Connect with us
[bsa_pro_ad_space id=12]

Business

Data Center Demand: The Biden-Harris Energy Transition Will Just Have To Wait

Published

6 minute read

A nuclear power plant

From the Daily Caller News Foundation 

 

By David Blackmon

Google has made big news in the energy space over the past week, and all of it conflicts with the Harris-Biden goals of a glorious future powered entirely by windmills, solar arrays and presumably some combination of Unicorn fur and fairy dust.

Last week, the Washington Post ran a major story detailing the fact that Nebraska’s Omaha Public Power District (OPPD) will be forced to keep two coal-fired power generation units running for years longer than previously planned to accommodate the electricity needs of new data centers being built in the area by Google and Meta. Originally scheduled to be shuttered at the end of 2023, the units will now remain active through 2026, and local residents and activists expressed skepticism they will be shut down even then.

“A promise was made, and then they broke it,” the Post quotes local resident Cheryl Weston as saying. “The tech companies bear responsibility for this. The coal plant is still open because they need all this energy to grow.”

Well, yes, they do. Given the way supposed deadlines and promises related to this government-forced energy transition have been consistently extended and broken, Weston’s skepticism seems well-grounded.

By now, most everyone is aware of the enormous new demand the proliferation of data centers is placing on the U.S. regional power grids. The new demand from Big Tech is being added to an electric system already strained by huge demands from crypto mining, EV charging and general population growth and economic expansion.

This demand growth threatens to overwhelm the ability of power companies to build new electric generating capacity rapidly enough to keep up. This is especially true for companies operating in areas that restrict such new generating capacity to be “green,” i.e. intermittent wind and solar.

In the Washington Post’s story, the OPPD attributes the need to keep the coal units running on the slow development of anticipated new wind and solar capacity. But that avoids the reality that these data centers and other big power demand hogs require reliable generation, 24 hours a day, 7 days every week. The limitations of intermittent, weather-dependent wind and solar, even when combined with current backup battery tech, leaves companies like Google and Meta demanding more reliable, consistent generation.

This reality is not limited to the Omaha area. On Monday, the Wall Street Journal reported that Google and parent company Alphabet are also backing a new company engaged in the development of a new generation of modular nuclear reactors as a means of securing its future electricity supplies. In a deal with nuclear startup Kairos Power, Google commits to buying power from seven Kairos reactors when they go live in the coming years.

“The end goal here is 24/7, carbon-free energy,” Google/Alphabet senior director for energy and climate Michael Terrell said. “We feel like in order to meet goals around round-the-clock clean energy, you’re going to need to have technologies that complement wind and solar and lithium-ion storage.”

These developments involving Google and Meta come on the heels of other recent stories detailing efforts by tech giants to secure their future power needs. In early October, Constellation Energy announced it will reactivate its Three Mile Island nuclear plant in Pennsylvania to feed the power needs of nearby data centers under development by Microsoft. Constellation announced a similar deal in July to power data centers owned by Amazon from other nuclear facilities it operates.

The securing of their own power supplies could well become a requirement for big tech companies in some regions, as regulators and grid managers become increasingly concerned about their potential to drain regional grids of needed capacity to keep the lights on for everyone else. Bloomberg recently reported on comments by Thomas Gleeson, Chairman of the Public Utilities Commission of Texas, warning data center developers they should plan to provide at least part of their own power needs if they wish to connect to the grid in a timely fashion.

What it all means is that demand for reliable, 24/7 power supplied by nuclear, natural gas and even coal is going to continue rising for the foreseeable future. The glorious energy transition will just have to wait for reality.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

Trump orders 10% baseline tariff on imports, closes de minimis loophole

Published on

From The Center Square

By 

Reciprocal tariffs higher on many nations

President Donald Trump on Wednesday put the biggest piece of his new trade policy in effect by signing executive orders that place a 10% baseline tariff on all imports and much higher rates on nations that put taxes on U.S. products.

It could be the opening salvo in a global trade war, or, as Trump sees it, the beginning of a “Golden Age” for U.S. trade.

Trump also closed the small value packages loophole that allowed China to avoid taxes on packages valued at less than $800. Companies such as Temu and Shein used the loophole to ship billions of dollars worth of products directly to U.S. consumers and avoid paying the tax, as The Center Square previously reported.

President Trump speaks about tariffs at a Make America Wealthy Again event

Trump’s moves on Wednesday, which he termed “Liberation Day” for U.S. trade, marked the most significant shift in U.S. trade policy since the end of World War II.

In a speech from the White House’s Rose Garden, Trump said foreign nations for decades have stolen American jobs, factories and industries. He said the tariffs would bring in new jobs, factories and industries and return the U.S. to a manufacturing superpower.

“Our country and its taxpayers have been ripped off for more than 50 years,” Trump said. “But it is not going to happen anymore.”

Trump’s supporters praised the trade overhaul. U.S. Rep. Marjorie Taylor Greene said it was time for foreign nations to pay up.

“If you want to do business in America, you need to play by our rules,” she said. “For too long, American businesses, big and small, have been ripped off by bad trade deals and unfair competition. President Trump is putting a stop to it. He’s standing up for our workers, our companies and our consumers.”

Critics slammed Trump’s trade plans.

“Donald Trump may want to call this ‘Liberation Day,’ but there is nothing liberating for working families who are grappling with the high costs of food, housing, and utilities,” said Illinois Gov. J.B. Pritzker, a Democrat. “Tariffs are a tax. They are a tax on working families, a tax on groceries, and a tax on other everyday necessities.”

Other countries planned their own responses. The European Union plans to retaliate with its own measures.

“Europe has not started this confrontation,” EU boss Ursula von der Leyen said in a speech. “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.”

She said tariffs are taxes “paid by the people.”

“But Europe has everything to protect our people and our prosperity,” she wrote on X. “We will always promote & defend our interests and values. And we will always stand up for Europe.”

China, the world’s second-largest economy, said Monday that it was planning to coordinate its response to U.S. tariffs with Japan and South Korea.

Japan’s Prime Minister Shigeru Ishiba said Tuesday that he was willing to fly to the U.S. to meet with Trump to get an exemption for Japanese vehicle makers. He also said the government will take steps to minimize the impact of U.S. tariffs on Japanese industries and jobs.

Trump will impose a 10% tariff on all countries that will take effect April 5, 2025 at 12:01 a.m. EDT. Trump will impose an individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China, India and Vietnam, among others. All other countries will continue to be subject to the 10% tariff baseline, according to the White House.

“These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” according to a White House fact sheet.

Trump’s executive order also gives him authority to increase the tariffs

“if trading partners retaliate” or “decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters,” according to the White House.

“Foreign cheaters have stolen our jobs, ransacked our factories and foreign scavengers have torn apart our once beautiful American dream,” Trump said in the Rose Garden.

For China, the tariff rate will be about 34% on imports from the world’s most populous nation. For European Union countries, it will be 20%. For Japan, the duty will be 24%. Imports from India will get a 26% tariff. Cambodia will get hit with a 49% tariff, among the highest Trump outlined on Wednesday.

For months, the U.S. Chamber of Commerce has warned that tariffs could increase costs for U.S. consumers and hurt businesses. Neil Bradley, the chamber’s chief policy officer, said businesses large and small don’t want tariffs.

“What we have heard from business of all sizes, across all industries, from around the country is that these broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,” he said.

Last week, Trump announced a 25% tariff on imported automobiles and auto parts, duties that he said would be “permanent.” The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue.

Trump said he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two. Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.

Continue Reading

Alberta

Big win for Alberta and Canada: Statement from Premier Smith

Published on

Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:

“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.

“This is precisely what I have been advocating for from the U.S. administration for months.

“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.

“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.

“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.

“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”

Continue Reading

Trending

X