Data Centers, the Orange Crush, and the Rumor in My Backyard
AI data centers became one of several hot button issues for voters in the midterm election yesterday and it appears most of the nation is opposed to their unchecked proliferation. They are an odd bit of business given they are generally huge in physical size, require supernatural levels of energy, and endless volumes of water to keep them cool. And while their construction can be billion dollar projects, once they are built, they require only a few employees.
My own concern has less to do with AI technology and everything to do with the enormous cost of these things. Building the number of data centers the industry has suggested will cost trillions of dollars. I’m concerned with the environmental impact and overuse of resources like energy and water, but I also worry that given the highly speculative nature of AI, too much investment capital will be misallocated to these construction projects draining available capital from traditional businesses with human employees.
The midterm elections have assuaged my concerns somewhat given the Blue Wave (I prefer to call it the ‘Orange Crush’ for an obvious reason) has changed the game and the new players seem to have less tolerance for letting the billionaire tech bros run amok. So let’s say new rules and regulations may slow the roll on this rapidly evolving new technology. At a minimum, the notion of government control is likely to spook investors limiting the capital available for unchecked growth.
I’m following this a little more closely since rumors began swirling about a data center in my own backyard; allow me to explain.
More than thirty years ago the Academy of Model Aeronautics purchased 1,100 acres of wide open spaces on the east end of town. They moved their headquarters and model museum there where they hold regular events for tens of thousands of radio controlled plane enthusiasts annually. It’s a wonderful facility and the AMA has been a perfect neighbor in our little town. It’s very analogous to the ARRL as it’s a member organization based on a hobby with about the same number of members and they also produce a printed magazine for model enthusiasts.
A few weeks ago an ominous announcement appeared on their web site that suggested they were considering selling the 1,100 acres and moving their operation elsewhere. It was all very preliminary and non-disclosure agreements would allow them to say no more about it. Suddenly, locals were trading rumors about the land being sold with the notion of a large data center being built there.
Nothing is for certain at this point but citizens here are tooling up for a fight. Indiana has long been a reliable Republican bastion where politicians operate like gangsters. It wouldn’t be terribly surprising if the first confirmation about a new data center being built here is announced after the bulldozers break ground.
The Republican majority in Indiana aren’t particularly smart but they usually have a self-preservation mode which should be on high alert following the recent ass kicking their party suffered during the Orange Crush. Hopefully that will be enough to make this entire deal, if there is a deal, fall apart.
Apologies to the AMA.