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Data centers, US riots: AI's new power for some, higher bills for others (and the onslaught of Big Tech) |

Data centers, US riots: AI's new power for some, higher bills for others (and the onslaught of Big Tech) |

Trump takes away computers and social media from their jobs: the construction of artificial intelligence is favored over any other part.But the American protests have already blocked dozens of social media: here's why Data centers, US failures: the new force...

Data centers US riots AIs new power for some higher bills for others and the onslaught of Big Tech

Trump takes away computers and social media from their jobs: the construction of artificial intelligence is favored over any other part.But the American protests have already blocked dozens of social media: here's why

Data centers, US failures: the new force of artificial intelligence in a few, other higher bills (and the invasion of Big Tech)

Trump rejected the mandate on computers and data centers: AI construction is more popular than any other sector.But American protests have blocked dozens of data center construction projects: Here's why

This article is from Federico Faubini's "Whatever It Takes" newsletter, click here to view.

I have spent a few days in northwest Indiana on the shores of Lake Michigan.The Chicago skyline is visible from the beach, and the immigration and customs violations (ice) of people sent by the Administration continue to be shown in the Chicago area.72 hours later, he has stopped a thousand people when the citizens who did "not for the king" demonstration against Donald Trump.

But another protest is invisible to the American mainstream media, so it bothers me more.Surprised.Because I am not in the big cities of liberal America, but in the small towns of conservative and traditional and traditional and traditional and traditional America.Houses set apart with separate houses with stars and stripes in front,

It is a manifesto that spreads across America as a quiet fire, not seen in Washington, New York or San Francisco.The "No Data Centers" sign will return to Columbia Gorge, Oregon, Buckeye, Arizona, Peculiar, Missouri and dozens of other places you may have never heard of.However, that's where American economic history passes and Ours has the same.Because those protests speak to the new inequalities that may bring the Artificial Intelligence Revolution: Social, but most of all geographical.In this regard, it is no different from what happened thirty years ago when the Rust Belt industrial zones went to a crisis because they were exposed to Chinese competition, while Wall Street grew.We see.

The Hobart project

To make sense, I saw a small sign on the bell on the lawn: "No Information Center."I was in Hobart, thirty thousand inhabitants of the Lake State.The owner, Karla Humk, is an American of German descent who came to work in a steel mill in the United States.She is a bank manager, her husband is a retired police detective.It has dark stripes.Vote on who I am open to Trump's tariffs, even if asked.In Indiana, the incumbent is eighty-eighty out of 84 out of 84 states.

What worries Carla Houck, however, has nothing political to begin with.A kilometer away from her house is an unplanned field.Lawyers from a construction company called devco hobart, which was built in February this year, left.A company without history and face.It is a screen owned and built by Big Tech - usually Google, Amazon, Opera, Microsoft or Operay - 1,600 meters on a side fifteen meters high on the roof. The wire is three times higher than the limits of the authorized zone.Staff, working full-time: No more than forty professionals.The work - the field of data processing or the computing capacity of artificial intelligence - he never explained.Electricity use and water use, another mystery;but it is definitely astronomical.

The mysterious Decoy pressured Hobart's mayor with the tools at their disposal - financial power, lobbyist sophistry and well-paid lawyers - to approve the data center as soon as possible.Regarding Trump, "nobody expected the speed at which it all happened - said Carla Hawke - but they continue to explain to us any information, any information".

From the outside, the data center looks like a windowless warehouse.Inside it are rows of computers from floor to ceiling for tens, hundreds of meters.In the world of artificial intelligence, especially generative intelligence, it helps create enormous computing power that trains algorithms and makes them more powerful.This intelligence is deeply physical, material: systems use electricity and water for cooling, which requires digging tens of meters beneath data centers until faults are found.Carla Hoka's husband notices that the electricity bill at their home has already increased by 30% due to the increased demand associated with the AI ​​revolution.Analysis by Bloomberg shows how data center growth is proportional to significant increases in electricity commodity prices, proportionally in areas with higher concentrations of data centers (graph below).

stock market miracle

This is the main factor that Orík's understanding brings.Therefore, in all advanced applications.The market value of Nvidia of Nvidia ($44.6 billion $ 42%) increased by 52% this year, increased by 52% in the year, increased in the street Krugman.And technology that can change history.Also, it requires a strong investment.Then there is the promotion idea that the sales of companies in this business, a person will have annual income, and the company can put in at least 800 dollars of close investment).

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In short, Big Tech's leading managers understand that they need to invest in data centers to be credible as future oligopolists, so that they can keep their shares on Wall Street and, with it, their stock options.They know the bubble will burst, but it doesn't matter now.Chick Prince Citigroup before the Subprime market accident in 2007 said: "As long as the music plays Time, you have to get up and dance."And the big technology giants are dancing: Google, Amazon, Microsoft and Oracle investments have jumped from just over by a billion dollars in 2022 to just over three hundred billion this year.These are Hobart (Indiana), Columbia Gorge (Oregon), Buckeye (Ariz.), Peculiar (Missouri) and hundreds of other similar locations.Arrive at projects. Who now rebels.

The construction of data centers by these large groups is now vital to growth and the stock market in the United States.As the above graph indicates, according to data from the Bureau of Economic Analysis, investment in artificial intelligence represents half of the growth in the United States each year. And without it, the same wind weighs on Wall Street.The eight companies protagonists of this revolution (NVIDIA, Microsoft, Apple, Alphabet, Amazon, Meta, Broadcom and Oracle) represent only 39% of the share value of the entire New York list, 39% of the S&P 500, and this year's so-called "Magnificent 7" (remove the entire growth from this list and add Tesla

Of course, these companies are heavily invested, and sometimes they need to keep the bubble inflated and the music going a little longer.Lately, they have started making deals that look like contracts but are pure cyclical exchange of goods.Nvidia recently pledged to invest a hundred billion dollars in OpenAI, and OpenAI is using the funds to buy NVIDIA microchips to increase its computing power.OpenAI then struck a similar deal with Nvidia's direct competitor AMD.Both groups of semiconductors sell their products for their own money and produce computing power that is not needed today;if it is not an accounting fraud, then it is because everything is transparent these days.

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But this technological revolution is vital to Wall Street and American growth, but Trump is taking it in a different light.As Joseph Politano recalled, few categories include computers and central components without exemption from import duties.So, Trump continues industrial policy by building AI, but there are other areas: those who make cars or other industrial products don't have to raise the prices of all the categories they order, but those who do at the center don't.

Carla hook calculations and what to do with all of us soon?First, the decision to increase information about electricity price increases across society is a political choice.Sorry, but this is the government's choice.It is entirely possible for large technologies to pay for the electricity demand associated with the large investments in computing power of large technologies only to produce large technologies;Instead, the team actually subsidizes the costs of some of the wealthiest companies and the world's best-paid executives.This is already happening in the US, and will soon be in Europe and Italy.It is no coincidence that local protests in America today have blocked dozens of projects worth $64 billion in seven different countries.

But it's not just that.One of the issues that Carla Hook and Hobart, Indiana, is all about is the bursting of the AI ​​bubble.They fear that the data center they want to operate near their home today will be fed up with knowing what financial or technological breakthrough is just around the corner.They fear that their neighbors will leave because of the pollution or noise of the data center or its skeletons - or it will now take the municipality's tax revenue, street maintenance, security, their safety and the value of their homes.I asked Carly, "what if this revolution gets rich many times over at the expense of the masses?"He said: "Now the name of the game is Ai.But hasn't that always been the case?'

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