Is Elon's Empire Crumbling?

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

As data centers proliferate, conflict with local communities follows

DAN MERICA and JESSE BEDAYN
December 05, 2024

ALEXANDRIA, Va. (AP) -- Richard Andre Newman thought he would live the rest of his life in his quiet, leafy neighborhood in suburban Virginia. He was born and raised in Bren Mar Park, where children ride their bikes and neighbors wave hello.

But now, as he's approaching 60, he's considering selling his Fairfax County home and moving away. That's because he's getting a new neighbor: Plaza 500, a 466,000-square-foot data center and an adjacent electrical substation to be built a few hundred feet from townhomes, playgrounds and a community center.

Newman feels helpless to stop it.

"I planned on staying here until I died," he said, "until this came up."

The sprawling, windowless warehouses that hold rows of high-speed servers powering almost everything the world does on phones and computers are increasingly becoming fixtures of the American landscape, popping up in towns, cities and suburbs across the United States.

Demand for data centers ballooned in recent years due to the rapid growth of cloud computing and artificial intelligence, and local governments are competing for lucrative deals with big tech companies. But as data centers begin to move into more densely populated areas, abutting homes and schools, parks and recreation centers, some residents are pushing back against the world's most powerful corporations over concerns about the economic, social and environmental health of their communities.

Tyler Ray, a vocal critic of data centers and leader in the fight against the Virginia project, said the incentives offered are not enough to counteract the consequences of building a facility so close to homes.

"All that we are asking for is, as the county is trying to bring in this data center income, that they are doing it in a way that doesn't run residents away from their homes," he said.

Dotting the hills in Northern Virginia

In Northern Virginia, more than 300 data centers dot the rolling hills of the area's westernmost counties. Cyclists who ride the popular Washington & Old Dominion trail are at times flanked by data centers, and the thousands of commuters who head into the nation's capital each day can see them in the distance from the Metro.

Plaza 500, one of the latest proposals in the area, is encroaching on neighborhoods like never before, said Newman, who heads a homeowners association in the community.

The pitch from Starwood Capital Group, the private investment firm founded by billionaire Barry Sternlicht, to Fairfax County officials promised a significant property tax boost and, in addition to permanent positions in the data center itself, hundreds of temporary construction and electrical jobs to build the facility.

Tyler Ray and his husband moved to the Bren Pointe community in 2022, hoping to balance proximity to Washington with a desire for green space.

But shortly after the couple moved in, Starwood Capital began scoping out a commercial property near their new home as a possible location for the Plaza 500 project.

When Ray and his neighbors learned of the proposal, they held protests, attended regular county meetings and drew media attention to their concerns to try and stop the development. But their efforts were largely unsuccessful: the Fairfax County Board of Supervisors in September said all newly proposed data centers must adhere to stricter zoning rules, but the Plaza 500 project would be grandfathered in under the old rules.

Ray worries that more data centers in the area could compromise the already stressed power grid: Over 25% of all power produced in Virginia in 2023 went to data centers, a figure that could rise as high as 46% by 2030 if data center growth continues at its current pace. Some estimates also show a mid-sized data center commands the same water usage every day as 1,000 households, prompting concerns over the cost of water. Ray also frets over air quality, as the massive diesel generators that help power the data centers' hardware send plumes of toxic pollutants into the atmosphere.

A spokesman for the firm declined to respond to questions for this story.

"I don't know how a general resident, even someone who has been engaging intently on an issue," Ray said, "has any chance to go up against the data center industry."

Local leaders say data centers provide a financial boon

For local governments, attracting data centers to their municipalities means a financial boon: Virginia Gov. Glenn Youngkin said in 2024 that Virginia's existing data centers brought in $1 billion in tax revenue, more than the $750 million in tax breaks given to the tech companies that own them in 2023.

For average-sized facilities, data centers offer a small number of direct jobs -- often fewer than 100 positions. Google announced recently that its two data centers in Loudoun County, which has about 440,000 residents, created only around 150 direct jobs. But data center advocates argue that the number of indirect jobs like construction, technology support and electrical work make the projects worthwhile. In that same announcement, Google said their investment spurred 2,730 indirect jobs.

Kathy Smith, the vice chair of the Fairfax County Board of Supervisors, voted in favor of the Plaza 500 proposal because, in her estimation, data center growth is inevitable in the region, and Fairfax County should reap the benefits.

"I have a responsibility to step back from what we do and look at the big picture," Smith said. "Data centers are not going away."

Amazon data centers welcomed by some in Oregon county

On the other side of the country, in Morrow County, Oregon, Amazon Web Services has built at least five data centers surrounding the 4,200-person town of Boardman, nestled among vast stretches of farmland flecked with mint patches and wind turbines, next to the Columbia river.

Last year, AWS, which is owned by Amazon, paid roughly $34 million in property taxes and fees stipulated in the agreements after receiving a $66 million tax break. The company also paid out $10 million total in two, one-time payments to a community development fund and spent another $1.7 million in charitable donations in the community in 2023.

That money has been instrumental in updating infrastructure and bolstering services for the roughly 12,000-person county, going toward a new ladder fire engine, a school resource officer, police body cameras, and $5,000 grants for homebuyers among other things.

Still, some residents are skeptical of the scale of tax break deals. Suspicions started years ago, when three formerly elected officials allegedly helped approve data center deals while owning a stake in a company that contracted with AWS to provide fiber optic cables for the data centers. In June, they each paid $2,000 to settle an ethics complaint against them.

Those officials are no longer in office. But some remain wary of the relationships between the company and local officials, and raised eyebrows at one of the latest data center deals which gives AWS an estimated $1 billion in tax breaks spread over the 15 years to build five new data centers.

Former county commissioner Jim Doherty described a meeting with AWS officials soon after he was elected to office at an upscale restaurant in Boardman, where large windows opened onto the Columbia River.

The AWS representatives asked what Doherty wanted to accomplish as a commissioner. "They said, 'Tell us what your dreams are. Tell us what you need. Tell us what we can do for you,'" Doherty recalled. Other former officials have described similar interactions. Doherty said AWS didn't ask for anything in return, but the exchange left him uneasy.

"We engage with stakeholders in every community where we operate around the world, and part of that outreach is to better understand a community's goals," said Kevin Miller, AWS' Vice President of global data centers. "This helps AWS be a catalyst for communities to achieve those goals, and reflects our ongoing commitment to being good neighbors."

Doherty and another former county commissioner Melissa Lindsay said they pushed unsuccessfully in 2022 for AWS to pay more in taxes in new data center negotiations. They also lobbied to hire outside counsel to negotiate on their behalf, feeling outgunned by the phalanx of AWS-suited lawyers.

"We didn't want to blow it up. We didn't want to run them off," said Lindsay. "But there were better deals to be made."

Boardman Mayor Paul Keefer and Police Chief Rick Stokoe say their direct line to AWS allows them to get the most out of the company.

"This road right here? Wouldn't happen if it wasn't for AWS," said Keefer, riding in the passenger seat of Stokoe's cruiser, pointing out the window at construction workers shifting dirt and laying pavement. Both Keefer and Stokoe have been in positions to vote on whether to authorize tax breaks for AWS.

"These companies would not be here if they weren't getting some kind of incentive," Stokoe said. "There wouldn't be any money to talk about."

___ The Associated Press receives financial assistance from the Omidyar Network to support coverage of artificial intelligence and its impact on society. 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

Continue Reading...

Popular

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

Marjorie Taylor Greene: 'Muslim Takeover' Threatens American Women

Rep. Marjorie Taylor Greene (R-Ga.) has expressed her fears regarding what she believes to be the most significant threat to the freedom of American women.

A 64% Dividend From Gold? - Ad

Gold is soaring. But here's what no one's talking about: a way to earn a 64% dividend-paid in real cash every 30 days. No trading. No risky mining stocks. Just one simple move in your brokerage account... and you could start collecting monthly income almost instantly.

Mystery Seller Behind $105 Million Plot Next to Jeff Bezos Estate Finally Revealed

A plot of land neighboring Jeff Bezos' property in Miami was sold for a staggering $105 million. The undeveloped lot was sold by German investor Mikhail Peleg.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

Stunning Trump Policy Unlocks Upfront Cash Payouts - Ad

The U.S. has collected $15B from Trump's tariffs - and now, thanks to Title 15, you could claim your own $100-$1,000 instant upfront cash payouts. No stocks needed. Use your phone and this income technique to collect upfront payouts now.

After Diddy's conviction, here's where his business ventures stand

LOS ANGELES (AP) — Sean “Diddy” Combs has been in his federal sex trafficking trial, but that doesn't mean the once-celebrated music mogul will see his business empire restored.

Mark Cuban Raises Employee Wages After Learning Of Government Aid Dependence

Mark Cuban, owner of the NBA's Dallas Mavericks, expressed his dismay upon learning that some of his employees were reliant on government aid programs.

What's inside Elon's building in Memphis will shock you - Ad

Inside Elon Musk's Memphis site lies a supercomputer built to power the world's first superhuman AI. It could make Elon a trillionaire - and new millionaires, too. With just $500, you could get in before the July 1st funding window closes.

What's in the latest version of Trump's big bill moving through the Senate

WASHINGTON (AP) — Republicans are inching closer to getting their tax and spending cut bill through Congress with a final Senate vote likely late Monday or early Tuesday.

Nike Beats The Street And Says The Worst Is Over

Nike Inc (NKE) stock rallies after upbeat fiscal Q4 results. Analysts maintain Buy ratings, raise price targets, citing potential for growth.

FDA Submission Expected This Summer - Invest Before It Happens - Ad

This company is making heart disease easier to detect with AI. Their tech has officially been designated a "Breakthrough" by the FDA. You now have an opportunity to get in at a potential inflection point.

How to manage ADHD at work and turn it into a strength

NEW YORK (AP) — Jeremy Didier had taken her son to a psychologist for a when she spotted an article about women with the condition. As she read it in the waiting room, she thought to herself: They're describing me.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Trump Brokers Peace Deal Between DR Congo And Rwanda — Now Eyes Billions In US Investment

Trump brokers a peace deal between DR Congo and Rwanda, aiming to end conflict and unlock U.S. investment in critical African minerals.

Elon's Greatest Invention... Hidden in South Memphis? - Ad

In South Memphis, I uncovered what could be Elon Musk's biggest invention yet. It's so secretive, rivals are flying drones to spy on it. If you're serious about investing in AI, now's the time to see what's really going on inside those walls.

Back This Medical AI Tech - Ad

You don't often find healthcare tech company valued at $4M. HeartSciences is an exception. With $75M invested, including R&D, clinical trials, and product development, their patented AI software is approaching FDA submission, a potential major inflection point.

Goldman Just Launched Two New Bond ETFs; Here's Why Investors Should Pay Attention

Goldman Sachs Asset Management debuts two new actively managed fixed income ETFs in response to rising demand for active strategies in a volatile rate landscape.

Apple Has the Potential To Crush Meta's Ray-Ban Smart Glasses, Says Ming-Chi Kuo, But The Tech Giant Has Been 'Surprisingly Slow'

Analyst Ming-Chi Kuo believes Apple has the potential to surpass Meta's Ray-Ban smart glasses, but notes the company's slow progress in this market could delay its dominance.

Do These 4 Things to Your Bank Account Now ... - Ad

A sweeping U.S. policy could soon let the government track-or even freeze-your bank account. But there are 4 simple steps you can take right now to protect your savings before it's potentially too late.

Japan launches a climate change monitoring satellite on mainstay H2A rocket's last flight

TOKYO (AP) — Japan on Sunday launched a satellite to monitor greenhouse gas emissions using its mainstay rocket, which made its final flight before it is replaced by a new flagship designed to be more cost competitive in the global space market.

Trump's Tariffs, Boeing's Blowout, Tesla's Robotaxi, BYD's European Triumph And GM's Massive Recall: This Week In Mobility

This week's business and finance highlights include Japan's rejection of Trump's auto tariffs, Boeing's scrutiny over a mid-air incident, Tesla's Robotaxi launch, BYD's dominance in Europe, and GM's massive vehicle recall.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

How a GOP rift over tech regulation doomed a ban on state AI laws in Trump's tax bill

NEW YORK (AP) — A controversial bid to deter states from regulating artificial intelligence for a decade seemed on its way to passing as the championed by worked its way through the U.S. Senate.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Wildfire kills 2 people in Spain as parts of Europe bake in heat wave

BARCELONA, Spain (AP) — Two people died in Spain in a wildfire that spread quickly before firefighters brought it under control, authorities said, as a sent thermometers soaring again on Wednesday.

A 64% Dividend From Gold? - Ad

Gold is soaring. But here's what no one's talking about: a way to earn a 64% dividend-paid in real cash every 30 days. No trading. No risky mining stocks. Just one simple move in your brokerage account... and you could start collecting monthly income almost instantly.

FACT FOCUS: No, weather modification did not cause the deadly flash floods in Texas

As authorities search for victims of the in Texas that killed more than 100 people over the Fourth of July holiday weekend, social media users are spreading false claims that the devastation was caused by weather modification.

Bitcoin, Ethereum, XRP, Dogecoin Surge Ahead Of Independence Day

Cryptocurrency markets are surging heading into the holiday weekend, fueled by optimism around altcoin ETF approvals for 2025 and the impending ratification of the ‘Big Beautiful Bill.’

Stunning Trump Policy Unlocks Upfront Cash Payouts - Ad

The U.S. has collected $15B from Trump's tariffs - and now, thanks to Title 15, you could claim your own $100-$1,000 instant upfront cash payouts. No stocks needed. Use your phone and this income technique to collect upfront payouts now.

Women can be drafted into the Danish military as Russian aggression and military investment grows

HOVELTE, Denmark (AP) — Peering across a dense stretch of woodland outside of Denmark's capital with camouflage paint smeared across her face, 20-year-old Katrine scans the horizon for approaching threats.

Meta, KKR, Lululemon And An Industrial Stock On CNBC's 'Final Trades'

Experts predict KKR, Lululemon, Meta Platforms, and Rockwell Automation to perform well.

What's inside Elon's building in Memphis will shock you - Ad

Inside Elon Musk's Memphis site lies a supercomputer built to power the world's first superhuman AI. It could make Elon a trillionaire - and new millionaires, too. With just $500, you could get in before the July 1st funding window closes.

Senate Republicans are in a sprint on Trump's big bill after a weekend of setbacks

WASHINGTON (AP) — After a weekend of setbacks, the Senate will try to sprint ahead Monday on big bill of despite a series of challenges, including the sudden announcement from that he won't run for reelection after opposing the package over its Medicaid health care cuts.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright markethundred.com
Privacy Policy | Terms of Service