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Indianapolis Star
3 days ago
- Business
- Indianapolis Star
Data centers are inevitable, but why should Indiana pay for their energy demand?
Indiana has given $168 million in subsidies for data centers, which are projected to more than double the state's electricity demand very quickly while only creating a few dozen jobs. As a result, despite its already tight fiscal budget, the state has started planning to massively expand its energy grid, even looking decades into the future to invest in an emerging small modular nuclear reactor industry. It is very problematic that large industries get these massive tax breaks while electricity costs soar for the average consumer in Indiana. Artificial intelligence, after all, is a vital national security asset, the federal government is responsible for regulating interstate commerce and we are competing with geopolitical enemies like China in an arms race to develop it. More: Indiana taxpayers shouldn't subsidize $168M in data center corporate welfare | Opinion If the federal government wants to win that race, it needs to step in and give regular consumers a way to escape energy market volatility or spread the cost of data centers' electricity demand across the nation. The 'Big, Beautiful Bill' phases out energy tax credits, making shielding consumers from energy market volatility much more difficult. This tax credit returned 30% of the cost of a consumer's investment in energy efficiency, including through a solar array for their homes. Such an array could shield consumers from rate increases while their utility companies invest in expanding grid capacity for data centers. The energy tax credits helped more consumers than they should have, to be sure, but could be brought back at a much lower cost if they were limited only to homeowners, rather than larger businesses, as homeowners would likely have a more difficult time obtaining the credit to invest in solar energy without them. In my case, the federal tax credit enabled me to obtain a solar energy loan that costs less per month than my electricity bill otherwise would have been. Another solution would involve a major federal investment in energy infrastructure, akin to the National Interstate and Defense Highways Act of 1956 that built up the interstate as we know it today. The main difficulty preventing the construction of a national interstate highway system was the apportionment of funding between the federal government and the states. The frustration of voters in certain states and localities bearing more of the cost of rapid increases in energy demand due to data center development is the major difficulty preventing the construction of nationwide artificial intelligence infrastructure today. More: Braun's smart IEDC picks must now tackle Indiana's development spending mess | Opinion President Dwight D. Eisenhower, recognizing that an interstate highway infrastructure was a national security issue, nationalized the cost so it would be spread out among all the beneficiaries of the system. The federal government could step in and do the same today to incentivize independent energy producers to fulfill data centers' energy demands rather than investor-owned utilities. This would shield regular consumers from the rapid spike in electricity costs. First, Indiana would have to deregulate their energy supply. Utility monopolies have had complete control over energy distribution in the state in their government-granted service territories since 1983. 'Utilities were fighting over customers and there was no real competition. There weren't independent energy producers or transmission owners… [but] what has happened in the last 20 years is we have had major reforms that have created a competitive wholesale market,' said Kristina Wheeler, former vice president and staff counsel for Indiana Municipal Power Agency and general counsel for the Indiana Utility Regulatory Commission. 'Anyone approved and qualified… [to] build generation or transmission can do so [but] they can't sell directly to any business or home, they have to go through the utilities that existed in 1983.' As such, utilities are able to keep a chokehold on their service territories. Takanock, Inc., for example, aims to develop data centers and provide 'reliable and resilient power solutions for those facilities.' They tried to purchase energy from producers independently from investor-owned utilities, to avoid passing on costs to consumers earlier this year. NIPSCO, however, denied their request, despite allowing many other large-load customers to do so. 'Takanock understands that cost-shifting to 9 other utility customers is a non-starter, and is willing to bear the reasonable costs to extend service to its future data center developments,' Kenneth Davies, founder and CEO of Takanock Inc., wrote in a petition to the Indiana Utility Regulatory Commission. 'We also believe there are reasonable regulatory methods to protect consumers and balance the interests of the significant economic development these projects will bring to Indiana.' Georgia recently resolved this issue by forcing utility companies to allow large-load customers like data centers to buy energy from independent producers. 'Everybody should have an opportunity to serve and take on the associated risk, and my concern is what's been happening in Indiana is we're just being very protective of those legacy providers,' Wheeler added. Reliable Energy, Inc. is working toward leveling the playing field in Indiana for independent energy producers, and recently won a settlement requiring Duke Energy to study if their coal plants could be sold to a third party instead of being retired. If our energy supply were deregulated, and the federal government were able to invest in independent energy production facilities, they would likely focus on natural gas-fired power plants, since they are one of the cheapest to build. Just 10 new data centers proposed in the state will likely require 9,700 megawatts of energy. Building natural gas-fired power plants to fulfill this demand would likely cost around $7,954,000,000, or $820 per kilowatt of energy based on national average construction costs from 2022. However, natural gas plant construction by Indiana's legacy utilities routinely runs more than double that amount per kilowatt, likely due to the cost of aging infrastructure. Duke's Cayuga power plant and NIPSCO's R.M. Schahfer gas peaker plant are two such examples. For comparison, data centers built across the country in 2024 only added around 7,000 megawatts of demand to the energy grid. If nationwide trends continue, expanding the grid would only require a $5,740,000,000 yearly investment from the federal government. The federal government is one of the few entities capable of making such large investments, but could easily recoup the cost by requiring these energy producers to return a percentage of plant profits until the capital costs are paid off. The federal government already spends around $20 billion to subsidize the fossil fuel industry simply to lower energy costs, and does not get most of this money back. The Chips and Science Act involved a $52 billion investment in semiconductor manufacturing, so comparatively, it would be a small investment to prepare the energy grid to meet the demand of data centers. It has taken mass blackouts and electricity rationing for China to treat energy production like the national security issue it is. Hopefully, Indiana and the U.S. will take action before then, otherwise the utility monopolies' stranglehold on consumers will continue, and energy will become increasingly unaffordable.
San Francisco Chronicle
04-07-2025
- Politics
- San Francisco Chronicle
Letters: What do freedom and liberty mean on this Independence Day?
Last month, at a D-Day Memorial event in France, 101-year-old veteran Harold Terrens said, 'Freedom is everything. I pray for freedom for the whole world.' President Dwight D. Eisenhower once said that the Founding Fathers 'proclaimed to all the world the revolutionary doctrine of the divine right of the common man." Proclaiming that all men are created equal and carry with them God-given rights to life and liberty was indeed a revolutionary idea 249 years ago. Unfortunately, not everyone in the world lives freely. The United Nations' Declaration of Human Rights states, 'All human beings are born free and equal in dignity and rights.' Let us hope and pray that someday soon, every man, woman and child in the world will enjoy the same freedoms that we Americans enjoy this Independence Day. Pete Campbell, San Jose Honor founding ideals As we celebrate the 249th anniversary of Independence Day, we should ask ourselves the same question that President Donald Trump struggled to answer from the Oval Office recently: What does the Declaration of Independence mean to you? Unfortunately, Trump's response was a manifestation of his historical illiteracy — 'a declaration of unity and love and respect, and it means a lot.' It had nothing to do with the decision of the Founding Fathers to declare independence from British rule by seeking 'to dissolve the political bands' with an oppressive monarchy. Independence Day should serve as a reminder that thousands gave their lives to escape the bonds of a government where a single person held supreme authority. It is a day set aside to commemorate the birth of our nation and to celebrate its core principles of liberty and equality, something inexcusably outside of the president's grasp. Jim Paladino, Tampa, Fla. Community led the way Only after that did Supervisor Joel Engardio support a nonbinding resolution — Proposition G — which voters passed overwhelmingly. Let's be clear: Engardio did not start this movement. He was invited in after the heavy lifting was done. It's wrong for him to now take credit as a campaign talking point. Public education deserves more than opportunistic politics. Our children deserve leaders who lead from the start — not just when it's popular. Selena Chu, San Francisco Trash the new cans Regarding 'S.F.'s quest for a better trash can was plagued by high costs. Will this time be different?' (San Francisco, July 1): This story brings back memories of the original interminable squabbles over the cost and design of new San Francisco garbage cans. I recall the mock-ups as ugly and impractical. It is hard to believe, given the city budget deficit, that Public Works has decided to spend $3,000 each for 3,000 new cans. The chosen design looks like shiny stainless steel and is covered with multiple, vertical and elevated strips of metal. Imagine the difficulty cleaning the graffiti embedded in all those recessed areas. A sleek, simple and flat design should have won the day. Karen Cliffe, San Francisco Don't mince words Let's skip the cute names like 'Alligator Alcatraz' and call the Trump administration's new Florida immigration detention center what it is: a concentration camp. Prisoners at the real Alcatraz landed there after going through a trial, not just being rounded up by masked goons without warrants. Our country is headed in a bad direction, and it's important for us to speak about it truthfully. Siobhan Ruck, San Francisco
Mint
23-06-2025
- Business
- Mint
Dual-use warfare: The military-industrial complex is out in the open now
Srinath Sridharan Amid brazen displays of firepower, warfare has economic incentives that are no longer hidden and don't seem to make the arms industry and its political backers squirm. What Eisenhower warned of is the world's reality today. The US has long used military force not only to pursue security objectives, but also to safeguard its access to resources such as oil, gas and rare minerals. Gift this article The United States, the very country whose former president and war hero Dwight D. Eisenhower first warned against the rise of a 'military-industrial complex," has since become its most active architect, user and beneficiary. The United States, the very country whose former president and war hero Dwight D. Eisenhower first warned against the rise of a 'military-industrial complex," has since become its most active architect, user and beneficiary. This complex has matured into a diffused but dominant global operating system. Its power is not exercised through the use of combat aircraft and missiles alone, but through procurement cycles, legislative influence, job guarantees and an expanding web of strategic dependencies that now tie national security to economic continuity. Also Read: Mint Quick Edit | The US blasts in: A forever war in Iran? In West Asia, US strikes on Iran's nuclear infrastructure mark a dramatic escalation, with American forces joining what had been a bilateral Iran-Israel conflict. The US has entered a volatile theatre at a moment when restraint might have offered it greater leverage. The move could widen the conflict zone and deepen Washington's entanglement in a dynamic where deterrence, diplomacy and industrial interests have become indistinguishable. The US made a spectacular display in Iran of its most advanced bombers and bunker buster bombs, but Iran's response of missiles fired at Israel would suggest that Israeli demand for interceptor ammunition to defend itself is unlikely to flag. Costly hostilities mean that this is not only about geopolitics, but economics, with the US ready to keep its key ally in West Asia well supplied with military hardware. American action over the weekend underscores the dual imperatives that shape power today: the projection of strength abroad and preservation of influence at home. Each military provocation feeds a feedback loop that rarely ends in resolution. Iran's threat to close the Strait of Hormuz and target US assets in the region is alarming but unsurprising. Any aggression displayed by Tehran triggers a chain of responses: from security alerts and military deployments to insurance recalibrations and, ultimately, arms-replenishment contracts. In such a cycle, while conflict may not be deemed desirable for its own sake, its economic value is obvious. The US has long used military force not only to pursue security objectives, but also to safeguard its access to resources such as oil, gas and rare minerals. From the first Gulf War to interventions in Iraq and Afghanistan, US military engagements and regime change pursuits have reinforced a domestic defence sector that contributes directly to GDP, sustains high-value employment and drives technological advances. Far from being scaled back after the Cold War ended, America's military-industrial capacity has been kept in top condition. This assures the US supremacy in any armed conflict as well as leadership of the geopolitically controlled market for armaments. Also Read: Israel-Iran conflict: Echoes of history haunt West Asia The Iran war provides a fresh opportunity to recast economic vulnerabilities as strategic necessities. At home, the US could soon reframe its vast debt pile and fiscal fragility as a burden imposed by its responsibility to keep the world safe. That others must 'pay' for security is a theme that Washington has been harping on. Enhanced defence budgets among its allies, of course, would serve American arms producers well. The military-industrial complex is no longer a Western monopoly. Its logic has been embraced by other powers. In China, defence manufacturing serves both as a technological frontier and employment engine. In Israel, defence innovation underwrites global exports. For Iran, asymmetric warfare enables regime resilience and circumvents international isolation. So long as the normalization of long-term hostility serves industrial interests, big or small, arms-makers have no incentive to let stability take hold. Today's global scramble for rare earths mirrors the 20th century's oil rush, but with digital dominance as an underlying motive. Iran is rapidly emerging as a significant global player in the field of strategic minerals. In April, it commissioned its first monazite-based rare-earth pilot plant in Abbas Abad, capable of processing 17 rare earth elements with domestic technology. The country is estimated to hold about 85 million tonnes of rare-earth reserves. It reportedly has vast deposits of lithium, cobalt, copper and bauxite. Preliminary exploration suggests Iran may host the world's second-largest lithium field and one of West Asia's largest porphyry copper reserves. These resources are vital to consumer electronics, defence systems and clean-tech initiatives. Their strategic value places Iran's mineral wealth at the centre of geopolitical contention. In this context, the language of peace often sounds performative. Institutions like the United Nations are structurally locked out. This may remain the case so long as the economics of deterrence outweighs the ethics of diplomacy. At times, military action also has domestic political utility. The optics of a victory can eclipse economic anxiety, while strategic assertion tends to find more public support than strategic restraint. This yields the absurdity of aggression cloaked in words of diplomacy and peace. That Pakistan, long accused of abetting terrorism, would nominate US President Donald Trump for the Nobel Peace Prize reveals the performative farce all this has become. The military-industrial complex no longer hides in the shadows. It is embedded in legislation, budgets and political game plans. In the business of war, peace isn't just inconvenient, it's a threat. The author is a corporate advisor and author of 'Family and Dhanda'. Topics You May Be Interested In
Yahoo
13-06-2025
- General
- Yahoo
Historic Army locomotive finds new home in Abilene
ABILENE (KSNT) – Abilene is welcoming in a 1940's-era Army locomotive this week that will be added to the list of other historic engines which call the town home. The Abilene & Smoky Valley Railroad (ASVRR) announced on June 12 that it has added a restored Alco/GE 44-ton locomotive to its collection of historic locomotives. The engine, which goes by the name of 'IKE,' was constructed in 1940 for use by the Army. The ASVRR reported the engine was originally purchased by the Arkansas Interurban line in Wichita, Kansas and later served the Army in San Bernadino, California. The locomotive takes its name from Dwight D. Eisenhower, the 34th president of the U.S., who was serving in the Army in the same time frame as the engine was in service. Found an arrowhead in Kansas? Archaeologist urges you to leave it alone Staff with the ASVRR and Heritage Rail Management began extensive renovation work on the locomotive in 2024. This included the addition of new wheels, a new engine, mechanical upgrades and a new coat of paint. Mary Jean Eisenhower, granddaughter of Dwight, officially christened the locomotive on Sunday, June 8 at the 1887 Rock Island Depot in Abilene. You can learn more about what Abilene has to offer with historical attractions by clicking here. 'Castle on the Kaw' for sale at $888,000 in Topeka For more local news, click here. Keep up with the latest breaking news in northeast Kansas by downloading our mobile app and by signing up for our news email alerts. Sign up for our Storm Track Weather app by clicking here. Follow Matthew Self on X (Twitter): Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-06-2025
- Politics
- Yahoo
Contributor: Trump's military parade and contempt for troops dishonor our service
This Saturday, a parade celebrating the Army's 250th anniversary kicks off in Washington. It will include nearly 10,000 soldiers and dozens of helicopters, tanks and armored fighting vehicles. The 90-minute event is expected to cost $45 million — factoring in the roughly $16 million for anticipated damage to roads not accustomed to such heavy tracked vehicles. In a recent interview, President Trump promoted the event, which also falls on his 79th birthday: 'We have the greatest missiles in the world. We have the greatest submarines in the world. We have the greatest army tanks in the world. We have the greatest weapons in the world. And we're going to celebrate it.' Thing is — after 25 years in the Army, from West Point to Iraq — I (like everyone else who's worn a uniform) can affirm that our equipment isn't what makes us great. Our Army and all America's armed services are made of men and women, not metal and wire. The gear always changes; the Americans who serve and sacrifice are the constant. It's not just the parade. Other recent events suggest the commander-in-chief could use a friendly nudge toward the right way to honor our military. On May 24, Trump gave a graduation speech at West Point with his red campaign hat on, veered into a five-minute story about avoiding 'trophy wives,' blew off the traditional handshake with cadets by saying, 'I'm going back now to deal with Russia, to deal with China' — and then flew straight to his golf club in New Jersey. The next morning, Trump began with a Truth Social message: 'HAPPY MEMORIAL DAY TO ALL, INCLUDING THE SCUM THAT SPENT THE LAST FOUR YEARS TRYING TO DESTROY OUR COUNTRY.' Which made his next 'weave,' during what's typically a somber speech at Arlington National Cemetery, seem almost tame: 'We have the World Cup and we have the Olympics.... Now look what I have. I have everything." Of course, neither is exactly the right tone to memorialize those who've fallen. (Who even says 'happy' Memorial Day?) But gaffes like this raise a far more important question: How should we honor our military? How ought civilians properly thank those in uniform, past and present? It can be awkward. I know from experience. I was a 24-year-old lieutenant when I got home from my first yearlong tour in Iraq. I was wearing my camo uniform when someone loudly said, 'Thanks for your service!' from about 15 feet away. I didn't know what to do, so I nodded in response. I was embarrassed at the acknowledgment. Better men whom I served with didn't come home. I'm not the first to feel that feeling. Eighty years ago, nearly to the day, Gen. Dwight D. Eisenhower delivered an address in London just after the end of the Second World War. He said, 'Humility must always be the portion of any man who receives acclaim earned in the blood of his followers and the sacrifices of his friends.' Anyone who's served in real close combat knows full well that when you're fortunate enough to get to come home, you can be proud, very proud of your service — but you never brag or boast. So here's the right way to think about honoring our military: We appreciate a modest acknowledgment — no more, never less — of our unique role in defending our country and way of life. 'No more' because we are not special. Soldiers aren't movie superheroes — if we were, there would be nothing to honor because there'd be no risk. We come to service from among you. We're the guy you sat next to in chemistry, the girl you played with on the playground. We're not always victims, we're not always villains, we're not always valorous, and we're not always victorious. We're some blend of all these things. Even George Washington, arguably our greatest general, who won the war that mattered most and protected America when it was still in its crib — worried constantly about losing. He was scared because he was human, and so have been all those since who've worn an American uniform. 'Never less' because we are unique. We train to get over our fears to fight. We go where we're sent, not where we choose. We trade soldiers' lives for our nation's protection, for objectives, for time, for military value. Nobody ever said this better than John Ruskin. 'The soldier's trade, verily and essentially, is not slaying, but being slain,' the English historian wrote in the 1800s. 'Put him in a fortress breach, with all the pleasures of the world behind him, and only death and his duty in front of him, he will keep his face to the front; and he knows that this choice may be put to him at any moment.' But just as we acknowledge this unique role, we in uniform must also equally appreciate those who make our service possible. For those in uniform aren't the only ones in America who sacrifice. Imagine the parents who send their only daughter or son into combat — would anyone dare say they do not also risk everything? Or other forms of service. My mother was a special education teacher in a poorer part of town and struggled for years to give a chance to otherwise forgotten kids. My father was among the first to join the Transportation Security Administration after 9/11. So I've seen civilians serving, even when it was hard. There are some who misguidedly claim military members have a monopoly on service. This myopia is best captured by a bumper sticker shaped in a soldier silhouette: 'Freedom Isn't Free — I Paid for It.' This claim is as flimsy as the sticker it's printed on. It ignores those who also contribute to the fullness of freedom: journalists who free the truth, doctors who free us of disease, clergy who free our souls, teachers who free us of ignorance, lawyers who free the innocent, and so many more in society who silently serve every day. After all, each soldier is the direct result of this entire community. And while basic security may be necessary for the exercise of freedom, it's certainly not sufficient to ensure 'Life, Liberty and the pursuit of Happiness.' That takes a bigger American team. It's taken me two decades to figure out how to respond to 'Thanks for your service.' I now say, 'It's been the greatest privilege — thank you for making it possible.' That doesn't cost $45 million or even 45 cents. All it should ever cost is a brief moment of direct eye contact, a few genuinely felt words — and never ever forget the handshake. ML Cavanaugh is the author of the forthcoming book 'Best Scar Wins: How You Can Be More Than You Were Before.' @MLCavanaugh If it's in the news right now, the L.A. Times' Opinion section covers it. Sign up for our weekly opinion newsletter. This story originally appeared in Los Angeles Times.
