Bob Blue’s Big Opportunity

Data center as energy hog. Image credit: Chat GPT

by Paul Goldman

America needs to win the Artificial Intelligence battle. 

Winning apparently requires building hundreds and hundreds more data centers. At least say the experts right now. Do I have the intelligence artificial or otherwise to know if this is true? No, I don’t. Neither, I suspect, do more than a few hundred Americans. But winning the race regarding such a impactful new technology certainly isn’t a bad idea. 

However, the entry fee will be costly. These data center complexes often require over 600 acres. The new one being built by Amazon in Louisa County coverage 1,400 acres. These complexes of thousands of super-fast computer chip infrastructure requires incomprehensible amounts of electric power. But even Bob Dylan had to go full-in electric eventually.

For example, META Is building five of these complexes in a community roughly 30 miles from Manhattan. How much energy do they require? Not much: Only the equivalent of all the electric power annually consumed on the Island of Manhattan.

Truth is, Virginia has more of these data centers than any state in the union. Indeed, Loudoun County has more than any locality on the planet. Their importance to localities is not the jobs created but the astounding amount of local taxes produced. Over 160 million in Prince William County.

A 622-acre complex was recently promised the Surry County. This project has suffered certain financial reversal recently. The proposal was controversial and only passed by 3 to 2 vote of the Board of Supervisors. Apparently, the winning argument revolves around the projected 70+ million dollars in annual local taxes to be generated when fully operational. This amount is greater than the entire current county tax revenue from all other sources.

Assuming Virginia localities want these local ATM tax machines to keep coming, we must resolve the following: How Is our power grid across the Commonwealth, indeed America going to power Generate and then transmit this enormous electric power to the data center site? 

The AI Revolution is therefore forcing us to confront a dull albeit electric subject too long put off to next year by political leaders. Our energy infrastructure extends, in rough form, for 5 phases:  getting the “fuel” from whatever source… to the processing/storage  system used to get the energy created…to the transmission lines….then to the end user… and finally dealing with the waste products produced by energy conversion. In this regard, we’ve come along way since Thomas Edison‘s 1882 Pearl Street power station.

This power grid equation requirement is staggering indeed incomprehensible for the average person. And the average elected official in Washington or Richmond. These facilities can never be off-line.  The equation would short-circuit Tesla’s mind. I mean the legendary scientist, not the Trump whisper. Or I guess now it’s the anti-Trump whisperer.

If the AI world is inevitable, then these energy-sucking projects are the future footprint of our electric world. This is why Saudi Arabia and Qatar got President Trump to agree to end the Biden Administration’s ban on selling them the most powerful Nvidia computer chips. This is needed to turn their deserts into envisioned datavillas. 

Mr. Trump says we can trust these foreign countries to keep America’s computer chip secrets safe from the Chinese. The biggest trading partner of Saudi Arabia is China. Qatar his long been a safe haven for certain high profile anti-American terrorists. The President says he wants to create jobs in America. There are many American localities which would greatly benefit from the many giant data center projects we are now enabling these Sheikdoms to create. 

But like I say: The staggering energy Infrastructure implications at home and abroad are beyond the current comprehension of the average American electricity consumer. Like me. 

The AI revolution therefore needs to be better explained to us, the American people. If we are supposed to actually have a meaningful say in our democracy. Which, despite a constitutional guarantee, does seem to be a tad out of favor in our political world. 

In that regard, Dominion Energy is at the epicenter of this revolution. I believe this gives CEO BOb Blue a unique opportunity to educate his fellow Virginia’s on the implications for their energy future. Admittedly, that’s not historically been seen as the job of corporate leaders. Such education is left either to those in elected office, think tanks, commentators, or our public schools. 

Let’s be honest: Our education system is failing the current generation. As for our political elites, their credibility with the public has never been lower. And for good reason: Transparency has never been their virtue. It use to be gospel that our leaders were entitled to their own opinions, but not their own facts. No longer.. The guard rails are off. Alice in Wonderland is no longer a clever fantasy. 

What needs to be addressed immediately is this: Our politicians are not doing enough to educate us on the revolution we’re living in. Partly due to their being like the rest of us: The size and speed and complexity is beyond their understanding. So, they naturally worry about appearing out of their depth. 

This situation might be tolerable if the public had sufficient trust in the requisite key elements of the private sector. This is not the case. Such trust has been dwindling for many years. If you wanna blame the politicians, then you need to blame both Democrats and Republicans. If you want to blame the corporate sector, then you need to blame many across-the-board.

But blame doesn’t solve the problem. Logic and regulatory law suggest the public is going to be funding a huge chunk of the expansion of our energy generating infrastructure. It seems useful to inform the public of what is expected them and why. The current “trust us” risk a big backlash with energy bills go up         

Mr. Blue should consider making sure his company takes the lead on the subject of informing the public. For example, the Trump administration is threatening to stop Dominion’s huge wind power project out in the Atlantic Ocean. From what I’ve read, it’s half constructed and completely mind blowing. Dozens and dozens of giant windmills towering over the ocean surface. Anchored to the seabed. The supporting towers larger than any building in Virginia. This project is roughly 35 miles off the Virginia Beach coast. 

How is that even possible?

Admittedly, President Trump’s opposition seems more political and transactional than inevitable. But the point I’m making is the following: If we are committed to the AI revolution then we need to decide on how the required power will be generated. There is no perfect energy choice. At least for the foreseeable future. Every scenario has trade-offs. 

Steve Haner written in this space interesting articles on this project and the various angles regarding the distribution of cost. We need more.

This issue of energy sufficiency – how is America going to acquire the energy needed for the new AI driven  future – Is among the most important matters facing the nation. 

The AI Revolution is gonna force our leaders to make some hard choices. In a Democracy, the people need to feel they are part of the decision-making process. 

I would urge Mr. Blue to take the lead in making sure the public feels they have been appropriately consulted on this major issue, the country can no longer avoid resolving. I know it’s not the usual job of a CEO. But I know Bob. He’s a smart guy. He’s got a smart staff. Somebody’s gotta do it. And I’d say sooner rather than later. 

Paul Goldman is former Chair of the VA Democratic Party, a former candidate for mayor of the City of Richmond, and author of “Remaking Virginia Politics.” 


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