The tax revenue produced by data centers is seen by many municipal leaders as an economic-development win, but big questions are being raised about the pressure the facilities will put on the nation's electrical grid and who ultimately will foot the bill.
Sacramento Business Journal’s Post
More Relevant Posts
-
Data Center economic impact vs environmental impact as become a "chicken and egg" conversation, not just limited to Maryland. States like Connecticut, South Carolina, Virginia, and Georgia are starting to question the wisdom of offering tax breaks to attract data centers. Why? Because the massive electricity consumption of these facilities can disrupt clean energy supplies and strain power grids. Details below: 1. Front-Loaded Economic Benefits: Data centers bring significant upfront investments and construction jobs. But once they're built, they don't require many people to operate. This means the long-term job creation is minimal. 2. Tax Incentives vs. Payback Time: States offer substantial tax breaks to lure data centers. However, it takes years, sometimes decades, for the state to recoup these incentives. Is it worth the wait? 3. Rising Power Demand: With the surge in artificial intelligence, data center power demand is expected to increase by 160%, according to Goldman Sachs. This could make it challenging for states to manage their electricity supply sustainably. On the flip side, Maryland is taking a different approach. Governor Wes Moore recently signed the Critical Infrastructure Streamlining Act of 2024, which simplifies regulatory processes to attract more data centers. The goal? To position Maryland as a prime location for tech businesses in the Mid-Atlantic region. So, what's the takeaway? While data centers can boost a state's image and bring initial economic benefits, the long-term environmental impact and the slow return on tax incentives are significant concerns. As professionals in the IT industry, we must weigh these factors carefully. https://lnkd.in/eX7DX3kB #DataCenter #Sustainability #EconomicImpact #itad #itam #sustainability
States Begin to Understand the Cost of Data Centers - Inside Towers
https://insidetowers.com
To view or add a comment, sign in
-
Insightful podcast that cuts through the hype and highlights the relevant issues as we transition to cheaper, cleaner electricity. Keep up the great work Chris!
Data center power demand doesn't just materialize out of nowhere. It's invited, often by local officials looking to increase tax revenues. If VA is looking at a 35% load increase from data centers https://lnkd.in/gz5tKzA3 then their utility customers ought to be demanding that their regulators make sure those costs are paid *by the data center customers* and not by all ratepayers. As we discussed at length with Mike O'Boyle in the current episode of the Energy Transition Show: https://lnkd.in/gjubMkhC Equally, all the journalists out there just amplifying the story about increasing data center demand without this crucial perspective really need to stop and think about whose water they're carrying. And then go learn something about utility regulation.
Pusher of Pixels (@[email protected])
https://dmv.community/
To view or add a comment, sign in
-
Data center power demand doesn't just materialize out of nowhere. It's invited, often by local officials looking to increase tax revenues. If VA is looking at a 35% load increase from data centers https://lnkd.in/gz5tKzA3 then their utility customers ought to be demanding that their regulators make sure those costs are paid *by the data center customers* and not by all ratepayers. As we discussed at length with Mike O'Boyle in the current episode of the Energy Transition Show: https://lnkd.in/gjubMkhC Equally, all the journalists out there just amplifying the story about increasing data center demand without this crucial perspective really need to stop and think about whose water they're carrying. And then go learn something about utility regulation.
Pusher of Pixels (@[email protected])
https://dmv.community/
To view or add a comment, sign in
-
I appreciate Data Center Dynamics including my quote in their coverage of the Digital Gateway campus... rough estimates we're now approaching 100,000,000 sq ft approved in Virginia (my estimate is that's around 30 GW) and another 100,000,000 sq ft (30 GW) are still in the pipeline... data centers are currently using 3 GW, yes only 3 GW, in Dominion Energy's area of Virginia. The total peak load for Dominion's Virginia area is around 23 GW. The utility, the state, and localities are boxing themselves into a corner where they are going to have no other choice but to declare a moratorium on data center development... how is the industry not worried? how are investors not worried? 🤷♀️ https://lnkd.in/eWBwq72H
Prince William County officials vote in favor of PW Digital Gateway data center rezoning in Manassas, Virginia
datacenterdynamics.com
To view or add a comment, sign in
-
Developer of Top Tasks research method. Author of World Wide Waste: How digital is killing the planet and what to do about it.
Backlash to data centers prompts political upset in northern Virginia The tech industry’s drive to dot the Virginia landscape with data centers may have hit a glitch this week in Prince William County. Residents of the state’s second most populous jurisdiction delivered perhaps the biggest upset among a series of surprising election results in Tuesday’s Democratic primary, when political newcomer and data center opponent Deshundra Jefferson knocked off the county’s top elected official, Ann Wheeler. https://lnkd.in/eRQibiuC "The data center industry’s dramatic expansion in Northern Virginia continues — but is hitting snags as its massive demand for electricity strains the region’s power grid and space for the largest complexes begins to run out, according to a new report from real estate firm JLL." https://lnkd.in/eM8h5cXg Pair Of Data Center Megaprojects Suddenly In Jeopardy In The Sector's Most Important Market Over the span of 72 hours last week, the fate of the two largest data center development efforts in the region around the industry's Northern Virginia epicenter suffered serious setbacks that have spurred new concerns for a booming industry already facing a supply crunch. https://lnkd.in/emgh4rDB
Backlash to data centers prompts political upset in northern Virginia
apnews.com
To view or add a comment, sign in
-
The cost of the energy infrastructure to meet this increase in demand is not determined or even planned. The best we have is speculative scenarios in Dominion Virginia’s 2023-2038 Integrated Resource Plan. Those range to over $140 billion in projected additional costs. We are instead creating a massive obligation to plan, finance and build a doubling or tripling the energy system in Virginia. Under current law, this is likely to be included in the rate base and paid by all ratepayers, not the data center industry.
I appreciate Data Center Dynamics including my quote in their coverage of the Digital Gateway campus... rough estimates we're now approaching 100,000,000 sq ft approved in Virginia (my estimate is that's around 30 GW) and another 100,000,000 sq ft (30 GW) are still in the pipeline... data centers are currently using 3 GW, yes only 3 GW, in Dominion Energy's area of Virginia. The total peak load for Dominion's Virginia area is around 23 GW. The utility, the state, and localities are boxing themselves into a corner where they are going to have no other choice but to declare a moratorium on data center development... how is the industry not worried? how are investors not worried? 🤷♀️ https://lnkd.in/eWBwq72H
Prince William County officials vote in favor of PW Digital Gateway data center rezoning in Manassas, Virginia
datacenterdynamics.com
To view or add a comment, sign in
-
The expansion of data centres is driving an exponential growth of online services and the digital capabilities of billions of people around the world. But the energy they require to operate is equal to that of entire countries. Ireland has suffered major power outages as a direct result of data centres consuming more energy than the country can provide and this is not an isolated incident. Data centre operators cannot ignore this imbalance and need to develop more sustainable practices in order to reduce their reliance on national grids. A range of solutions are available to this problem and we have covered many of them in a dedicated roundtable discussion, available here: https://lnkd.in/eSr6rDc9 With thanks to Jessica Traynor and The Guardian for this excellent feature. https://lnkd.in/gx-3wf5i
Power grab: the hidden costs of Ireland’s datacentre boom
theguardian.com
To view or add a comment, sign in
-
Energy-as-a-Service (EaaS) | Microgrids | AlphaStruxure - A Schneider Electric & Carlyle Group Company
It’s true nationwide, and it’s true in Virginia. Utility power generation and transmission capacity problems are limiting data center development, and, increasingly, there is a policy push towards requiring data centers to use onsite microgrids: “No new data centers would be permitted to connect to an already significantly oversubscribed power grid in Loudoun County without first developing self-sustaining microgrids onsite…The mandatory performance standards for new data centers would ensure any new data center built after a certain date would operate on continuous and backup power provided through onsite-generated, reduced carbon power sources.” https://lnkd.in/gU-B5_nC
To stem the tide of transmission lines, Turner calls for on-site power generation for data centers
loudountimes.com
To view or add a comment, sign in