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Trump’s plan for rising energy costs: Pump oil, make data centers pay

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Trump’s plan for rising energy costs: Pump oil, make data centers pay

Energy affordability was in the spotlight during President Trump’s lengthy and at times rambling State of the Union address Tuesday evening as the president promised to bring down electricity prices in an effort to assuage voter concerns about rising costs.

The president announced a new “ratepayer protection pledge” to shield residents from higher electricity costs in areas where energy-thirsty artificial intelligence data centers are being built. Trump said major tech companies will “have the obligation to provide for their own power needs” under the plan, though the details of what the pledge actually entails remain vague.

“We have an old grid — it could never handle the kind of numbers, the amount of electricity that’s needed, so I am telling them they can build their own plant,” the president said. “They’re going to produce their own electricity … while at the same time, lowering prices of electricity for you.”

The announcement comes as polling shows Americans are dissatisfied with the economy and concerned about the cost of living. Experts on both sides of the political spectrum have said the energy affordability issue could translate to poor outcomes for Republicans in the midterm elections this November, as it did in a few key races in New Jersey, Virginia and Georgia last year.

While Trump has focused on ramping up domestic production of oil, gas and coal, residential electric bills have been soaring — jumping from 15.9 cents per kilowatt-hour in January 2025 on average to 17.2 cents at the end of December, according to the U.S. Energy Information Administration.

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Through one year into his second term as president, Trump has vastly changed the federal landscape when it comes to energy and the environment, reversing many of the efforts made by the Biden administration to prioritize electrification initiatives and investments in renewable energy via the Inflation Reduction Act and Bipartisan Infrastructure Law.

Among several changes, Trump’s administration has slashed funding for solar programs, ended federal tax credits for electric vehicles and canceled grants for offshore wind power — even going so far as to try to halt some such projects that were nearing completion along the East Coast.

Trump has also championed fossil fuel production and on Tuesday doubled down on his “drill baby drill” agenda, touting lower gasoline prices, increased production of American oil and new imports of oil from Venezuela.

Many of the president’s efforts are designed to loosen Biden-era regulations that he has said were burdensome, ideologically motivated and expensive for taxpayers.

Trump has taken direct aim at California, which has long been a leader on the environment. Last year, the president moved to block California’s long-held authority to set stricter tailpipe emission standards than the federal government — an ability that helped the state address historical air quality issues and also underpinned its ambitious ban on the sale of new gas-powered cars in 2035.

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Trump also slashed $1.2 billion in federal funding for California’s effort to develop clean hydrogen energy while leaving intact funding for similar projects in states that voted for him. In November, his administration announced that it will open the Pacific Coast to oil drilling for the first time in nearly four decades, a move the state vowed to fight.

But perhaps no issue has come across voters’ kitchen tables more than energy affordability.

So far this term, Trump has canceled or delayed enough projects to power more than 14 million homes, according to a tracker from the nonprofit Climate Power. The group’s senior advisor, Jesse Lee, described the president’s data center announcement as a “toothless, empty promise based on backroom deals with his own billionaire donors.”

“Making it worse, Trump is continuing to block clean-energy production across the board — the only sources that can keep up with demand, ensure utility bills don’t keep skyrocketing, and prevent massive new amounts of pollution,” Lee said in a statement.

Earlier this month, Trump’s Environmental Protection Agency repealed the endangerment finding, the U.S. government’s 2009 affirmation that greenhouse gases are harmful to human health and the environment, in what officials described as the single largest act of deregulation in U.S. history. The finding formed the foundation for much of U.S. climate policy. The EPA also loosened guidelines around emissions from coal power plants, including mercury and other dangerous pollutants.

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The president’s environmental record so far is “written in rollbacks that put the interests of some corporate polluters above the health of everyday Americans,” read a statement from Marc Boom, senior director of the Environmental Protection Network, a group composed of more than 750 former EPA staff members and appointees.

Further, Trump has worked to undermine climate science in general, often describing global warming as a “hoax” or a “scam.” During his first year in office, he fired hundreds of scientists working to prepare the National Climate Assessment, laid off staffers at the National Oceanic and Atmospheric Administration and dismantled the National Center for Atmospheric Research, one of the world’s leading climate and weather research institutions, among many other efforts.

In all, the administration has taken or proposed more than 430 actions that threaten the environment, public health and the ability to confront climate change, according to a tracker from the nonprofit Natural Resources Defense Council.

The opposition’s choice for a rebuttal speaker is indicative of how seriously it is taking the issue of energy affordability: Virginia Gov. Abigail Spanberger focused heavily on energy affordability during her campaign against Republican Lt. Gov. Winsome Earle-Sears last year, including vows to expand solar energy projects and technologies such as fusion, geothermal and hydrogen. Virginia is home to more than a third of all data centers worldwide.

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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Aspiration co-founder sentenced to 14 years for fraud

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Aspiration co-founder sentenced to 14 years for fraud

The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.

The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.

Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.

Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.

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Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.

In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.

The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.

Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.

The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.

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The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.

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Monterey Park takes landmark vote on banning data centers

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Monterey Park takes landmark vote on banning data centers

Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.

If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.

Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.

As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.

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Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.

“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”

The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.

The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.

While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.

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The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.

In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.

The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.

“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”

The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”

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While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.

“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”

The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.

As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.

Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.

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Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”

While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.

“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”

Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.

Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.

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“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”

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