Business
Big Tech’s Sudden Rush Into Nuclear Is A Win-Win For America
From the Daily Caller News Foundation
By David Blackmon
The U.S. power-generation sector has been hit in recent weeks with story after story about Big Tech firms entering into deals with power providers or developers to satisfy their electricity needs with nuclear generation.
Here are some examples:
—In mid-October, Google said it had entered into an agreement to purchase power for its data center needs from Kairos Power, a developer of small modular reactors (SMRs).
—A couple of weeks earlier, Microsoft and Constellation completed a deal that would involve the restart of Unit 1 at the Three Mile Island facility in Pennsylvania to power that company’s needs.
—On Dec. 3, Meta issued a request for proposals to nuclear developers to provide up to 4 gigawatts (GW) of electricity to power data centers and AI no later than the early 2030s.
—Perhaps the most extensive development of all came two days after Google’s announcement, when Amazon announced it has entered into deals to support the development of Small Modular Reactors (SMRs) with three developers in three different regions of the country.
So, what’s going on here? Aren’t all these Big Tech companies supposed to be totally bought into the climate-alarm narrative, a narrative that claims wind and solar are the only real “clean” energy solutions for power generation? Aren’t we constantly bombarded by boosters of those non-solutions that they are able to reliably provide uninterrupted electricity if backed up by stationary batteries?
Certainly, that has been the case in the past — few corporations could hope to match the volume of virtue signaling about green energy we have seen from these tech companies in recent years. That was all fine until, apparently, the AI revolution came along.
AI is an enormous power hog, one that these and other Big Tech firms must now rapidly adopt to remain competitive.
The trouble with AI and the data centers needed to make it go is that it requires the reliable, constant injection of electricity 24 hours a day, 7 days a week, 365 days every year. While these Big Tech firms would no doubt love to be able to virtue signal about sourcing their power from wind and solar backed up by enormous banks of batteries, each and every one of them has assessed that option and realized it cannot reliably fill their needs.
Thus, the recent rush to nuclear. After all, once they’ve been built and placed into service, nuclear reactors are a very real zero emissions power source. And unlike wind and solar, nuclear plants do not have to be backed up by an equal amount of generation capacity provided by another fuel, consisting most often of natural gas plants. Nuclear reactors are basically the Energizer Bunnies of power generation: They just keep going and going.
Another big advantage nuclear brings over renewables is the avoidance of the need to invest in massive new transmission networks. This is especially true of SMRs, which can be installed directly adjacent to the contracting data centers. By contrast, wind generation installations must be located in areas where the wind reliably blows. Such areas are often hundreds of miles away from big demand centers, as has been the case in Texas.
Where solar is concerned, the provision of multiple gigawatts (GWs) of generation capacity can require the condemnation of hundreds of acres of land, often thousands. The stationary battery centers for 1 GW of solar or wind would require another large swath of land to be condemned. By contrast, the land footprint for a pair of 500 megawatt (MW) SMRs would amount to no more than a few acres.
Where the deal between Microsoft and Constellation is concerned, sourcing power from an older generation nuclear plant like Three Mile Island will involve interconnecting into an already extant transmission system, though some upgrades and extensions will no doubt be required.
This sudden rush to nuclear by some of the largest companies in the country will benefit all Americans. The massive infusion of capital will accelerate development of SMRs and other advanced nuclear tech, pressure policymakers to modernize antiquated nuclear regulations, and to streamline Byzantine permitting processes that currently inhibit all forms of energy development.
It is a win-win situation for all of us.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Business
You Now Have Permission to Stop Pretending
Why Meta’s decision to abolish DEI might be a turning point
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Last week, Mark Zuckerberg, the CEO of Meta, formerly Facebook, made a stunning announcement. He was abolishing the company’s DEI programs and discontinuing its relationship with fact-checking organizations, which he admitted had become a form of “censorship.” The left-wing media immediately attacked the decision, accused him of embracing the MAGA agenda, and predicted a dangerous rise in so-called disinformation.
Zuckerberg’s move was carefully calculated and impeccably timed. The November elections, he said, felt like “a cultural tipping point towards once again prioritizing speech.” DEI initiatives, especially those related to immigration and gender, had become “disconnected from mainstream conversation”—and untenable.
This is no small about-face. Just four years ago, Zuckerberg spent hundreds of millions of dollars funding left-wing election programs; his role was widely resented by conservatives. And Meta had been at the forefront of any identity-based or left-wing ideological cause.
Not anymore. As part of the rollout for the announcement, Zuckerberg released a video and appeared on the Joe Rogan podcast, which now functions as a confessional for American elites who no longer believe in left-wing orthodoxies. On the podcast, Zuckerberg sounded less like a California progressive than a right-winger, arguing that the culture needed a better balance of “masculine” and “feminine” energies.
Executives at Meta quickly implemented the new policy, issuing pink slips to DEI employees and moving the company’s content-moderation team from California to Texas, in order, in Zuckerberg’s words, to “help alleviate concerns that biased employees are excessively censoring content.”
Zuckerberg was not the first technology executive to make such an announcement, but he is perhaps the most significant. Facebook is one of the largest firms in Silicon Valley and, with Zuckerberg setting the precedent, many smaller companies will likely follow suit.
The most important signal emanating from this decision is not about a particular shift in policy, however, but a general shift in culture. Zuckerberg has never really been an ideologue. He appears more interested in building his company and staying in the good graces of elite society. But like many successful, self-respecting men, he is also independent-minded and has clearly chafed at the cultural constraints DEI placed on his company. So he seized the moment, correctly sensing that the impending inauguration of Donald Trump reduced the risk and increased the payoff of such a change.
Zuckerberg is certainly not a courageous truth-teller. He assented to DEI over the last decade because that was where the elite status signals were pointing. Now, those signals have reversed, like a barometer suddenly dropping, and he is changing course with them and attempting to shift the blame to the outgoing Biden administration, which, he told Rogan, pressured him to implement censorship—a convenient excuse at an even more convenient moment.
But the good news is that, whatever post hoc rationalizations executives might use, DEI and its cultural assumptions suddenly have run into serious resistance. We may be entering a crucial period in which people feel confident enough to express their true beliefs about DEI, which is antithetical to excellence, and stop pretending that they believe in the cultish ideology of “systemic racism” and race-based guilt.
DEI remains deeply embedded in public institutions, of course, but private institutions and corporations have more flexibility and can dispatch with such programs with the stroke of a pen. Zuckerberg has revealed what this might look like at one of the largest companies. Conservatives can commend him for his decision, while remaining wary. “Trust but verify,” as Ronald Reagan used to say, is a good policy all around.
Christopher F. Rufo is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.
Business
Instead of innovating themselves, Europeans trying to regulate US companies to death
From the Daily Caller News Foundation
By
Envy is an ugly thing — one of the seven deadly sins.
The Europeans have long been dripping with jealousy that American firms dominate the tech sector — cell phones, search engines, social media platforms, AI and robotics.
As a consequence, the U.S. economy as measured by net worth is now 50 percent larger than Europe’s and even the residents of our poorest states like West Virginia have a higher income than the average European.
One reason: The United States innovates while Europe regulates. Instead of fixing their economies in Euroland, the EU bureaucrats want to kneecap America’s tech success stories with fines and lawsuits and regulatory barbed wire fences to keep American firms from competing on a level playing field.
A case in point is the rash of expensive antitrust lawsuits against Google search engines.
Even worse is that a few years ago the European Union enacted “the Digital Markets Act” under the guise of trying to “ensure contestable and fair markets in the digital sector.”
Whenever government officials talk about promoting “fairness,” it means they are looking for expanding their own power.
Under this Act, Europe’s regulators are seeking to rein in successful technology companies like Apple through a new regulatory principle called “interoperability.”
Interoperability calls for third-party developers throughout the world to be given access to Apple’s private operating systems — iOS and iPadOS. In this framework, Apple is treated like a public utility with features that can be leveraged by other companies.
This is a sore-loser concept. Apple is a highly dynamic company that has achieved its market-leading status by developing wildly popular trailblazing products.
The European regulations, could require iPhones to offer competitor products. This makes as much sense as requiring McDonalds to offer Burger King fries with their “happy meals.”
The iPhone amenities and apps are part of a package deal that have made these devices the most popular in the world with billions of customers. This hardly sounds like monopolistic behavior. For people who don’t like Apple’s aps, there are many other cell phone products, such as Galaxy that consumers can turn to made by T-Mobile, Google, or a handful made in China.
For all the talk about Apple’s monopoly, they now control slightly less than 20% of the global cell-phone market.
Yet Europe’s bureaucrats have declared that Apple cannot charge product developers who are given access to the company’s operating systems. It is like getting to ride the train for free.
Interoperability is a dangerous concept — especially when it comes to security and privacy. Apple places a premium on maintaining the integrity of its devices and protecting its users’ data. But there is no guarantee that third parties given unfettered access to the Apple platform will have the same high standards.
That is going to leave Europe’s users of Apple products at greater risk of getting hacked. The results could be “disastrous,” points out Dirk Auer of the International Center for Law and Economics. “Users’ identity could be leaked, their money stolen, and their data could be compromised.”
Social media companies that want access to Apple’s operating systems could also gain access to I-phone users’ data and information. Apple warns that outsiders could “read on a user’s device all of their messages and emails, see every phone call they make or receive, track every app that they use, scan all of their photos, look at their files and calendar events, log all of their passwords, and more.”
Even Apple doesn’t access this data in order to protect the privacy of their users.
The danger here is that if companies that spend billions of dollars innovating to build a better mousetrap can’t own and control their own products and reap the financial rewards, innovation will be stifled — in which case everyone loses. Sharing patented information with competitors in the name of “fairness” is a socialist idea that has rusted the Eurozone economy.
If Europe wants to get back in the tech game, EU bureaucrats should focus on what made these companies so successful in the first place — and then try to create a public policy environment that will foster innovative companies that can compete and win — rather than run to the courts for protection. Punishing the winners is a good way to keep producing losers.
In the meantime, let’s hope the incoming Trump regulators at the FTC and FCC and the Justice Department defend American companies against aggressive and hostile lawsuits to hobble our made-in-American companies. In other words, put America first and don’t let Europe take a bite out of our Apple.
Stephen Moore is a co-founder of Unleash Prosperity and a co-author of the new book: “The Trump Economic Miracle.”
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