Neoclouds: Datacenter Activism
With alot of activism against datacenters, even in the pro business state of Texas, I believe what we are seeing leverage being transfered from who bring the business to who bring the power.
Prior to the AI power boom, governments would often need to incentivize businesses to build factories or other power consuming infrastructure in their jurisdictions. Now for future grid interconnections, Governor Abbott of Texas is looking to make datacenters pay the cost.
$IREN's current energized sites in Childress and SW1 already have grid interconnection so their doesn't need to be payment for those but hopefully
$IREN's batch 0 sites are grandfathered in.
Now, if this is datacenter activism in pro-business Texas, its very likely that other states will increase cost and standards of datacenters. Now, America will always allow datacenters to be built to to stay in the AI race, but the cost will go up and the government will look to take a bite of revenue. There's no easier place to take a bite than the base layer of power.
Look for grid expansion costs to be passed on and standards to be raised for BTM. This is beneficial for those with existing grid secured power like
$IREN.
Sign of the times. Even Texas pushing back on data centers.
Gov. Abbott directed PUC ERCOT to:
→ Make data centers pay 100% of their own grid interconnection costs (zero cost-shifting to residential ratepayers)
→ Initiate action to cut residential transmission bills by July 31
→ Submit a joint memo on what else they can do by July 17
And he's pledging to push legislation next session to:
→ Repeal data center sales tax exemptions
→ Mandate closed-loop water cooling
→ Require annual electricity water usage reporting
→ Enforce setbacks and noise rules near communities