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Microsoft Deal Signals Booming Demand from Data Centers to Power AI

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
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Microsoft Deal Signals Booming Demand from Data Centers to Power AI

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo

US utilities are finally signing concrete supply deals with data-center operators as the artificial-intelligence wave sparks a surge in power demand, paving the way for higher profits in the coming quarters.

Data centers are expected to account for 8% of the power generated in the US by 2030, compared with 3% in 2022, according to a Goldman Sachs report in May.

Here are some deals announced by utilities in 2024, according to Reuters.

Constellation Energy signed an exclusive deal with Microsoft to restart one of the units at the Three Mile Island nuclear plant in Pennsylvania.

Under the agreement, the utility will provide 835 megawatts (MW) of energy to the tech giant's data centers. The deal would also mark the first ever restart of a nuclear power plant in the US after it was shut down.

Ameren signed a supply deal with a data center with a power capacity of 250 megawatt (MW). It has also received expansion commitments and executed new contracts for more 85 MW of additional load for smaller data centers and other industries across Missouri and Illinois.

Alliant Energy said it has executed multiple power supply deals with data centers, but did not disclose details.

Exelon said it is in the engineering phase for more than 5 GW of data center capacity. Some data-center customers have also made deposits for ComEd - Exelon's subsidiary - to order transmission and breakers, the firm said during a post-earnings call.

American Electric Power signed letters of intent to power an additional 15 GW of data centers by the end of the decade.

Xcel Energy will supply power to Meta Platforms' data center in Minnesota, expected to come online in late summer 2025.

Entergy has received legislative approval for investment in transmission and generation to serve Amazon's upcoming Amazon Web Services (AWS) facility in Mississippi. Pinnacle West Capital has more than 4,000 MW of committed data center customers, not including the backlog of more than 10,000 data center requests it has received.

AES signed an agreement with Google for 310 megawatts to support its Ohio data centers.

It further expanded a previously announced partnership with Google and signed a 15-year power purchase agreement for 727 megawatts in Texas. Talen Energy announced a deal to supply electricity and its 960-megawatt data center campus to Amazon's AWS in Pennsylvania.

NextEra's renewables segment saw a rise of 3 gigawatts (GW) worth of renewables and storage projects in second quarter, including Google's 860 megawatts (MW) demand for its data center power.

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Social Media Companies Slam Australia's Under-16 ban

Social media companies slam Australia's under-16 ban - AFP
Social media companies slam Australia's under-16 ban - AFP
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Social Media Companies Slam Australia's Under-16 ban

Social media companies slam Australia's under-16 ban - AFP
Social media companies slam Australia's under-16 ban - AFP

Social media giants on Friday hit out at a landmark Australian law banning them from signing up under-16s, describing it as a rush job littered with "many unanswered questions".

The UN children's charity UNICEF Australia warned the law was no "silver bullet" against online harm and could push kids into "covert and unregulated" spaces online.

The legislation, approved by parliament on Thursday, orders social media firms to take "reasonable steps" to prevent young teens from having accounts, AFP reported. It is due to come into effect after a year.
Prime Minister Anthony Albanese said the age limit may not be implemented perfectly -- much like existing restrictions on alcohol -- but it was "the right thing to do".

The crackdown on sites like Facebook, Instagram and X would lead to "better outcomes and less harm for young Australians", he told reporters.

Platforms have a "social responsibility" to make children's safety a priority, Albanese said.

Social media firms that fail to comply with the law face fines of up to Aus$50 million (US$32.5 million) for "systemic breaches".

TikTok said it was "disappointed" in the law, accusing the government of ignoring mental health, online safety and youth experts who had opposed the ban.

"It's entirely likely the ban could see young people pushed to darker corners of the internet where no community guidelines, safety tools, or protections exist," a TikTok spokesperson said.

Tech companies said that despite the law's perceived shortcomings, they would engage with the government in shaping how it could be implemented in the next 12 months.

The legislation offers almost no details on how the rules will be enforced -- prompting concern among experts that it will be largely symbolic.

Members of the public appeared doubtful.

"I don't think it will actually change a lot because I don't see that there's really a strong way to police it," 41-year-old Emily Beall told AFP in Melbourne.

Arthur McCormack, 19, said some things he had seen on social media when he was younger were "sort of traumatic".

"I think it's good that the government is on this ban. But in terms of enforcement, I'm not sure how it will be carried out," he said.

Meta -- owner of Facebook and Instagram -- called for consultation on the rules to ensure a "technically feasible outcome that does not place an onerous burden on parents and teens".

- 'Serious concerns' -

But Meta said it was concerned "about the process, which rushed the legislation through while failing to properly consider the evidence, what industry already does to ensure age-appropriate experiences, and the voices of young people".

A Snapchat spokesperson said the company had raised "serious concerns" about the law and that "many unanswered questions" remained about how it would work.

But the company said it would engage closely with the government to develop an approach balancing "privacy, safety and practicality".

UNICEF Australia policy chief Katie Maskiell said young people need to be protected online but also included in the digital world.

"This ban risks pushing children into increasingly covert and unregulated online spaces as well as preventing them from accessing aspects of the online world essential to their wellbeing," she said.

Leo Puglisi, a 17-year-old online journalist based in Melbourne, was critical of the legislation.

He founded streaming channel 6 News, which provides hourly news bulletins on national and international issues, in 2019 at the age of 11.

- Global attention -

"We've been built up by having 13 to 15-year-olds see 6 News online and then join the team," Puglisi said in a statement.

"We have said that this ban seriously risks restricting creativity from our young people, no matter what passion or future career they want to explore," he added.

One of the biggest issues will be privacy -- what age-verification information is used, how it is collected and by whom.

Social media companies remain adamant that age verification should be the job of app stores, but the government believes tech platforms should be responsible.

Exemptions will likely be granted to some companies, such as WhatsApp and YouTube, which teenagers may need to use for recreation, school work or other reasons.

The legislation will be closely monitored by other countries, with many weighing whether to implement similar bans.

Lawmakers from Spain to Florida have proposed social media bans for young teens, although none of the measures have been implemented yet.

China has restricted access for minors since 2021, with under-14s not allowed to spend more than 40 minutes a day on Douyin, the Chinese version of TikTok.