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Balchem Corporation Announces DividendIt is a truth universally acknowledged: A politician in possession of elected office must be in want of large economic development projects. Ivy Main Such is the power of this compulsion that it is proof against all reason. Certainly, it has been proof against everything critics of the data center buildout have said so far: that Virginia is catapulting itself into a costly energy crisis that will raise utility bills for residents; that the public shows no love for this industry; and that the benefits to be gained (mostly in the form of construction jobs) will continue only as long as new projects follow one another in perpetuity until the landscape is consumed by concrete and transmission wires. To the credit of the Joint Legislative Audit and Review Commission, or JLARC, however, it has tried to sound the alarm. JLARC’s report “Data Centers in Virginia,” released Dec. 9, describes the challenges facing the state as a result of the massive, ongoing buildout of this resource-intensive industry. Many of JLARC’s conclusions seem way too sanguine to me, especially around risks to regional water supplies and air pollution from diesel generators, and the policy options it offers don’t always hit the mark. A view of the rooftop of a data center is seen in Haymarket. But on the threat to Virginia’s energy supply, JLARC is blunt: Building enough infrastructure to provide electricity for even just half the data centers projected for development across the state will be difficult, requiring far more generating facilities than are under development today. As for the current policy of allowing completely unconstrained data center growth — indeed, subsidizing it as we do now with tax exemptions to the tune of nearly a billion dollars per year — JLARC notes we are headed for a tripling of the state’s electricity usage over just the next decade and a half. Meeting that much demand, says the report, would be “very difficult to achieve,” even if the state jettisoned the carbon emission limits imposed by the Virginia Clean Economy Act, or VCEA. For those of you unfamiliar with the vocabulary of bureaucrats, “very difficult to achieve” is a term of art that translates roughly as “This is nuts.” It might have been better if JLARC had employed the vernacular, because as it is, Virginia’s elected leaders will probably take “very difficult” to be a sort of heroic challenge, like beating the Russians to the moon, when what JLARC means is more like achieving lasting peace in the Middle East. One problem is cost. The law of supply and demand dictates that a massive increase in energy demand that isn’t matched by an equally massive increase in energy supply will lead to higher prices for all customers. Yet new energy projects cost money, and under traditional rate-making principles that also means higher rates for everyone. The result is that it will be impossible to protect residents from higher utility bills, unless changes are made to the way costs get allocated. (Figuring out how to protect residents and other non-data-center customers is currently a focus of the State Corporation Commission, which held a technical conference on data centers on Dec. 16. Judging by what the experts it convened had to say, the SCC has its work cut out for it.) Even if ordinary residents could be protected, the bigger problem is that increasing the supply of energy to keep up with soaring data center demand will not be easy, fast or cheap. JLARC warns that providing enough low-cost energy requires that gas plants, solar facilities, battery projects and transmission lines all be built at a pace Virginia has never achieved before, along with onshore wind farms that have never found takers here (though that may be changing), offshore wind projects that currently lack a pathway to development and, starting 10 years from now, new nuclear plants in the form of small modular reactors, or SMRs, that haven’t yet achieved commercial viability. Data centers, such as this one that QTS operates in Henrico County, require a constant supply of electricity. Moreover, the new generation and transmission will have to overcome local opposition. On the gas side, Dominion Energy’s plans for a new plant in Chesterfield County face fierce resistance from the local community, which argues it has been burdened by fossil fuel pollution for too many years already. Clean energy also struggles at the local level. Industry representatives told members of the Commission on Electric Utility Regulation, or CEUR, on Dec. 17 that more than 30 localities have effectively banned utility solar projects within their borders. Legislators are loath to override local government authority over permitting, even when counties that welcome data centers turn down the solar facilities needed to power them. And of course, these generation projects involve willing landowners. When it comes to transmission lines that are forced on property owners through eminent domain — many of which will be needed only to carry power to data centers — the public backlash may be brutal. Given so much local resistance to new generation and transmission, the fact that so many legislators nonetheless remain wedded to the data center buildout testifies to the ability of the human mind to compartmentalize. For legislators who care about climate, JLARC has more bad news: Fully half of the new data center growth coming to Virginia is slated to occur in the territories of rural electric cooperatives, which are largely unaffected by VCEA limits. In addition, very large customers of Dominion and APCo have their own VCEA loophole: If they meet certain requirements, they can leave their utility to buy power from competitive service providers. Thus, if Virginia is serious about decarbonization, it will have to tighten, not loosen, the VCEA. The report comes with some caveats. JLARC used a team of consultants to model approaches to meeting the supply gaps, and a lot of assumptions go into the consultant’s report without a lot of details. The consultant group says it chose its mix of resources with a view to least cost, but it acknowledges that different assumptions would change the results. It may not have accounted for the fact that renewable energy and storage prices continue to drop; meanwhile, fossil gas prices are so volatile that the one certain thing you can say about any price forecast is that it will be wrong. Moreover, it appears the effects of reentering the Regional Greenhouse Gas Initiative were not modeled; nor were the social costs of carbon, both of which favor zero-emission sources over fossil fuel plants. Where there are details, some beg to be questioned. Both the consultants and JLARC take for granted that a shortage of generation in Virginia can be made up by importing electricity from other states. An easy way out, sure, but it works only if other states are producing a surplus. Unless tech companies are required to secure their own carbon-free energy supply, there is no way to guarantee imports will be available. Contrary to one of JLARC’s suggestions, then, retail choice should not be curtailed. The better move is to expand shopping options for large customers, so long as the electricity they buy is zero-carbon. An Amazon Web Services data center in Northern Virginia. Even more suspect is the idea that, in order to comply with the VCEA, all gas plants will convert to burning green hydrogen in 2045. The report might as well say, “And then a miracle occurs.” A miracle would be more likely. However unserious, hydrogen as a placeholder for any hoped-for technology that isn’t available today demonstrates the fundamental problem confronting Virginia’s damn-the-torpedoes approach to data centers. A refusal to put constraints on the buildout means taking a leap into the unknown and hoping something will happen to save us from the consequences of our profligacy. And sure, maybe it will work out. Legislators tend to be optimists, and they are already betting on bright, shiny objects like SMRs, fusion and anything else not close enough for its costs and drawbacks to be fully evident. (Not that I’m immune, but personally, I’m betting on advanced geothermal, which is not just bright and shiny but already here.) And hey, for all we know, artificial intelligence, the technology most culpable for today’s energy crisis, might even produce some unexpected new energy source. Or it might not. Given that most of the data center buildout will happen in just the next five years, we might need an actual miracle. On the flip side, maybe new technology will reduce the energy demand of data centers by orders of magnitude. That would be a fantastic outcome from the standpoint of climate, water and energy — though it would end the construction gravy train in Virginia and leave a wasteland of empty concrete warehouses and stranded energy infrastructure. Either way, the unconstrained buildout of data centers has handed Virginia leaders a problem that is, in the parlance of JLARC, “very difficult” indeed. This column was originally published in the Virginia Mercury . Ivy Main is a lawyer and a longtime volunteer with the Sierra Club’s Virginia chapter. A former U.S. Environmental Protection Agency employee, she is currently the Sierra Club’s renewable energy chairwoman. Her opinions are her own and do not necessarily reflect those of any organization. Get opinion pieces, letters and editorials sent directly to your inbox weekly!
Trump team signs agreement to allow Justice to conduct background checks on nominees, staffThe Federal Capital Territory ( FCT), Nyesom Wike, has called out the elder statesman, Dr Peter Odili over his recent comments about him and the Rivers State Governor’s political misunderstanding. Wike noted that Odili a respected political figure both in Rivers State and in the country, should not be seen or heard making comments that will reduce him to a sycophant. Wike, who spoke at the Special Thanksgiving Service organized by Speaker of the Rivers State House of Assembly, Hon. Martin Chike Amaewhule, at the Church of Nigeria (Anglican Communion), Oro-Igwe/Eliogbolo Archdeaconry Church of the Holy Spirit, Eliozu Parish, Port Harcourt on Sunday, said it was unfortunate that somebody who is supposed to be seen as an elder statesman and called a father can reduce himself to a sycophant and a trader. According to a statement signed by Lere Olayinka, the Minister’s Senior Special Assistant to the FCT Minister (Public Communications and New Media), the Minister said, “Must you be a trader all the time? As governor for eight years, what else are you looking for?” “You know, I didn’t want to say anything. But somebody called me last night and told me what someone said on social media. I said until I read it myself. This morning, I read in the newspapers, what our former Governor, Sir Dr Peter Odili said. “What did he say? He said that the present governor has been able to stop one man who wanted to convert Rivers State to his personal estate. “Between him and myself, who has turned Rivers State into his personal estate? His wife is a Chairman of the Governing Council, his daughter is a commissioner, his other daughter is a judge and he is the general overseer. “Who has now turned Rivers State to his private estate? I am sure if care is not taken if there is a chance, he can even arrange a marriage for the governor. “It was his nephew, his late senior brother’s son that was recommended for commissioner. He took the slot and gave it to his own daughter. Someone who didn’t remember to stand for the son of his late elder brother, is that an elder statesman?” Speaking further, the FCT Minister said it was painful that Dr Odili, out of political sycophancy, has forgotten all that he said in the past, adding; “All of you here remember when I was governor, this same Odili praised me to high heaven. In fact, he said then that all past governors in Rivers State combined did not do better than me. “In 2007 after he left office, he couldn’t come near power in the State because Amaechi was the governor then, he was gone! “Like somebody said that God will use someone to lift up someone. When I came in as governor in 2015, I won’t use the word resurrected, but I brought him back to life. “All of us know about PAMO University. But for us, there wouldn’t have been anything called PAMO University. Rivers State was sponsoring 100 students per session and for every semester, each of the students was paying nothing less than N5m. Then, Rivers people were attacking me up and down”, he added.
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