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Google invests $20B in renewable energy for AI data centers

2024-12-10

Google, in recent months, has been at the forefront of energy discussions. While nuclear power grabbed significant attention, it seems that Google's AI ambitions require more than just new reactors. The company is now collaborating with partners to build vast amounts of renewable power, battery storage, and grid upgrades to meet the energy demands of its data centers.

Google's Quest for Sustainable Energy to Fuel AI

Google's Deal with Intersect Power and TPG Rise Climate

Google announced on Tuesday that it signed a deal with renewable developer Intersect Power and investment fund TPG Rise Climate. This deal aims to generate enough carbon-free power to drive several gigawatt-scale data centers. The investment in renewable power is approximately $20 billion, and Intersect is already financing the first project. The deal also includes an $800 million equity investment in Intersect Power, with TPG leading the round and CAI, Google, and Greenbelt Capital Partners participating. This significant investment shows Google's commitment to sustainable energy.Google's rush to bolster its AI capabilities has led to a building spree that experts predict might leave new AI data centers underpowered by 2027. As a result, tech companies like Google are forced to invest in new energy sources. For the new project, a hypothetical 1 gigawatt-scale data center will be matched with an equivalent amount of wind, solar, and battery storage. This combination will have enough capacity to last two to four hours. Both the data center and the renewable power park will be connected to the same point on the grid, and Google will cover the cost of any required grid upgrades.The hope is that this arrangement will facilitate the quick connection of data centers and renewable power parks. According to Interconnection.fyi, there are 11,860 active requests in the U.S. from power producers wanting to connect with the grid, with a total capacity of 2.05 terawatts waiting. This is nearly double the current installed and connected capacity, and the majority of these requests are for solar and battery projects.

Phased Approach and Timelines

Google and Intersect will adopt a phased approach, with the first phase becoming operational by 2026 and fully completed by 2027. This highlights the speed at which renewable power can be deployed, putting pressure on nuclear power startups and developers with longer timelines. The quickest nuclear project, Microsoft's restarting of a reactor at Three Mile Island, is scheduled to come online in 2028. Google's deal with small modular reactor startup Kairos has a 2030 deadline for the first of several power plants, while Amazon's contract with SMR startup X-Energy is targeting the early 2030s. However, all these projects assume they will proceed as planned and be completed on time, which has been a challenge for the nuclear power industry so far.Renewable energy offers several advantages over nuclear power. Wind and solar energy are abundant and have minimal environmental impact. Battery storage allows for the efficient use and storage of energy, ensuring a continuous supply. Grid upgrades are crucial for integrating large amounts of renewable power and ensuring a stable energy grid. Google's efforts in building gigawatts of renewable power and upgrading the grid are a significant step towards a more sustainable future.In conclusion, Google's partnership with Intersect Power and TPG Rise Climate showcases the company's determination to address its energy needs through renewable sources. By investing in renewable power, battery storage, and grid upgrades, Google is not only meeting its current requirements but also setting an example for other tech companies to follow. The phased approach and timelines demonstrate the potential for rapid deployment of renewable energy, which could have a significant impact on the energy landscape in the coming years.

In the dynamic world of cryptocurrencies, a significant phenomenon has come to the forefront. Bitcoin, the linchpin of the digital currency realm, has witnessed a precipitous decline that serves as a stark indicator of more widespread structural issues. These issues are largely intertwined with market-wide overleveraging.

Unraveling the Cryptocurrency Crisis and Its Aftermath

Bitcoin's Chart and the Critical Correction Phase

The chart of Bitcoin now clearly shows a critical correction phase. Despite its previous display of resilience, the psychological $100,000 mark has emerged as a formidable barrier. Whales, with their substantial holdings, have begun to take profits, causing the short-term bullish momentum to wane. This has placed additional strain on the asset. Currently, Bitcoin is trading below important Exponential Moving Averages (EMAs), increasing the likelihood of a further decline in the short term. 2: This downward trend is not just a blip but a reflection of the underlying market dynamics. The overleveraging that has permeated the cryptocurrency space is starting to take its toll. As more liquidations occur, especially those related to short positions, it becomes evident that the market's aggressive long positioning is facing significant resistance. The imbalance between buyers and sellers is intensifying volatility, setting off a chain reaction that affects not only Bitcoin but also other cryptocurrencies.

The Impact of Overleveraging on Bitcoin and Ethereum

The primary cause of this cryptocurrency collapse is overleveraging. According to the liquidation heatmap, a total of $172 million of the $1.58 billion in liquidations over the last 24 hours can be attributed to Bitcoin alone. These liquidations are mainly due to short positions, highlighting the market's struggle to sustain its aggressive long positions. Ethereum, too, has not been spared. In a similar manner, $229 million was lost in liquidations, indicating that the overall altcoin market is also under significant pressure. 2: The interconnectedness of these events is crucial to understand. As assets like XRP, Solana, and Dogecoin also experience downward pressure, it becomes clear that the entire cryptocurrency ecosystem is facing challenges. The current rally, which was fueled by overly optimistic market sentiment, is proving to be fragile. This mass liquidation cycle serves as a wake-up call, emphasizing the need for a healthy correction to reset overextended positions and create a more solid foundation for future expansion.

The Short-Term Outlook and Market Adjustments

In the short term, there will likely be more volatility as the market adjusts to these recent developments. While the overall outlook for cryptocurrencies remains favorable, the immediate future is uncertain. The market is in a state of flux, with Bitcoin and other cryptocurrencies grappling with the aftermath of overleveraging and liquidations. 2: However, it is important to view these fluctuations as a natural part of the market cycle. Cryptocurrencies have always been known for their volatility, and this period is no exception. As the market recalibrates, it presents opportunities for astute investors to identify undervalued assets and make informed decisions. The key is to remain vigilant and adapt to the changing market conditions.

Leaders in the cryptocurrency space have been in a state of unrest ever since recently uncovered documents revealed that the Biden administration instructed banks not to engage in cryptocurrency business. These documents seemingly confirm the suspicions of cryptocurrency tech founders being "debanked" under a program referred to colloquially as "Operation Chokepoint 2.0."

Silvergate Bank's Collapse and Regulatory Impact

Chris Lane, the former chief technical officer of Silvergate Bank, has accused federal regulators of playing a role in his bank's downfall. After the documents were made public on Friday, Lane wrote on social media that "Silvergate became what it was serving cryptocurrency clients. [Crypto was a] strategic vertical we started focusing on in 2013. Regulators came in sometime in Spring 2023 and severely limited the amount of U.S. dollar deposits we could hold for digital asset clients. There went our entire business model." He described the experience as equivalent to being "shot in the back."Cryptocurrency's future has been a topic of much discussion in light of these events. How will it change after Trump's election win? This is a question that remains unanswered but has sparked intense speculation.

The Role of Coinbase and FOIA Requests

Last week, Paul Grewal, the chief legal officer of Coinbase, one of the largest cryptocurrency exchange platforms, shared documents that he and his team obtained through Freedom of Information Act requests. These requests have been part of a protracted legal battle between the company and the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). The documents showed that the Biden administration's FDIC sent numerous letters to banks, calling on them to "pause all crypto-asset related activity."This has raised concerns among cryptocurrency industry leaders who believe that law-abiding American businesses should be able to access banking services without government interference. Grewal pledged to continue fighting for transparency and obtaining unredacted copies of the documents.

Regulatory Stifling and Political Motives

Concerns over regulators stifling cryptocurrency's engagement with banks gained renewed attention during Thanksgiving week. Tech investor Marc Andreessen stated on Joe Rogan's podcast that more than 30 tech founders had been "debanked" for political reasons. He compared this to a similar Obama-era program known as "Operation Chokepoint," which aimed to inhibit high-risk industries like payday lenders and gun dealers.Bipartisan lawmakers are now pushing Biden to investigate Hamas' cryptocurrency financing. They believe that the incoming administration has the opportunity to reverse many of the poor crypto policy decisions, including politically motivated regulatory decisions like Operation Chokepoint 2.0.Fox News Digital reached out to the FDIC and SEC for comment but did not receive a response by press time. The cryptocurrency industry continues to face significant challenges as it navigates through these complex regulatory issues.