Data center anger becomes real as Virginia imposes first tax
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No wonder tech companies are suddenly up in arms defending energy and water usage for their data centers.
Public controversy has swirled for months about overuse of water to cool the processors and energy that might drive up prices for consumers. But this week, Virginia, which houses the most data centers in the nation, imposed a monetary penalty.
An electricity-use tax of $600 million a year on power used by data centers was criticized by environmental advocates as simply a drop in the bucket for tech giants such as Amazon AMZN 0.00%↑ or Alphabet GOOGL 0.00%↑. They wanted the tax to come with climate restrictions on water usage or clean energy mandates.
But the fact that state governments have moved from ineffective moratoriums on building data centers to actual taxes is significant. A tax of $600 million split by dozens of tech companies may seem small but imagine if all Democratic states followed suit. Pretty soon it becomes real money, as they say. That’s why Big Tech is nervous.
Virginia Gov. Abigail Spanberger, who rose to victory in elections in part on the data center issue, is being criticized this week but she should be commended for getting the ball rolling. The AI world, long used to dictating outcomes, is suddenly paying attention.
Don’t forget to contact me directly if you have suggestions or ideas at dcallaway@callawayclimateinsights.com.
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How Trump led a clean energy revolution despite himself
. . . . The Iran war is forcing a global adoption of renewable power to offset oil prices. While it may be going a bit too far to say President Donald Trump has been a blessing to the renewable energy industry, Mark Hulbert writes, it’s recently become clear that the industry has benefitted in several significant ways from his policies. Another unexpected effect of the U.S. president’s antipathy toward renewable energy is showing the world that, even without government subsidies, it can not only survive but even thrive.
Thursday’s subscriber insights
Why Trump’s gasoline price probe could be different this time
. . . . President Trump’s call this week for a Department of Justice probe into oil-price gouging at the pump followed a well-worn political path of the president blaming oil companies for higher gas prices when oil prices suddenly fall.
The difference is this time it might work, since Trump often determines in advance what his DOJ might find.
Every president back to Ronald Reagan blamed oil companies for not lowering prices fast enough after an oil spike reversed itself. None of their investigations turned up anything. This time is no different.
Because as anyone in the business will tell you, the oil companies pay higher prices during the spike but typically buy a lot in case prices go even higher. So when prices suddenly fall they still have to sell all their high-priced inventory.
But in Trump’s case, he badly needs an energy price win ahead of the midterms, even at the expense of his oil company friends. That is the Trump playbook after all.
So don’t be surprised if Trump’s DOJ actually does turn up evidence of price gouging; a high-profile victory which will then be quietly settled by promises for more oil for Americans in time for the elections.
It’s good to be the king.
Editor’s picks: Climate action is changing shape; plus, Europe swelters
Watch this video: At this year’s G7 summit, world leaders notably avoided putting one thing on the agenda: climate change. Has the world stopped caring about climate action — or is something else happening? DW News speaks with David Victor, professor at the University of California San Diego. Beyond President Trump’s personal disinterest in climate action, Victor discusses how governments are reframing climate policy around energy security and economic competitiveness so that climate action is not slowing down — it’s simply changing shape.
Europe suffers under deadly heat dome
A strong and deadly heat dome has stalled over western and central Europe this week, forcing temperatures up into the 100°F to 115°F range. France, at the center of the extreme heat, on Tuesday endured its hottest day since records began. CNN reports the UK and Spain hit new records for any day in June. More record temperatures were expected today. In France, people seeking relief from the heat in rivers and ponds have resulted in at least 40 deaths, officials said. Météo-France compared this heat wave to one in 2003 that killed nearly 15,000 people. In Britain, the Met Office has issued exceptionally rare “Red Extreme Heat Warnings” for today, with temperatures forecast to hit 102°F.
Latest findings: New research, studies and projects
Searching for the cause of Atlantic Ocean warming
New research that has been able to separate natural climate events from those caused by human activity is revealing critical information about the causes of warming in the Atlantic Ocean. The findings, published in the journal Geophysical Research Letters, are valuable for understanding Atlantic hurricane activity and for infrastructure planning and management on the east coast of the U.S., reports Earth.com. Long-term temperature swings in the Atlantic have been thought to be the result of natural ocean circulation. But researchers found that greenhouse gas emissions and air pollution now drive Atlantic sea surface temperatures, while natural climate patterns are the driving factors in the Pacific Ocean. Michael Diamond, an assistant professor of meteorology at Florida State University, and meteorology graduate Anthony Freveletti led the study. They worked with Robert Wills, an assistant professor at the ETH Zürich Institute for Atmospheric and Climate Science. According to the report, the research says the Pacific oscillations are genuinely natural. In contrast, Freveletti told Earth.com, “We found that long-term changes in the Atlantic are more directly related to anthropogenic — human-produced — causes such as greenhouse gases and aerosols.”
Words to live by . . . .
“The crisis of climate change is far too urgent, and discussion simply isn’t enough. We cannot be anything less than courageous and revolutionary in our approach to tackling climate change.” — King Charles III, speaking at the start of London Climate Week.