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  4. Data centers are black boxes, but California wants to change that
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Hardware & Compute

Data centers are black boxes, but California wants to change that

California Gov. Gavin Newsom signed a slate of bills on Monday that could finally give communities better data - and more say - on how data centers impact their electricity bills and water supply. As data centers invade a growing number of communities across the US, they've triggered protests over how the infrastructure underpinning AI might stress power grids and local water systems. That's fueled partly by concerns about how difficult it is to see just how much electricity o

Get smart on it

California's governor has signed legislation requiring data center operators to disclose how much water and electricity they use, starting next year. Data centers have been largely opaque about their resource consumption, making it difficult for communities and scientists to understand their actual environmental and financial impact. The new transparency rules aim to help the public see whether data centers are raising electricity bills, depleting water supplies, and meeting sustainability commitments. Additional legislation directs utilities to create separate power rates for data centers so they bear the costs of new grid infrastructure rather than passing those expenses to other consumers.

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Data centers lost the midterms

Data center developers are poised to face a more restrictive building environment after voters across the country voted in candidates who favor moratoriums and ballot measures that put more obstacles on their expansion, delivering a stinging blow to a central pillar of the AI industry. Of voters polled by NBC News on Election Day, 76 percent said they opposed data centers in their communities. Dozens of local communities voted directly to restrict development through ballot mea

Also reported by Wired AI

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Elon Is Doing It Again: SpaceX Will Be The World’s Biggest AI Cloud

We wrote at length about how SpaceX’s plans for 10GW in 2027 was feasible, paving the way for +300b+ ARR. We received a lot of pushback from folks calling it impossible. Now, just two months later, we’re already seeing 3.6GW under construction across multiple sites, both existing and new. SpaceX has even revised its estimate up to ~13GW in 2027. This would be the largest amount of datacenter capacity ever built by any one company in that timeframe, roughly equivalent to all of Google

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Data centers are turning to old jet engines as the wait for power grows

The years-long wait for access to the grid and new turbines is causing data center builders to turn to an unusual, less efficient and less environmentally friendly solution: once-discarded jet engines.

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Ukraine’s drone strikes spur hasty Russian plans for underground data centers

Russian tech companies are scrambling to harden and hide their data centers underground after Ukrainian drone strikes damaged facilities housing AI supercomputers and disrupted cloud services for millions of Russian users. Meanwhile, the Kremlin is requiring data center owners to reserve computing capacity for emergency state needs and has even authorized possible use of foreign data centers. These consequences of Russia's war against Ukraine come as the Russian military has bombarded Ukrainian

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Cloud Revenue Hits $168B as AI Capacity Expands

Cloud infrastructure revenue reached $168 billion in the third quarter as providers brought higher-priced AI capacity online, reinforcing demand for new data centers even as power constraints slow delivery.

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AI’s Expansion Hits the Limits of Local Power

Power shortages and local opposition are delaying data center projects, making AI expansion harder, costlier, and more dependent on scarce grid access.