owns a brain implant company called Neuralink and a tunnel digging business named the Boring Company.

    Terms of the SpaceX purchase of xAI were not disclosed. Among outside investors in the companies is a fund in which President Donald Trump’s son, Don Jr., is a partner. That firm, 1789 Capital, has made more than $1 billion worth of investments in various Musk companies in the past year, including SpaceX, xAI, and X, according to data provider Pitchbook, though it cashed out of some already.

    While pursuing space data centers, xAI is also moving rapidly to expand on Earth. Mississippi officials last month announced that the company is set to spend $20 billion to build a data center near the state’s border with Tennessee.

    The data center, called MACROHARDRR, a likely pun on Microsoft’s name, will be its third one in the greater Memphis area.

    Musk is also hoping the combined company can eventually help reach another goal he has long talked about — the need to colonize other planets in case there is a natural disaster or human-made disaster on Earth.

    When speaking at the World Economic Forum in Davos last week, Musk mused about humanity being a “tiny candle in a vast darkness, a tiny candle of consciousness that could easily go out.”

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  • A chatbot entirely powered by humans, not artificial intelligence? This Chilean community shows why

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    About 50 residents of a community outside Chile’s capital spent Saturday trying their best to power an entirely human-operated chatbot that could answer questions and make silly pictures on command, in a message to highlight the environmental toll of artificial intelligence data centers in the region.

    Organizers say the 12-hour project fielded more than 25,000 requests from around the world.

    Asking the Quili.AI website to generate an image of a “sloth playing in the snow” didn’t instantly produce an output, as ChatGPT or Google’s Gemini would. Instead, someone responded in Spanish to wait a few moments and reminded the user that a human was responding.

    Then came a drawing about 10 minutes later: a penciled sketch of a cute and cartoonish sloth in a pile of snowballs, with its claws clutching one and about to throw it.

    “The goal is to highlight the hidden water footprint behind AI prompting and encourage more responsible use,” said a statement from organizer Lorena Antiman of the environmental group Corporación NGEN.

    The answers came from a rotating crew of volunteers working on laptops in a community center in Quilicura, a municipality at the urban edge of Santiago that has become a data center hub. Asked by an Associated Press reporter for the identity of who made the sloth drawing, the website responded that it was a local youth who’s helping with illustrations.

    The website responded quickly to questions that drew on residents’ cultural knowledge, like how to make Chilean sopaipillas, a fried pastry. When they didn’t know the answer, they walked around the room to see if someone else did.

    “Quili.AI isn’t about always having an instant answer. It’s about recognizing that not every question needs one,” Antiman said. “When residents don’t know something, they can say so, share perspective, or respond with curiosity rather than certainty.”

    She said it’s not designed to reject the “incredibly valuable” uses of AI but to think more about the impacts of so much “casual prompting” on water-stressed places like Quilicura.

    The backdrop behind the campaign is a debate, in Chile and elsewhere, about the heavy costs of AI usage. Data center computer chips running AI systems require huge amounts of electricity and some also use large volumes of water for cooling, with usage varying depending on location and type of equipment.

    Cloud computing giants Amazon, Google and Microsoft are among a number of companies that have built or planned data centers in the Santiago region.

    Google has argued that the Quilicura data center it switched on in 2015 is the “most energy efficient in Latin America” and has highlighted its investment in wetlands restoration and irrigation projects in the surrounding Maipo River basin. But it faced a court challenge over another project near Santiago over water usage concerns.

    Chile has faced a decade of severe drought, which experts say contributed to the spread of recent deadly wildfires.

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  • How the White House and governors want to fix AI-driven power shortages and price spikes

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    The White House and a bipartisan group of governors are pressuring the operator of the mid-Atlantic power grid to take urgent steps to boost energy supply and curb price hikes, holding a Friday event aimed at addressing a rising concern among voters about the enormous amount of power used for artificial intelligence ahead of elections later this year.

    The White House said its National Energy Dominance Council and the governors of several states, including Pennsylvania, Ohio and Virginia, want to try to compel PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants,

    The Trump administration and governors will sign a statement of principles toward that end Friday. The plan was first reported by Bloomberg.

    “Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region,” said Taylor Rogers, a White House spokeswoman.

    Pennsylvania Gov. Josh Shapiro is expected to be at the White House, a person familiar with Shapiro’s plans said, speaking on condition of anonymity ahead of the announcement. Shapiro, a Democrat, made his participation in Friday’s event contingent on including a provision to extend a limit on wholesale electricity price increases for the region’s consumers, the person said.

    But the operator of the grid won’t be there. “PJM was not invited. Therefore we would not attend,” said spokesperson Jeff Shields.

    It was not immediately clear whether President Donald Trump would attend the event, which was not listed on his public schedule.

    Trump and the governors are under pressure to insulate consumers and businesses alike from the costs of feeding Big Tech’s energy-hungry data centers. Meanwhile, more Americans are falling behind on their electricity bills.

    Consumer advocates say ratepayers in the mid-Atlantic electricity grid — which encompasses all or parts of 13 states stretching from New Jersey to Illinois, as well as Washington, D.C. — are already paying billions of dollars in higher bills to underwrite the cost to supply power to data centers, some of them built, some not.

    However, they also say that the billions of dollars that consumers are paying isn’t resulting in the construction of new power plants necessary to meet the rising demand.

    Pivotal contests in November will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill for the data centers that underpin the explosion in demand for artificial intelligence. In parts of the country, data centers are coming online faster than power plants can be built and connected to the grid.

    Electricity costs were a key issue in last year’s elections for governor in New Jersey and Virginia, a data center hotspot, and in Georgia, where Democrats ousted two Republican incumbents for seats on the state’s utility regulatory commission. Voters in New Jersey, Virginia, California and New York City all cited economic concerns as the top issue, as Democrats and Republicans gird for a debate over affordability in the intensifying midterm battle to control Congress.

    Gas and electric utilities sought or won rate increases of more that $34 billion in the first three quarters of 2025, consumer advocacy organization PowerLines reported. That was more than double the same period a year earlier.

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  • How the White House and governors want to fix AI-driven power shortages and price spikes

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    The White House and a bipartisan group of governors are pressuring the operator of the mid-Atlantic power grid to take urgent steps to boost energy supply and curb price hikes, holding a Friday event aimed at addressing a rising concern among voters about the enormous amount of power used for artificial intelligence ahead of elections later this year.

    The White House said its National Energy Dominance Council and the governors of several states, including Pennsylvania, Ohio and Virginia, want to try to compel PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants,

    The Trump administration and governors will sign a statement of principles toward that end Friday. The plan was first reported by Bloomberg.

    “Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region,” said Taylor Rogers, a White House spokeswoman.

    Pennsylvania Gov. Josh Shapiro is expected to be at the White House, a person familiar with Shapiro’s plans said, speaking on condition of anonymity ahead of the announcement. Shapiro, a Democrat, made his participation in Friday’s event contingent on including a provision to extend a limit on wholesale electricity price increases for the region’s consumers, the person said.

    But the operator of the grid won’t be there. “PJM was not invited. Therefore we would not attend,” said spokesperson Jeff Shields.

    It was not immediately clear whether President Donald Trump would attend the event, which was not listed on his public schedule.

    Trump and the governors are under pressure to insulate consumers and businesses alike from the costs of feeding Big Tech’s energy-hungry data centers. Meanwhile, more Americans are falling behind on their electricity bills.

    Consumer advocates say ratepayers in the mid-Atlantic electricity grid — which encompasses all or parts of 13 states stretching from New Jersey to Illinois, as well as Washington, D.C. — are already paying billions of dollars in higher bills to underwrite the cost to supply power to data centers, some of them built, some not.

    However, they also say that the billions of dollars that consumers are paying isn’t resulting in the construction of new power plants necessary to meet the rising demand.

    Pivotal contests in November will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill for the data centers that underpin the explosion in demand for artificial intelligence. In parts of the country, data centers are coming online faster than power plants can be built and connected to the grid.

    Electricity costs were a key issue in last year’s elections for governor in New Jersey and Virginia, a data center hotspot, and in Georgia, where Democrats ousted two Republican incumbents for seats on the state’s utility regulatory commission. Voters in New Jersey, Virginia, California and New York City all cited economic concerns as the top issue, as Democrats and Republicans gird for a debate over affordability in the intensifying midterm battle to control Congress.

    Gas and electric utilities sought or won rate increases of more that $34 billion in the first three quarters of 2025, consumer advocacy organization PowerLines reported. That was more than double the same period a year earlier.

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  • Meta signs three nuclear power deals to help support its AI data centers

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    Facebook parent Meta has reached nuclear power deals with three companies as it continues to look for electricity sources for its artificial intelligence data centers.

    Meta struck agreements with TerraPower, Oklo and Vistra for nuclear power for its Prometheus AI data center that is being built in New Albany, Ohio. Meta announced Prometheus, which will be a 1-gigawatt cluster spanning across multiple data center buildings, in July. It’s anticipated to come online this year.

    Financial terms of the deals with TerraPower, Oklo and Vistra were not disclosed.

    The Mark Zuckerberg-led Meta said in a statement on Friday that the three deals will support up to 6.6 gigawatts of new and existing clean energy by 2035.

    “These projects add reliable and firm power to the grid, reinforce America’s nuclear supply chain, and support new and existing jobs to build and operate American power plants,” the company said.

    Meta said its agreement with TerraPower will provide funding that supports the development of two new Natrium units capable of generating up to 690 megawatts of firm power with delivery as early as 2032. The deal also provides Meta with rights for energy from up to six other Natrium units capable of producing 2.1 gigawatts and targeted for delivery by 2035.

    Meta will also buy more than 2.1 gigawatts of energy from two operating Vistra nuclear power plants in Ohio, in addition to the energy from expansions at the two Ohio plants and a third Vistra plant in Pennsylvania.

    The deal with Oklo, which counts OpenAI’s Sam Altman as one of its largest investors, will help to develop a 1.2 gigawatt power campus in Pike County, Ohio to support Meta’s data centers in the region.

    The nuclear power agreements come after Meta announced in June that it reached a 20-year deal with Constellation Energy.

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  • Elon Musk’s xAI to build $20 billion data center in Mississippi

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    Elon Musk’s AI company, xAI, plans to spend $20 billion on a data center in Southaven, Mississippi

    JACKSON, Miss. — Elon Musk’s artificial intelligence company xAI is set to spend $20 billion to build a data center in Southaven, Mississippi, Gov. Tate Reeves announced Thursday, calling it the largest private investment in the state’s history.

    The data center, called MACROHARDRR, is being built in Mississippi’s DeSoto County near Memphis, Tennessee. It will be the company’s third data center in the greater Memphis area. xAI CFO Anthony Armstrong said the cluster of data centers will house “the world’s largest supercomputer” with 2 gigawatts of computing power.

    The announcement comes as xAI faces scrutiny over its data center projects in the Memphis area. The NAACP and the Southern Environmental Law Center have raised concerns over air pollution generated by xAI’s supercomputer facility located near predominantly Black communities in Memphis.

    A petition by the Safe and Sound Coalition, a Southaven group opposing xAI’s developments, calls for shutting down xAI’s operations in the area and has received more than 900 signatures as of Thursday afternoon.

    xAI did not immediately respond when asked for comment about environmental concerns.

    A fact sheet released by the Mississippi governor’s office said environmental responsibility is a “core commitment” for xAI.

    During the announcement, Reeves personally thanked Musk. Reeves predicted the investment would bring hundreds of permanent jobs to the community, thousands of indirect subcontracting jobs, and tax revenue to support public services.

    Under the incentives for data centers passed in 2024, the state will waive all sales, corporate income and franchise taxes on the xAI development. Saving sales taxes on the computing power that xAI is purchasing would likely be worth a substantial amount of money, but the Mississippi Development Authority did not immediately respond to The Associated Press’ questions about how much tax revenue Mississippi will give up.

    DeSoto County and the city of Southaven have also agreed to allow substantially reduced property taxes.

    xAI is expected to begin data center operations in Southaven next month.

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  • Big Tech’s fast-expanding plans for data centers run into stiff community opposition

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    SPRING CITY, Pa. — Tech companies and developers looking to plunge billions of dollars into ever-bigger data centers to power artificial intelligence and cloud computing are increasingly losing fights in communities where people don’t want to live next to them, or even near them.

    Communities across the United States are reading about — and learning from — each other’s battles against data center proposals that are fast multiplying in number and size to meet steep demand as developers branch out in search of faster connections to power sources.

    In many cases, municipal boards are trying to figure out whether energy- and water-hungry data centers fit into their zoning framework. Some have entertained waivers or tried to write new ordinances. Some don’t have zoning.

    But as more people hear about a data center coming to their community, once-sleepy municipal board meetings in farming towns and growing suburbs now feature crowded rooms of angry residents pressuring local officials to reject the requests.

    “Would you want this built in your backyard?” Larry Shank asked supervisors last month in Pennsylvania’s East Vincent Township. “Because that’s where it’s literally going, is in my backyard.”

    A growing number of proposals are going down in defeat, sounding alarms across the data center constellation of Big Tech firms, real estate developers, electric utilities, labor unions and more.

    Andy Cvengros, who helps lead the data center practice at commercial real estate giant JLL, counted seven or eight deals he’d worked on in recent months that saw opponents going door-to-door, handing out shirts or putting signs in people’s yards.

    “It’s becoming a huge problem,” Cvengros said.

    Data Center Watch, a project of 10a Labs, an AI security consultancy, said it is seeing a sharp escalation in community, political and regulatory disruptions to data center development.

    Between April and June alone, its latest reporting period, it counted 20 proposals valued at $98 billion in 11 states that were blocked or delayed amid local opposition and state-level pushback. That amounts to two-thirds of the projects it was tracking.

    Some environmental and consumer advocacy groups say they’re fielding calls every day, and are working to educate communities on how to protect themselves.

    “I’ve been doing this work for 16 years, worked on hundreds of campaigns I’d guess, and this by far is the biggest kind of local pushback I’ve ever seen here in Indiana,” said Bryce Gustafson of the Indianapolis-based Citizens Action Coalition.

    In Indiana alone, Gustafson counted more than a dozen projects that lost rezoning petitions.

    For some people angry over steep increases in electric bills, their patience is thin for data centers that could bring still-higher increases.

    Losing open space, farmland, forest or rural character is a big concern. So is the damage to quality of life, property values or health by on-site diesel generators kicking on or the constant hum of servers. Others worry that wells and aquifers could run dry.

    Lawsuits are flying — both ways — over whether local governments violated their own rules.

    Big Tech firms Microsoft, Google, Amazon and Facebook — which are collectively spending hundreds of billions of dollars on data centers across the globe — didn’t answer Associated Press questions about the effect of community pushback.

    Microsoft, however, has acknowledged the difficulties. In an October securities filing, it listed its operational risks as including “community opposition, local moratoriums, and hyper-local dissent that may impede or delay infrastructure development.”

    Even with high-level support from state and federal governments, the pushback is having an impact.

    Maxx Kossof, vice president of investment at Chicago-based developer The Missner Group, said developers worried about losing a zoning fight are considering selling properties once they secure a power source — a highly sought-after commodity that makes a proposal far more viable and valuable.

    “You might as well take chips off the table,” Kossof said. “The thing is you could have power to a site and it’s futile because you might not get the zoning. You might not get the community support.”

    Some in the industry are frustrated, saying opponents are spreading falsehoods about data centers — such as polluting water and air — and are difficult to overcome.

    Still, data center allies say they are urging developers to engage with the public earlier in the process, emphasize economic benefits, sow good will by supporting community initiatives and talk up efforts to conserve water and power and protect ratepayers.

    “It’s definitely a discussion that the industry is having internally about, ‘Hey, how do we do a better job of community engagement?’” said Dan Diorio of the Data Center Coalition, a trade association that includes Big Tech firms and developers.

    Winning over local officials, however, hasn’t translated to winning over residents.

    Developers pulled a project off an October agenda in the Charlotte suburb of Matthews, North Carolina, after Mayor John Higdon said he informed them it faced unanimous defeat.

    The project would have funded half the city’s budget and developers promised environmentally friendly features. But town meetings overflowed, and emails, texts and phone calls were overwhelmingly opposed, “999 to one against,” Higdon said.

    Had council approved it, “every person that voted for it would no longer be in office,” the mayor said. “That’s for sure.”

    In Hermantown, a suburb of Duluth, Minnesota, a proposed data center campus several times larger than the Mall of America is on hold amid challenges over whether the city’s environmental review was adequate.

    Residents found each other through social media and, from there, learned to organize, protest, door-knock and get their message out.

    They say they felt betrayed and lied to when they discovered that state, county, city and utility officials knew about the proposal for an entire year before the city — responding to a public records request filed by the Minnesota Center for Environmental Advocacy — released internal emails that confirmed it.

    “It’s the secrecy. The secrecy just drives people crazy,” said Jonathan Thornton, a realtor who lives across a road from the site.

    Documents revealing the extent of the project emerged days before a city rezoning vote in October. Mortenson, which is developing it for a Fortune 50 company that it hasn’t named, says it is considering changes based on public feedback and that “more engagement with the community is appropriate.”

    Rebecca Gramdorf found out about it from a Duluth newspaper article, and immediately worried that it would spell the end of her six-acre vegetable farm.

    She found other opponents online, ordered 100 yard signs and prepared for a struggle.

    “I don’t think this fight is over at all,” Gramdorf said.

    ___

    Follow Marc Levy on X at https://x.com/timelywriter.

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  • Surging silver and gold slide after CME raises margin requirements

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    Silver and gold futures are falling sharply after the Chicago Mercantile Exchange, one of the world’s largest trading floors for commodities, required traders to put up more cash to invest in precious metals

    NEW YORK — Silver and gold futures fell sharply Monday after the Chicago Mercantile Exchange, one of the world’s largest trading floors for commodities, asked traders to put up more cash to make bets on precious metals with prices surging this year.

    This year, gold futures are up 65% and silver has more than doubled.

    The CME raised margin requirements for gold, silver and other metals in a notice posted to the exchange’s website Friday. These notices require traders to put up more cash on their bets in order to insure against the possibility that the trader will default when they take delivery of the contract.

    Exchanges sometimes boost margin requirements when a commodity or other security goes on a significant run. In its notice, the CME said it was raising margin requirements “per the normal review of market volatility.”

    Silver futures tumbled 8% early Monday while gold slid 5%

    Silver prices have skyrocketed this year, topping records dating back to the early 1980s when traders tried and failed to corner the silver market. Supplies have dwindled, with production at major mines slowing. At the same time there’s been an increased industrial need for silver for solar panels as well as data centers.

    Silver futures were roughly $30 an ounce at the beginning of 2025, and briefly touched $80 an ounce before the CME’s announcement.

    Gold futures have risen due in part to geopolitical uncertainty and fears that a bubble is forming in some stock markets. Silver is sometimes referred to among investors as the “poor man’s gold” because it trades in similar patterns as gold for a fraction of the price. But unlike gold, silver has more industrial applications so it tends to more volatile and more exposed to economic cycles.

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  • Sure, the newspaper informed. But as it fades, those who used it for other things must adjust, too

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    The sun would rise over the Rockies, and Robin Gammons would run to the front porch to grab the morning paper before school.

    She wanted the comics and her dad wanted sports, but the Montana Standard meant more than their daily race to grab “Calvin and Hobbes” or baseball scores. When one of the three kids made honor roll, won a basketball game or dressed a freshly slain bison for the History Club, appearing in the Standard’s pages made the achievement feel more real. Robin became an artist with a one-woman show at a downtown gallery and the front-page article went on the fridge, too. Five years later, the yellowing article is still there.

    The Montana Standard slashed print circulation to three days a week two years ago, cutting back the expense of printing like 1,200 U.S. newspapers over the past two decades. About 3,500 papers closed over the same time. An average of two a week have shut this year.

    That slow fade, it turns out, means more than changing news habits. It speaks directly to the newspaper’s presence in our lives — not just in terms of the information printed upon it, but in its identity as a physical object with many other uses.

    “You can pass it on. You can keep it. And then, of course, there’s all the fun things,” says Diane DeBlois, one of the founders of the Ephemera Society of America, a group of scholars, researchers, dealers and collectors who focus on what they call “precious primary source information.”

    “Newspapers wrapped fish. They washed windows. They appeared in outhouses,” she says. “And — free toilet paper.”

    The downward lurch in the media business has changed American democracy over the last two decades — some think for better, many for worse. What’s indisputable: The gradual dwindling of the printed paper — the item that so many millions read to inform themselves and then repurposed into household workflows — has quietly altered the texture of daily life.

    People used to catch up on the world, then save their precious memories, protect their floors and furniture, wrap gifts, line pet cages and light fires. In Butte, in San Antonio, Texas, in much of New Jersey and worldwide, lives without the printed paper are just a tiny bit different.

    For newspaper publishers, the expense of printing is just too high in an industry that’s under strain in an online society. For ordinary people, the physical paper is joining the pay phone, the cassette tape, the answering machine, the bank check, the sound of the internal combustion engine and the ivory-white pair of women’s gloves as objects whose disappearance marks the passage of time.

    “Very hard to see it while it’s happening, much easier to see things like that in even modest retrospect,” says Marilyn Nissenson, co-author of “Going Going Gone: Vanishing Americana.” “Young women were going to work and they wore them for a while and then one day they looked at them and thought, ‘This is ludicrous.’ That was a small but telling icon for a much larger social change.”

    Nick Mathews thinks a lot about newspapers. Both of his parents worked at the Pekin (Illinois) Daily Times. He went on to become sports editor of the Houston Chronicle and, now, an assistant professor at the University of Missouri’s School of Journalism.

    “I have fond memories of my parents using newspapers to wrap presents,” he says. “In my family, you always knew that the gift was from my parents because of what it was wrapped in.”

    In Houston, he recently recalled, the Chronicle reliably sold out when the Astros, Rockets or Texas won a championship because so many people wanted the paper as a keepsake.

    Four years ago, Mathews interviewed 19 people in Caroline County, Virginia, about the 2018 shuttering of the Caroline Progress, a 99-year-old weekly paper that was shuttered months before its 100th anniversary.

    In “Print Imprint: The Connection Between the Physical Newspaper and the Self,” published in the Journal of Communication Inquiry, wistful Virginians remember their senior high school portrait and their daughter’s picture in a wedding dress appearing in the Progress. Plus, one told Mathews, “My fingers are too clean now. I feel sad without ink smudges.”

    Flush with cash from Omahans who invested years ago with local boy Warren Buffett, Nebraska Wildlife Rehab is a well-equipped center for migratory waterfowl, wading birds, reptiles, foxes, bobcats, coyotes, mink and beaver.

    “We get over 8,000 animals every year and we use that newspaper for almost all of those animals,” Executive Director Laura Stastny says.

    Getting old newspapers has never been a problem in this neighborly Midwestern city. Yet Stastny frets about the electronic future.

    “We do pretty well now,” she says. “If we lost that source and had to use something else or had to purchase something, that, with the available options that we have now, would cost us more than $10,000 a year easily.”

    That would be nearly 1% of the budget, Stastny says, but “I’ve never been in a position to be without them, so I might be shocked with a higher dollar figure.”

    Until 1974, the Omaha World-Herald printed a morning edition and two afternoon ones, including a late-afternoon Wall Street Edition with closing prices.

    “Afternoon major-league baseball was still standard then, so I got to gorge on both baseball and stock market facts,” an 85-year-old Buffett told the World-Herald in 2013, By then, he had become the world’s most famous investor and the paper’s owner.

    The World-Herald ended its second afternoon edition in 2016 and Buffett left the newspaper business five years ago. Fewer than 60,000 households take the paper today, according to Northwestern University’s Medill School of Journalism, down from nearly more than 190,000 in 2005, or about one per household.

    Few places symbolize the move from print to digital more than Akalla, a district of Stockholm where the ST01 data center sits at a site once occupied by the factory that prints Sweden main newspaper, Kaun says.

    “They have less and less machines, and instead the building is taken over more and more by this co-location data center,” she says.

    Data centers use huge amounts of energy, of course, and the environmental benefit of using less printing paper is also offset by the enormous popularity of online shopping.

    “You will see a decline in printed papers, but there is a huge increase in packaging,” says Cecilia Alcoreza, manager, of forest sector transformation for the World Wildlife Fund.

    The Atlanta Journal-Constitution announced in August that it would stop providing a print edition at year’s end and go completely digital, making Atlanta the largest U.S. metro area without a printed daily newspaper.

    The habit of following the news — of being informed about the world — can’t be divorced from the existence of print, says Anne Kaun, professor of media and communication studies at Södertörn University in Stockholm.

    Children who grew up in homes with printed newspapers and magazines randomly came across news and socialized into a news-reading habit, Kaun observed. With cell phones, that doesn’t happen.

    “I do think it meaningfully changes how we relate to each other, how we relate to things like the news. It is reshaping attention spans and communications,” says Sarah Wasserman, a cultural critic and assistant dean at Dartmouth College in New Hampshire who specializes in changing forms of communication.

    “These things will always continue to exist in certain spheres and certain pockets and certain class niches,” she says. “But I do think they’re fading.”

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  • Virginia offshore wind developer sues over Trump administration order halting projects

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    The developers of a Virginia offshore wind project are asking a federal judge to block a Trump administration order that halted construction of their project, along with four others, over national security concerns

    NORFOLK, Va. — The developers of a Virginia offshore wind project are asking a federal judge to block a Trump administration order that halted construction of their project, along with four others, over national security concerns.

    Dominion Energy Virginia said in its lawsuit filed late Tuesday that the government’s order is “arbitrary and capricious” and unconstitutional. The Richmond-based company is developing Coastal Virginia Offshore Wind, a project it says is essential to meet dramatically growing energy needs driven by dozens of new data centers.

    The Interior Department did not detail the security concerns in blocking the five projects on Monday. In a letter to project developers, Interior’s Bureau of Ocean Energy Management set a 90-day period — and possibly longer — “to determine whether the national security threats posed by this project can be adequately mitigated.”

    The other projects are the Vineyard Wind project under construction in Massachusetts, Revolution Wind in Rhode Island and Connecticut and two projects in New York: Sunrise Wind and Empire Wind. Democratic governors in those states have vowed to fight the order, the latest action by the Trump administration to hobble offshore wind in its push against renewable energy sources.

    Dominion’s project has been under construction since early 2024 and was scheduled to come online early next year, providing enough energy to power about 660,000 homes. The company said the delay was costing it more than $5 million a day in losses solely for the ships used in round-the-clock construction, and that customers or the company would eventually bear the cost.

    Dominion called this week’s order “the latest in a series of irrational agency actions attacking offshore wind and then doubling down when those actions are found unlawful.”

    The Bureau of Ocean Energy Management didn’t immediately respond to an email seeking comment.

    U.S. District Judge Jamar Walker set a hearing for 2 p.m. Monday on Dominion’s request for a temporary restraining order.

    ___

    The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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  • OpenAI and Taiwan’s Foxconn to partner in AI hardware design and manufacturing in the US

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    TAIPEI, Taiwan (AP) — OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure.

    Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday.

    The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have “early access” to evaluate and potentially to purchase them.

    Foxconn has factories in the U.S., including in Wisconsin, Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said.

    The Taiwan contract manufacturer, formally known as Hon Hai Precision Industry Co., has been moving to diversify its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings.

    A sleek Model A EV made by the group’s automaking affiliate Foxtron was on display at Friday’s event.

    “This year, Model A. ‘A’,’ for affordable,” said Jun Seki, chief strategy officer for Foxconn’s EV business.

    The tie-up with OpenAI can also help Taiwan, a self-governed island claimed by China, to build up its own computing resources, said Alexis Bjorlin, a Nvidia vice president.

    “This allows Taiwan’s domain knowledge and key technology data to remain local and ensure data security,” she said.

    “This partnership is a step toward ensuring the core technologies of the AI era are built here,” Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

    OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips.

    But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to “hundreds of billions by 2030.”

    Foxconn’s Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI.

    The Taiwan company’s net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business.

    “We believe the importance of the AI industry is increasing significantly,” Liu said during Foxconn’s earnings call this month.

    “I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer,” said Liu.

    ___

    Chan reported from Hong Kong

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  • OpenAI and Taiwan’s Foxconn to partner in AI hardware design and manufacturing in the US

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    TAIPEI, Taiwan — OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure.

    Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday.

    The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have “early access” to evaluate and potentially to purchase them.

    Foxconn has factories in the U.S., including in Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said.

    The Taiwan contract manufacturer has been moving to diversity its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings.

    “This partnership is a step toward ensuring the core technologies of the AI era are built here,” Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

    OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips.

    But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to “hundreds of billions by 2030.”

    Foxconn’s Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI.

    The Taiwan company’s net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business.

    “We believe the importance of the AI ​​industry is increasing significantly,” Liu said during Foxconn’s earnings call this month.

    “I am very optimistic about the development of AI ​next year, and expect our cooperation with major clients and partners to become even closer,” said Liu.

    ___

    Chan reported from Hong Kong

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  • Artificial intelligence sparks debate at COP30 climate talks in Brazil

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    BELEM, Brazil — At the U.N. climate talks in Brazil, artificial intelligence is being cast as both a hero worthy of praise and a villain that needs policing.

    Tech companies and a handful of countries at the conference known as COP30 are promoting ways AI can help solve global warming, which is driven largely by the burning of fossil fuels like oil, gas and coal. They say the technology has the potential to do many things, from increasing the efficiency of electrical grids and helping farmers predict weather patterns to tracking deep-sea migratory species and designing infrastructure that can withstand extreme weather.

    Climate groups, however, are sounding the alarm about AI’s growing environmental impact, with its surging needs for electricity and water for powering searches and data centers. They say an AI boom without guardrails will only push the world farther off track from goals set by 2015 Paris Agreement to slow global warming.

    “AI right now is a completely unregulated beast around the world,” said Jean Su, energy justice director at the Center for Biological Diversity.

    On the other hand, Adam Elman, director of sustainability at Google, sees AI as “a real enabler” and one that’s already making an impact.

    If both sides agree on anything, it’s that AI is here to stay.

    Michal Nachmany, founder of Climate Policy Radar, which runs AI tools that track issues like national climate plans and funds to help developing countries transition to green energies like solar and wind, said there is “unbelievable interest” in AI at COP30.

    “Everyone is also a little bit scared,” Nachmany said. “The potential is huge and the risks are huge as well.”

    The rise of AI is becoming a more common topic at the United Nations compared to a few years ago, according to Nitin Arora, who leads the Global Innovation Hub for the United Nations Framework Convention on Climate Change, the framework for international climate negotiations.

    The hub was launched at COP26 in Glasgow to promote ideas and solutions that can be deployed at scale, he said. So far, Arora said, those ideas have been dominated by AI.

    The Associated Press counted at least 24 sessions related to AI during the Brazil conference’s first week. They included AI helping neighboring cities share energy, AI-backed forest crime location predictions and a ceremony for the first AI for Climate Action Award — given to an AI project on water scarcity and climate variability in the Southeast Asian nation of Laos.

    Johannes Jacob, a data scientist with the German delegation, said a prototype app he is designing, called NegotiateCOP, can help countries with smaller delegations — like El Salvador, South Africa, Ivory Coast and a few in the Association of Southeast Asian Nations — process hundreds of official COP documents.

    The result is “leveling the playing field in the negotiations,” he said.

    In a panel discussion, representatives from AI giants like Google and Nvidia spoke about how AI can solve issues facing the power sector. Elman with Google stressed the “need to do it responsibly” but declined to comment further.

    Nvidia’s head of sustainability, Josh Parker, called AI the “best resource any of us can have.”

    “AI is so democratizing,” Parker said. “If you think about climate tech, climate change and all the sustainability challenges we’re trying to solve here at COP, which one of those challenges would not be solved better and faster, with more intelligence.”

    Princess Abze Djigma from Burkina Faso called AI a “breakthrough in digitalization” that she believes will be even more critical in the future.

    Bjorn-Soren Gigler, a senior digital and green transformation specialist with the European Commission, agreed but noted AI is “often seen as a double-edge sword” with both huge opportunities and ethical and environmental concerns.

    The training and deploying of AI models rely on power-hungry data centers that contribute to emissions because of the electricity needed. The International Energy Agency has tracked a boom in energy consumption and demand from data centers, especially in the U.S.

    Data centers accounted for around 1.5% of the world’s electricity consumption in 2024, according to the IEA, which found that their electricity consumption has grown by around 12% per year since 2017, more than four times faster than the rate of total electricity consumption.

    The environmental impact from AI, specifically the operations of data centers, also includes the consumption of large amounts of water in water-stressed states, according to Su with the Center for Biological Diversity, who has studied how the data center boom threatens U.S. climate goals.

    She said these operations will increase the national emissions of the U.S., historically the world’s largest polluter.

    Environmental groups at COP30 are pushing for regulations to soften AI’s environmental footprint, such as mandating public interest tests for proposed data centers and 100% on-site renewable energy at them.

    “COP can not only view AI as some type of techno solution, it has to understand the deep climate consequences,” Su said.

    ___

    Associated Press writer Seth Borenstein in Belem, Brazil, contributed to this report.

    ___

    The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org

    ___

    This story was produced as part of the 2025 Climate Change Media Partnership, a journalism fellowship organized by Internews’ Earth Journalism Network and the Stanley Center for Peace and Security.

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  • Future data centers are driving up forecasts for energy demand. States want proof they’ll get built

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    HARRISBURG, Pa. (AP) — The forecasts are eye-popping: utilities saying they’ll need two or three times more electricity within a few years to power massive new data centers that are feeding a fast-growing AI economy.

    But the challenges — some say the impossibility — of building new power plants to meet that demand so quickly has set off alarm bells for lawmakers, policymakers and regulators who wonder if those utility forecasts can be trusted.

    One burning question is whether the forecasts are based on data center projects that may never get built — eliciting concern that regular ratepayers could be stuck with the bill to build unnecessary power plants and grid infrastructure at a cost of billions of dollars.

    The scrutiny comes as analysts warn of the risk of an artificial intelligence investment bubble that’s ballooned tech stock prices and could burst.

    Meanwhile, consumer advocates are finding that ratepayers in some areas — such as the mid-Atlantic electricity grid, which encompasses all or parts of 13 states stretching from New Jersey to Illinois, as well as Washington, D.C. — are already underwriting the cost to supply power to data centers, some of them built, some not.

    “There’s speculation in there,” said Joe Bowring, who heads Monitoring Analytics, the independent market watchdog in the mid-Atlantic grid territory. “Nobody really knows. Nobody has been looking carefully enough at the forecast to know what’s speculative, what’s double-counting, what’s real, what’s not.”

    Suspicions about skyrocketing demand

    There is no standard practice across grids or for utilities to vet such massive projects, and figuring out a solution has become a hot topic, utilities and grid operators say.

    Uncertainty around forecasts is typically traced to a couple of things.

    One concerns developers seeking a grid connection, but whose plans aren’t set in stone or lack the heft — clients, financing or otherwise — to bring the project to completion, industry and regulatory officials say.

    Another is data center developers submitting grid connection requests in various separate utility territories, PJM Interconnection, which operates the mid-Atlantic grid, and Texas lawmakers have found.

    Often, developers, for competitive reasons, won’t tell utilities if or where they’ve submitted other requests for electricity, PJM said. That means a single project could inflate the energy forecasts of multiple utilities.

    The effort to improve forecasts got a high-profile boost in September, when a Federal Energy Regulatory Commission member asked the nation’s grid operators for information on how they determine that a project is not only viable, but will use the electricity it says it needs.

    “Better data, better decision-making, better and faster decisions mean we can get all these projects, all this infrastructure built,” the commissioner, David Rosner, said in an interview.

    The Edison Electric Institute, a trade association of for-profit electric utilities, said it welcomed efforts to improve demand forecasting.

    Real, speculative, or ‘somewhere in between’

    The Data Center Coalition, which represents tech giants like Google and Meta and data center developers, has urged regulators to request more information from utilities on their forecasts and to develop a set of best practices to determine the commercial viability of a data center project.

    The coalition’s vice president of energy, Aaron Tinjum, said improving the accuracy and transparency of forecasts is a “fundamental first step of really meeting this moment” of energy growth.

    “Wherever we go, the question is, ‘Is the (energy) growth real? How can we be so sure?’” Tinjum said. “And we really view commercial readiness verification as one of those important kind of low-hanging opportunities for us to be adopting at this moment.”

    Igal Feibush, the CEO of Pennsylvania Data Center Partners, a data center developer, said utilities are in a “fire drill” as they try to vet a deluge of data center projects all seeking electricity.

    The vast majority, he said, will fall off because many project backers are new to the concept and don’t know what it takes to get a data center built.

    States also are trying to do more to find out what’s in utility forecasts and weed out speculative or duplicative projects.

    In Texas, which is attracting large data center projects, lawmakers still haunted by a blackout during a deadly 2021 winter storm were shocked when told in 2024 by the grid operator, the Electric Reliability Council of Texas, that its peak demand could nearly double by 2030.

    They found that state utility regulators lacked the tools to determine whether that was realistic.

    Texas state Sen. Phil King told a hearing earlier this year that the grid operator, utility regulators and utilities weren’t sure if the power requests “are real or just speculative or somewhere in between.”

    Lawmakers passed legislation sponsored by King, now law, that requires data center developers to disclose whether they have requests for electricity elsewhere in Texas and to set standards for developers to show that they have a substantial financial commitment to a site.

    Electricity bills are rising, too

    PPL Electric Utilities, which delivers power to 1.5 million customers across central and eastern Pennsylvania, projects that data centers will more than triple its peak electricity demand by 2030.

    Vincent Sorgi, president and CEO of PPL Corp., told analysts on an earnings call this month that the data center projects “are real, they are coming fast and furious” and that the “near-term risk of overbuilding generation simply does not exist.”

    The data center projects counted in the forecast are backed by contracts with financial commitments often reaching tens of millions of dollars, PPL said.

    Still, PPL’s projections helped spur a state lawmaker, Rep. Danilo Burgos, to introduce a bill to bolster the authority of state utility regulators to inspect how utilities assemble their energy demand forecasts.

    Ratepayers in Burgos’ Philadelphia district just absorbed an increase in their electricity bills — attributed by the utility, PECO, to the rising cost of wholesale electricity in the mid-Atlantic grid driven primarily by data center demand.

    That’s why ratepayers need more protection to ensure they are benefiting from the higher cost, Burgos said.

    “Once they make their buck, whatever company,” Burgos said, “you don’t see no empathy towards the ratepayers.”

    ___

    Follow Marc Levy at http://twitter.com/timelywriter.

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  • Future data centers are driving up forecasts for energy demand. States want proof they’ll get built

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    HARRISBURG, Pa. — The forecasts are eye-popping: utilities saying they’ll need two or three times more electricity within a few years to power massive new data centers that are feeding a fast-growing AI economy.

    But the challenges — some say the impossibility — of building new power plants to meet that demand so quickly has set off alarm bells for lawmakers, policymakers and regulators who wonder if those utility forecasts can be trusted.

    One burning question is whether the forecasts are based on data center projects that may never get built — eliciting concern that regular ratepayers could be stuck with the bill to build unnecessary power plants and grid infrastructure at a cost of billions of dollars.

    The scrutiny comes as analysts warn of the risk of an artificial intelligence investment bubble that’s ballooned tech stock prices and could burst.

    Meanwhile, consumer advocates are finding that ratepayers in some areas — such as the mid-Atlantic electricity grid, which encompasses all or parts of 13 states stretching from New Jersey to Illinois, as well as Washington, D.C. — are already underwriting the cost to supply power to data centers, some of them built, some not.

    “There’s speculation in there,” said Joe Bowring, who heads Monitoring Analytics, the independent market watchdog in the mid-Atlantic grid territory. “Nobody really knows. Nobody has been looking carefully enough at the forecast to know what’s speculative, what’s double-counting, what’s real, what’s not.”

    There is no standard practice across grids or for utilities to vet such massive projects, and figuring out a solution has become a hot topic, utilities and grid operators say.

    Uncertainty around forecasts is typically traced to a couple of things.

    One concerns developers seeking a grid connection, but whose plans aren’t set in stone or lack the heft — clients, financing or otherwise — to bring the project to completion, industry and regulatory officials say.

    Another is data center developers submitting grid connection requests in various separate utility territories, PJM Interconnection, which operates the mid-Atlantic grid, and Texas lawmakers have found.

    Often, developers, for competitive reasons, won’t tell utilities if or where they’ve submitted other requests for electricity, PJM said. That means a single project could inflate the energy forecasts of multiple utilities.

    The effort to improve forecasts got a high-profile boost in September, when a Federal Energy Regulatory Commission member asked the nation’s grid operators for information on how they determine that a project is not only viable, but will use the electricity it says it needs.

    “Better data, better decision-making, better and faster decisions mean we can get all these projects, all this infrastructure built,” the commissioner, David Rosner, said in an interview.

    The Edison Electric Institute, a trade association of for-profit electric utilities, said it welcomed efforts to improve demand forecasting.

    The Data Center Coalition, which represents tech giants like Google and Meta and data center developers, has urged regulators to request more information from utilities on their forecasts and to develop a set of best practices to determine the commercial viability of a data center project.

    The coalition’s vice president of energy, Aaron Tinjum, said improving the accuracy and transparency of forecasts is a “fundamental first step of really meeting this moment” of energy growth.

    “Wherever we go, the question is, ‘Is the (energy) growth real? How can we be so sure?’” Tinjum said. “And we really view commercial readiness verification as one of those important kind of low-hanging opportunities for us to be adopting at this moment.”

    Igal Feibush, the CEO of Pennsylvania Data Center Partners, a data center developer, said utilities are in a “fire drill” as they try to vet a deluge of data center projects all seeking electricity.

    The vast majority, he said, will fall off because many project backers are new to the concept and don’t know what it takes to get a data center built.

    States also are trying to do more to find out what’s in utility forecasts and weed out speculative or duplicative projects.

    In Texas, which is attracting large data center projects, lawmakers still haunted by a blackout during a deadly 2021 winter storm were shocked when told in 2024 by the grid operator, the Electric Reliability Council of Texas, that its peak demand could nearly double by 2030.

    They found that state utility regulators lacked the tools to determine whether that was realistic.

    Texas state Sen. Phil King told a hearing earlier this year that the grid operator, utility regulators and utilities weren’t sure if the power requests “are real or just speculative or somewhere in between.”

    Lawmakers passed legislation sponsored by King, now law, that requires data center developers to disclose whether they have requests for electricity elsewhere in Texas and to set standards for developers to show that they have a substantial financial commitment to a site.

    PPL Electric Utilities, which delivers power to 1.5 million customers across central and eastern Pennsylvania, projects that data centers will more than triple its peak electricity demand by 2030.

    Vincent Sorgi, president and CEO of PPL Corp., told analysts on an earnings call this month that the data center projects “are real, they are coming fast and furious” and that the “near-term risk of overbuilding generation simply does not exist.”

    The data center projects counted in the forecast are backed by contracts with financial commitments often reaching tens of millions of dollars, PPL said.

    Still, PPL’s projections helped spur a state lawmaker, Rep. Danilo Burgos, to introduce a bill to bolster the authority of state utility regulators to inspect how utilities assemble their energy demand forecasts.

    Ratepayers in Burgos’ Philadelphia district just absorbed an increase in their electricity bills — attributed by the utility, PECO, to the rising cost of wholesale electricity in the mid-Atlantic grid driven primarily by data center demand.

    That’s why ratepayers need more protection to ensure they are benefiting from the higher cost, Burgos said.

    “Once they make their buck, whatever company,” Burgos said, “you don’t see no empathy towards the ratepayers.”

    ___

    Follow Marc Levy at http://twitter.com/timelywriter.

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  • This anti-drone technology is used on the Ukrainian battlefield and in NATO airspace after flyovers

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    AALBORG, Denmark (AP) — In a warehouse more than 1,500 kilometers (900 miles) from Ukraine’s capital, workers in northern Denmark painstakingly piece together anti-drone devices. Some of the devices will be exported to Kyiv in the hopes of jamming Russian technology on the battlefield, while others will be shipped across Europe in efforts to combat mysterious drone intrusions into NATO’s airspace that have the entire continent on edge.

    Two Danish companies whose business was predominantly defense-related now say they have a surge in new clients seeking to use their technology to protect sites like airports, military installations and critical infrastructure, all of which have been targeted by drone flyovers in recent weeks.

    Weibel Scientific’s radar drone detection technology was deployed ahead of a key EU summit earlier this year to Copenhagen Airport, where unidentified drone sightings closed the airspace for hours in September. Counter-drone firm MyDefence, from its warehouse in northern Denmark, builds handheld, wearable radio frequency devices that sever the connection between a drone and its pilot to neutralize the threat.

    So-called “jamming” is restricted and heavily regulated in the European Union, but widespread on the battlefields of Ukraine and has become so extensive there that Russia and Ukraine have started deploying drones tethered by thin fiber-optic cables that don’t rely on radio frequency signals. Russia also is firing attack drones with extra antenna to foil Ukraine’s jamming efforts.

    A spike in drone incursions

    Drone warfare exploded following Russia’s full-scale invasion of Ukraine in 2022. Russia has bombarded Ukraine with drone and missile attacks, striking railways, power facilities and cities across the country. Ukraine, in response, has launched daring strikes deep inside Russia using domestically produced drones.

    But Europe as a whole is now on high alert after the drone flyovers into NATO’s airspace reached an unprecedented scale in September, prompting European leaders to agree to develop a “drone wall” along their borders to better detect, track and intercept drones violating Europe’s airspace. In November, NATO military officials said a new U.S. anti-drone system was deployed to the alliance’s eastern flank.

    Some European officials described the incidents as Moscow testing NATO’s response, which raised questions about how prepared the alliance is against Russia. Key challenges include the ability to detect drones — sometimes mistaken for a bird or plane on radar systems — and take them down cheaply.

    The Kremlin has brushed off allegations that Russia is behind some of the unidentified drone flights in Europe.

    Andreas Graae, assistant professor at the Royal Danish Defense College, said there is a “huge drive” to rapidly deploy counter-drone systems in Europe amid Russia’s aggression.

    “All countries in Europe are struggling to find the right solutions to be prepared for these new drone challenges,” he said. “We don’t have all the things that are needed to actually be good enough to detect drones and have early warning systems.”

    Putting ‘machines before people’

    Founded in 2013, MyDefence makes devices that can be used to protect airports, government buildings and other critical infrastructure, but chief executive Dan Hermansen called the Russia-Ukraine war a “turning point” for his company.

    More than 2,000 units of its wearable “Wingman” detector have been delivered to Ukraine since Russia invaded nearly four years ago.

    “For the past couple of years, we’ve heard in Ukraine that they want to put machines before people” to save lives, Hermansen said.

    MyDefence last year doubled its earnings to roughly $18.7 million compared to 2023.

    Then came the drone flyovers earlier this year. Besides Copenhagen Airport, drones flew over four smaller Danish airports, including two that serve as military bases.

    Hermansen said they were an “eye-opener” for many European countries and prompted a surge of interest in their technology. MyDefence went from the vast majority of its business being defense-related to inquiries from officials representing police forces and critical infrastructure.

    “Seeing suddenly that drone warfare is not just something that happens in Ukraine or on the eastern flank, but basically is something that we need to take care of in a hybrid warfare threat scenario,” he added.

    Radar technology used against drones

    On NATO’s eastern flank, Denmark, Poland and Romania are deploying a new weapons system to defend against drones. The American Merops system, which is small enough to fit in the back of a midsize pickup truck, can identify drones and close in on them using artificial intelligence to navigate when satellite and electronic communications are jammed.

    The aim is to make the border with Russia so well-armed that Moscow’s forces will be deterred from ever contemplating crossing the line from Norway in the north to Turkey in the south, NATO military officials told The Associated Press.

    North of Copenhagen, Weibel Scientific has been making Doppler radar technology since the 1970s. Typically used in tracking radar systems for the aerospace industry, it’s now being applied to drone detection like at Copenhagen Airport.

    The technology can determine the velocity of an object, such as a drone, based on the change in wavelength of a signal being bounced back. Then it’s possible to predict the direction the object is moving, Weibel Scientific chief executive Peter Røpke said.

    “The Ukraine war, and especially how it has evolved over the last couple of years with drone technology, means this type of product is in high demand,” Røpke said.

    Earlier this year, Weibel secured a $76 million deal, which the firm called its “largest order ever.”

    The drone flyovers boosted the demand even higher as discussion around the proposed “drone wall” continued. Røpke said his technology could become a “key component” of any future drone shield.

    ___

    Stefanie Dazio in Berlin contributed to this report.

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  • Anthropic, Microsoft announce new AI data center projects as industry’s construction push continues

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    Artificial intelligence company Anthropic announced a $50 billion investment in computing infrastructure on Wednesday that will include new data centers in Texas and New York.

    Microsoft also on Wednesday announced a new data center under construction in Atlanta, Georgia, describing it as connected to another in Wisconsin to form a “massive supercomputer” running on hundreds of thousands of Nvidia chips to power AI technology.

    The latest deals show that the tech industry is moving forward on huge spending to build energy-hungry AI infrastructure, despite lingering financial concerns about a bubble, environmental considerations and the political effects of fast-rising electricity bills in the communities where the massive buildings are constructed.

    Anthropic, maker of the chatbot Claude, said it is working with London-based Fluidstack to build the new computing facilities to power its AI systems. It didn’t disclose their exact locations or what source of electricity they will need.

    Another company, cryptocurrency mining data center developer TeraWulf, has previously revealed it was working with Fluidstack on Google-backed data center projects in Texas and New York, on the shore of Lake Ontario. TeraWulf declined comment Wednesday.

    A report last month from TD Cowen said that the leading cloud computing providers leased a “staggering” amount of U.S. data center capacity in the third fiscal quarter of this year, amounting to more than 7.4 gigawatts of energy, more than all of last year combined.

    Oracle was securing the most capacity during that time, much of it supporting AI workloads for Anthropic’s chief rival OpenAI, maker of ChatGPT. Google was second and Fluidstack came in third, ahead of Meta, Amazon, CoreWeave and Microsoft.

    Anthropic said its projects will create about 800 permanent jobs and 2,400 construction jobs. It said in a statement that the “scale of this investment is necessary to meet the growing demand for Claude from hundreds of thousands of businesses while keeping our research at the frontier.”

    Microsoft has branded its two-story Atlanta data center as Fairwater 2 and said it will be connected across a “high-speed network” with the original Fairwater complex being built south of Milwaukee, Wisconsin. The company said the facility’s densely packed Nvidia chips will help power Microsoft’s own AI technology, along with OpenAI’s and other AI developers.

    Microsoft was, until earlier this year, OpenAI’s exclusive cloud computing provider before the two companies amended their partnership. OpenAI has since announced more than $1 trillion in infrastructure obligations, much of it tied to its Stargate project with partners Oracle and SoftBank. Microsoft, in turn, spent nearly $35 billion in the July-September quarter on capital expenditures to support its AI and cloud demand, nearly half of that on computer chips.

    Anthropic has made its own computing partnerships with Amazon and, more recently, Google.

    The tech industry’s big spending on computing infrastructure for AI startups that aren’t yet profitable has fueled concerns about an AI investment bubble.

    Investors have closely watched a series of circular deals over recent months between AI developers and the companies building the costly chips and data centers needed to power their AI products. Anthropic said it will continue to “prioritize cost-effective, capital-efficient approaches” to scaling up its business.

    OpenAI had to backtrack last week after its chief financial officer, Sarah Friar, made comments at a tech conference suggesting the U.S. government could help in financing chips needed for data centers. The White House’s top AI official, David Sacks, responded on social media platform X that there “will be no federal bailout for AI” and if one of the leading companies fails, “others will take its place,” though he also added he didn’t think “anyone was actually asking for a bailout.”

    OpenAI CEO Sam Altman later confirmed in a lengthy statement that “we do not have or want government guarantees” for the company’s data centers and also sought to address concerns about whether it will be able to pay for all the infrastructure it has signed up for.

    “We are looking at commitments of about $1.4 trillion over the next 8 years,” Altman wrote. “Obviously this requires continued revenue growth, and each doubling is a lot of work! But we are feeling good about our prospects there.”

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  • Anthropic, Microsoft announce new AI data center projects as industry’s construction push continues

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    Artificial intelligence company Anthropic announced a $50 billion investment in computing infrastructure on Wednesday that will include new data centers in Texas and New York.

    Microsoft also on Wednesday announced a new data center under construction in Atlanta, Georgia, describing it as connected to another in Wisconsin to form a “massive supercomputer” running on hundreds of thousands of Nvidia chips to power AI technology.

    The latest deals show that the tech industry is moving forward on huge spending to build energy-hungry AI infrastructure, despite lingering financial concerns about a bubble, environmental considerations and the political effects of fast-rising electricity bills in the communities where they’re constructed.

    Anthropic, maker of the chatbot Claude, said it is working with London-based Fluidstack to build the new computing facilities to power its AI systems. It didn’t disclose their exact locations or what source of electricity they will need.

    Another company, cryptocurrency mining data center developer TeraWulf, has previously revealed it was working with Fluidstack on Google-backed data center projects in Texas and New York, on the shore of Lake Ontario. TeraWulf declined comment Wednesday.

    A report last month from TD Cowen said that the leading cloud computing providers leased a “staggering” amount of U.S. data center capacity in the third fiscal quarter of this year, amounting to more than 7.4 gigawatts of energy, more than all of last year combined.

    Oracle was securing the most capacity during that time, much of it supporting AI workloads for Anthropic’s chief rival OpenAI, maker of ChatGPT. Google was second and Fluidstack came in third, ahead of Meta, Amazon, CoreWeave and Microsoft.

    Anthropic said its projects will create about 800 permanent jobs and 2,400 construction jobs. It said in a statement that the “scale of this investment is necessary to meet the growing demand for Claude from hundreds of thousands of businesses while keeping our research at the frontier.”

    Microsoft has branded its Atlanta data center as Fairwater 2, after the original Fairwater complex being built near Milwaukee, Wisconsin. The company said it will help power its own technology, along with OpenAI’s and other AI developers. Microsoft was, until earlier this year, OpenAI’s exclusive cloud computing provider before the two companies amended their partnership. OpenAI has since announced more than $1 trillion in infrastructure obligations, much of it tied to its Stargate project with partners Oracle and SoftBank.

    The tech industry’s huge amount of spending on computing infrastructure for AI startups that aren’t yet profitable has fueled concerns about an AI investment bubble.

    Investors have closely watched a series of intertwined deals over recent months between top AI developers such as OpenAI and Anthropic and the companies building the costly computer chips and data centers needed to power their AI products. Anthropic said it will continue to “prioritize cost-effective, capital-efficient approaches” to scaling up its business.

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