The Core

Why We Are Here => Economics & Investing => Topic started by: rcjordan on June 02, 2026, 03:39:34 PM

Title: Likely to dampen the data center boom
Post by: rcjordan on June 02, 2026, 03:39:34 PM
New Tennessee law requires data center owners to pay full electricity, infrastructure costs

https://www.msn.com/en-us/travel/news/new-tennessee-law-requires-data-center-owners-to-pay-full-electricity-infrastructure-costs/ar-AA24uYNf
Title: Re: Likely to dampen the data center boom
Post by: Brad on June 02, 2026, 05:09:57 PM
That's a step in the right direction.
Title: Re: Likely to dampen the data center boom
Post by: ergophobe on June 03, 2026, 01:51:14 AM
Honestly, it is and it isn't.

I don't know what the answer is, but this is an issue with the expansion of EV chargers too.

Let's say I want to launch a new truck stop that will charge electric trucks. Or let's say that I want to add a major solar farm to the grid. Both of these, for sure the latter, are a net social good.

But in the US, you have to pay ALL the downstream costs. So that solar farm simply doesn't get built because the solar generator has to upgrade every transformer down the line that is impacted. The project pencils out if they can hook up the panels and run 20 miles of line, but it doesn't when they have to upgrade hundreds of miles of line and dozens of transformers.

I don't think any other country does it this way.

So it seems like a good idea when you're taking down the big bad data center. But similar policies also take down solar farms, wind farms, electric charging truck stops, even a high-draw manufacturing facility in a depressed town.

I think a better policy would be to build some new, upgraded "backbone" grid similar to the internet backbone that serves the places that generate and use a lot of juice. A superhighway for electrons.
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 03, 2026, 08:26:56 PM
In first, California city overwhelmingly votes to permanently ban datacenters | California | The Guardian
https://www.theguardian.com/us-news/2026/jun/03/california-monterey-park-datacenters-ban
Title: Re: Likely to dampen the data center boom
Post by: ergophobe on June 04, 2026, 04:03:07 PM
> Monterey

This is like the highway system and the electric system playing out all over again. Places that actually use the capacity it that are wealthy and have the leisure to make a ruckus get them banned so they get pushed to places like where Heather lives (hopefully not) where people have less power but they also are responsible for a tiny percentage of the usage.

 :-*
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 04, 2026, 09:19:21 PM
But, but, but...

This morning's local rag article in an extremely rural, red, farm-centric county;

County puts 12-month freeze on data center development | Local News

https://www.dailyadvance.com/news/local/county-puts-12-month-freeze-on-data-center-development/article_8c03c9d3-1683-4cd2-87f0-337124c82510.html

The word is out. Even here.
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 05, 2026, 12:02:56 AM
Operating costs just went up fof some DCs

Portland General Electric to increase data center rates by 29%, cut residential rates by 1.3% - OPB
https://www.opb.org/article/2026/06/04/data-centers-utility-rate-pge/
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 05, 2026, 04:05:57 PM
We're on a roll.

New York just passed a one-year temporary ban on data centers
https://scienceaim.com/new-york-just-passed-a-one-year-temporary-ban-on-data-centers/
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 05, 2026, 07:16:32 PM
Illinois Gov. JB Pritzker to suspend tax breaks offered to data centers

https://www.nbcnews.com/politics/2028-election/illinois-gov-jb-pritzker-suspend-tax-breaks-offered-data-centers-rcna348537
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 05, 2026, 09:41:46 PM
Major indexes in the U.S. all fell at least 1.3% on Friday, tumbling as tech stocks took a dive that contributed to a poor day for the Nasdaq, which dropped over 4% amid the selloff.

https://www.forbes.com/sites/antoniopequenoiv/2026/06/05/nasdaq-plummets-4-as-tech-selloff-triggers-market-drop/
Title: Re: Likely to dampen the data center boom
Post by: ergophobe on June 06, 2026, 02:50:01 AM
> suspend tax breaks

For the love of all that is holy, when will towns, counties and states realize these tax breaks are almost always a terrible idea?

Any chance this will encourage a more general evaluation - more jurisdictions, more business types?
Title: Re: Likely to dampen the data center boom
Post by: rcjordan on June 07, 2026, 01:38:32 PM
Tech stocks lead market bloodbath as fears of Fed rate hikes add to worries about the AI-fueled chip boom petering out

https://finance.yahoo.com/markets/stocks/articles/tech-stocks-lead-market-bloodbath-223323218.html
Title: Re: Likely to dampen the data center boom
Post by: ergophobe on June 10, 2026, 02:41:30 AM
2.6% off the S&P 500 is a bloodbath?