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26 responses to “A New 800-Pound Gorilla in Virginia Politics”

  1. LarrytheG Avatar
    LarrytheG

    One of the things not well recognized is just how many small businesses are on the Amazon platform including AWS and payment services.

    Millions of small businesses who once were more or less confined to a local presence now can reach potential customers around the world – and do. And Amazon rides herd on the not-so-wonderful types also.

    The data center thing is ironic but expected. People want electricity, water, sewer, internet, highways, etc but not close to their homes…. They need to be off somewhere in the country but they still want their Amazon stuff.

    They not only don’t want data centers, but solar and won’t want SMRs either is my bet.

    1. Stephen Haner Avatar
      Stephen Haner

      Yes, Larry, the demand created by this exploding data center industry is why anybody with an IQ in double digits understands the “wind and solar can do it all” myth is ridiculous and will never materialize.

      1. Nancy Naive Avatar
        Nancy Naive

        Have you seen โ€œThe Matrixโ€? They have ways of getting reliable power.

      2. LarrytheG Avatar
        LarrytheG

        Anyone who says wind/solar will do it all, need their head examined. The key issue is wind/solar cheaper than gas and when/if it is why would we not use it?

        Some folks on the right have trouble understanding this concept.

      3. LarrytheG Avatar
        LarrytheG

        What Amazon , Microsoft, others are doing are buying the amount of solar power that is equivalent to their total 24/7 use. They’re willing to buy that power thus there is a market for solar farms that can provide it.

        Is it cynical PR or is it something that their customers like them doing?

        And yes, the customers ARE paying for it, embedded in their costs which Amazon can and STILL be competitive with other non-Amazon sellers.

        So what is the problem? Amazon is willing to pay for it and their customers are okay with it.

        Why I bet the same naysayer conservatives like Bacon and Haner also “support” Amazon… bet you!

      4. Agreed, it will be interesting indeed to see how Amazon threads the needle between its commitment to green energy and its voracious demand for a reliable, uninterrupted supply of electricity at a competitive price for its data centers.

        1. DJRippert Avatar
          DJRippert

          As far as price – as long as the other hyperscalers (notable Google and Microsoft) toe the clean energy line, it won’t be a competitive disadvantage for AWS. Their product is so much cheaper than an onsite datacenter the cost of electricity is not enough to get people out of the cloud. Now uninterrupted … well, that would apply to public clouds and private datacenters. All businesses suffer when the grid is unreliable (except maybe those business selling candles and generators).

        2. LarrytheG Avatar
          LarrytheG

          Need to also understand the difference between “new” demand and existing demand transferred from bricks/mortar to cloud. Amazon is serving existing demand more efficiently IMO.

        3. The only green that Amazon is committed to is the color of money. Green energy is a marketing tactic to build a brand name. It’s not a serious strategy for Amazon based on its actions.

  2. Carter Melton Avatar
    Carter Melton

    Great article….thanks for posting.

    When you look at the power and influence of Dominion Power, why do I get the feeling, that with Amazon, Virginia is like the dog about to catch the pickup truck ?

  3. Nancy Naive Avatar
    Nancy Naive

    Amazonโ€™s logo is apropos.

  4. James C. Sherlock Avatar
    James C. Sherlock

    Wait until interruptions in the power grid providing green energy start dumping power to those data centers.

    Iโ€™m going to guess that data centers that take up that percentage of Dominionโ€™s load have trouble providing backup power, but maybe someone knows.

    1. Nancy Naive Avatar
      Nancy Naive

      Amazon will just build itโ€™s own grid. When it comes to those kinds of power drains (and noise) nothing beats cryptocurrency.

    2. Nancy Naive Avatar
      Nancy Naive

      Amazon will just build itโ€™s own grid. When it comes to those kinds of power drains (and noise) nothing beats cryptocurrency.

    3. Nancy Naive Avatar
      Nancy Naive

      Amazon will just build itโ€™s own grid. When it comes to those kinds of power drains (and noise) nothing beats cryptocurrency.

      https://www.cnn.com/2023/01/19/us/north-carolina-crypto-mine-noise-weir-wxc/index.html

      BTW, the data centers get power during outages for the surrounding areasโ€ฆ wonder how that works?

      1. DJRippert Avatar
        DJRippert

        Cloud datacenters have extensive backup and generation capabilities onsite – usually not at all green.

        1. LarrytheG Avatar
          LarrytheG

          as does Walmart, Lowes, and most hospitals and 911 dispatch, etc…

          1. f/k/a_tmtfairfax Avatar
            f/k/a_tmtfairfax

            FCC regulations and best practices have required telecom companies to have backup power for decades. If something is essential to public safety or the economy, it damn well better have backup power. Ah, that made me feel like Director Vance.

          2. LarrytheG Avatar
            LarrytheG

            backup systems are normal and not going to go away anytime soon… I supposed it’s possible, they may eventually go to battery backup systems but for a place like WalMart, it would have to be a huge honker ….. for 12, 24 hours.. days..

    4. James McCarthy Avatar
      James McCarthy

      The Shadow knows what evil lurks in the hearts of men. Oldie but goodie.

  5. Stephen Haner Avatar
    Stephen Haner

    Meet the new boss. Just like the old boss. When I wrote about the coalition running an ad to oppose Dominion’s profit-raising bill, I specifically mentioned Amazon. Ten years ago on those issues the data center industry refused to engage, but Amazon does and will. And don’t forget who owns the Washington Post. Even Dominion never thought of that!

    The idea of granting a sales tax exemption only to those who meet certain capital spending or hiring goals is, let us say, creative. Not seen that elsewhere but perhaps I’m missing something. Also not sure it passes constitutional muster if somebody has the cohones to challenge it. As to the fiscal impact estimate….Dick, you can’t be so naive as to fail to understand those are often tilted.

    1. Nancy Naive Avatar
      Nancy Naive

      Massachusetts offered a tax break for hiring/payroll to Raytheon in the 1990s. You really canโ€™t leave loopholes. If I recall correctly, they closed a plant, increased pay to ULM and officers resulting in a loss of jobs AND a tax break.

      Legislatures are amateurs when compared to corporate legal offices.

      1. DJRippert Avatar
        DJRippert

        “Legislatures are amateurs when compared to corporate legal offices.”

        Legislatures are amateurs when compare to just about any competently run operation. And our legislature is part-time and heavily funded by special interests.

    2. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      In the past, legislative impact statements were not “tilted” very often. DPB used to challenge the agencies on their estimates and provide its own projections. Now, I see less and that, with DPB serving as a compiler of what the agencies contend would be the impact. As it did in this LIS, DPB just passed the buck by saying, in effect, “This is what the Dept. of Taxation says…” And, yes, I strongly suspect that the Governor’s office had a strong say in how this one read.

  6. James C. Sherlock Avatar
    James C. Sherlock

    Good work Dick. You and Haner have the franchise on reporting on such matters.

  7. Kathleen Smith Avatar
    Kathleen Smith

    This was an outstanding article. Thanks for providing.

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