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Why Tech Giants Are Ditching the Power Grid

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Why Tech Giants Are Ditching the Power Grid

It is the industrial version of what homeowners might do to get through a hurricane. Only in this case, some technology companies are planning to rely on off-grid gas power for many years.

This is happening as electricity is becoming a major political issue, with fights breaking out over how much energy costs, where it comes from and who ought to pay for what. Data centers, which consume huge amounts of energy, are at the center of these debates.

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Going off grid was no one’s first choice. Off-grid power generally costs a lot more, partly because developers need to install more equipment than will be used at any one time in case machines break or need servicing. A lot of this gear is also less efficient than the airplane-size machines used at big power plants, meaning it needs to burn more gas to generate the same amount of electricity.

But in some states, it might take years to get permission to plug new power plants into the grid.

By the end of 2025, an estimated 39 percent of the gas power capacity being developed in the United States was designed to serve data centers on-site, according to the Global Energy Monitor, a nonprofit organization that tracks energy projects. That is up from 5 percent at the end of 2024.

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“Necessity is the mother of invention,” said Joe Kava, a consultant who previously led global data center development for Google. “The hyperscalers are not going to be curtailed because they can’t get power,” he said, using a term that refers to large tech companies.

Power plants have bloomed in New Albany, Ohio, near Columbus, as if overnight. It was little more than a year ago that Sloan Spalding, the mayor, learned that a data center developer wanted to build the town’s first gas-fired power plant. Now, three are under construction, all meant to exclusively power data centers, and at least one other is planned.

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Sources: Satellite image by Airbus DS via Google. Boundaries from the Ohio Power Siting Board.

“Frankly, we were all a little surprised,” Mr. Spalding said.

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Together, the plants that are already under construction are expected to rely on about 61 engines, 30 small turbines and 16 other generators, regulatory filings show. All of that equipment burns natural gas to generate electricity, but each operates differently. That does not include battery storage systems to manage demand fluctuations and diesel generators for backup power in emergencies.

It is the kind of equipment you might expect in remote oil fields. Were they connected to the grid, the machines being installed in New Albany could potentially power around 600,000 homes. Another power plant that was proposed last week would be big enough to provide electricity for an additional 200,000 homes or more if regulators approve it.

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“For better or for worse, we are the pioneers in this process,” Mr. Spalding said. “There’s not a lot we can do to stop it.”

A factory in Florence, Italy, owned by Baker Hughes, an oil field service company that makes the kinds of turbines being used off grid. Clara Vannucci for The New York Times

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Tech giants generally say they don’t want to build or operate power plants. In some places, the companies are fighting efforts to require data centers to rely on their own power sources or reduce energy consumption when electricity systems are under strain.

But the tech industry’s appetite for energy has become almost insatiable because of artificial intelligence, and there are only so many places where companies can draw large amounts of power from the grid quickly. Wait times vary by region, but it now takes an average of four years or more for data centers to connect to U.S. grids, according to JLL, a real estate services firm.

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One of the first companies to go it alone was Elon Musk’s xAI, which opened a data center in Memphis in 2024, powering it with more than a dozen gas turbines rolled in on flatbed trucks. The Southern Environmental Law Center later claimed the company flouted permitting requirements and violated the federal Clean Air Act in Memphis and at another location in Southaven, Miss. xAI, which eventually received permits for some turbines in Memphis and stopped using others, did not respond to requests for comment.

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An armada of off-grid power plants

Dozens of natural gas plants being built to serve data centers will be off the grid

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Note: Map shows natural gas plants that have been announced or are under construction. Some plant locations were adjusted to prevent overlap. Sources: Global Energy Monitor, Ohio Public Utilities Commission.

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By that point, tech companies were flocking to Ohio, so much so that the main electric utility serving the Columbus area stopped accepting data center applications for new grid connections in March 2023. The state quickly became one of the first battlegrounds between utilities and some of the world’s most valuable companies.

It was against that backdrop that some developers started going off-grid in New Albany, which is near the western edge of a large natural gas deposit.

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EdgeConneX, a Washington-area data center developer that did not respond to requests for comment, is behind one of the power plants. Williams Companies, an Oklahoma pipeline operator, is building at least two for Meta, Facebook’s parent company.

Meta has agreed to buy the power that Williams generates for at least a decade, said Chad Zamarin, Williams’s chief executive.

“Whether they use it or not, we will get paid,” Mr. Zamarin said.

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The power deal is among the most expensive that Paul Zimbardo, an analyst at the investment firm Jefferies, said he had come across. Meta may have agreed to pay Williams $140 to $160 per megawatt-hour, the investment bank estimated, well above the price of grid power.

Last week, Williams told regulators that it wanted to build a third power plant in New Albany for an undisclosed customer.

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These plants will not affect the price of electricity for Ohio residents because the facilities are not connected to the grid, though higher gas demand could drive up fuel prices over time.

Meta said the local utility’s pause on serving new data centers, which ended last year, influenced its decision to go off grid. The company, which has pledged to fully offset its greenhouse-gas emissions by 2030, is buying renewable energy to compensate for the electricity it gets from fossil fuels, said Ryan Daniels, a company spokesman.

Companies are gravitating to gas because it can theoretically generate electricity all day, unlike the wind or sun. And smaller gas generators and engines can be installed much faster than nuclear power plants.

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Natural gas will provide most of the onsite power for U.S. data centers

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Power capacity of publicly disclosed equipment

That worries Noah Malik, who lives several miles from New Albany’s new plants. “By building this infrastructure, you’ve cemented that dependence on fossil fuels,” said Mr. Malik, who is 25.

Most of the off-grid power plants being planned around the country are either under construction or about to be, meaning the full environmental effects have yet to be felt.

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New Albany’s new power plants are expected to release more nitrogen oxides — a group of pollutants linked to respiratory diseases like asthma — for each unit of electricity they produce than the larger gas plants that power most of Ohio, according to an analysis of regulatory filings and manufacturer data by the Environmental Defense Fund. That analysis, performed for The New York Times, accounts for the emissions controls that the developers have said they would install.

“I do worry about the near-term impacts of this choice on air quality and communities today,” said Mark Brownstein, a senior vice president at the Environmental Defense Fund. “Why exactly are we rushing?” he added. “There is a concern that haste is making waste here.”

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A Williams spokesman said the company would “meet and exceed all state-established requirements to protect public health and the environment.” A spokesman for the Ohio Environmental Protection Agency said it modeled air quality to assess the facilities’ cumulative impact and ensure compliance with federal standards before giving developers permission to build the plants.

Noise levels must remain within five decibels of ambient levels, said a spokesman for the Ohio Power Siting Board, which also reviews major energy projects.

A big question is how long this gas power frenzy will last. Manufacturers of gas turbines and related equipment have been wrestling with how much money to invest in new manufacturing lines. Their big concern is that, by the time the new capacity is ready, demand for the equipment might have weakened significantly.

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Baker Hughes, an oil field service company that makes the kinds of turbines being used off grid, is betting on strong data center demand for at least several years. It is one of many oil and gas companies that have piled into the power business as oil field work has slowed.

“We don’t see this being a fad,” said Lorenzo Simonelli, the company’s chief executive.

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Industry analysts and executives also question whether power plants built alongside data centers will remain competitive if it becomes easier to connect to the grid.

Siemens Energy makes some of the equipment that the New Albany power plants plan to use. But even that company’s chief executive, Christian Bruch, is skeptical about using smaller machines as permanent power sources.

“These will not be long-term installations,” Mr. Bruch said in a recent interview, discussing the broader trend. “Is it good in terms of efficiency? And is that a smart power supply solution? Absolutely not.”

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Contributor: ICE raids and migrant pay cuts are devastating California economies

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Contributor: ICE raids and migrant pay cuts are devastating California economies

Along the southern stretch of California’s Central Coast, President Trump’s crusade against immigrants has left a visceral mark. It seems these days that almost everyone there has seen or felt the aftermath of an immigration raid: cars with shattered windows left idling and businesses emptied of their usual employees and patrons. The human toll is stark. Raids around Christmas removed at least 100 people from our communities, leaving children without parents and families without primary earners — creating crises that cascade far beyond the moment of enforcement.

The economic consequences of Immigration and Customs Enforcement raids are equally severe. Recent farmer surveys have shown that immigration raids and the fear they generate have caused farmworker shortages, particularly in labor-intensive crops such as strawberries — the region’s most valuable agricultural commodity — where fruit rots on the plant without the immigrant workers who pick it.

Early research quantifying the economic impact of ICE raids in Oxnard estimates direct crop losses of $3 billion to $7 billion with significant spillover into other sectors of the economy. As families lose income to raids — whether through the direct loss of a working family member or in the form of lost business production or sales — they spend less in the local economy. The ripple effect means that the total economic impact of ICE raids is much greater than unpicked crops, with harm most concentrated among the most vulnerable: farmworkers.

Recent changes to a foreign worker program threaten to deepen the wound. The federal program, known as H-2A, allows growers and farm labor contractors to recruit temporary foreign workers to meet seasonal labor demand. It has become the fastest-growing work visa system in U.S. agriculture. It carries with it a welldocumented history of wage theft, abuse and trafficking enabled, in part, by H-2A workers’ relative isolation and inability to seek other employment while in the United States.

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Until October 2025, the wages paid to H-2A workers were, although low, not so low as to distort the labor market and drag down the wages paid to domestic farmworkers. In October, the Trump administration delivered a huge pay cut to H-2A workers and, in doing so, undercut wages for farmworkers across America regardless of visa status. Trump’s changes include both a direct wage cut as well as new provisions allowing employers to charge housing fees of up to $3 per hour worked.

Estimates of the pay that farmworkers will lose because of these changes range from $4.4 billion to $5.4 billion, or 10% to 12% of farmworkers’ annual wages. Given these figures, the losses suffered by farmworkers in Santa Barbara County alone — where I conduct research — could range from $126 million to $152 million annually, with subsequent decreases in spending and tax revenue reverberating through the region.

With H-2A labor now cheaper relative to domestic farmworkers, visa holders are likely to fill at least one-fifth of all agricultural jobs in Santa Barbara County. This exceeds the program’s 2023 peak in the county, when 18.1% of all agriculture jobs were filled by H-2A, before wage increases caused many growers to drop out of the program in 2024 and 2025. Including housing deductions, employers can now pay H-2A workers $13.90 an hour, significantly below California’s minimum wage of $16.90 an hour. Growers have a strong incentive to substitute resident workers for lower-cost H-2A labor, resulting in local farmworkers losing jobs and income. In addition, because of decreased income and employment, more farmworker families will be forced to rely on benefit programs such as CalFresh, increasing government expenditures.

The tax and budget consequences of expanded H-2A use should be a serious concern for local and state governments. Not only have Trump’s changes significantly reduced farmworkers’ taxable income, but H-2A workers themselves generate less local tax revenue and economic activity than resident workers would.

H-2A employers and employees are exempt from key payroll taxes, including Social Security, Medicare and unemployment insurance. At the same time, the program’s temporary structure — averaging about six months — means workers remit a larger share of their earnings abroad to support families they cannot bring with them, further limiting local spending and the sales tax base.

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Elected officials are not powerless in the face of these changes. A range of policy levers could help stabilize a labor market under mounting strain, particularly those that reinforce a meaningful wage floor and limit further downward pressure on earnings. This could include raising the agricultural minimum wage, increasing the California Employment Development Department’s program oversight capacity, and bolstering legal protections for undocumented farmworkers organizing for better working conditions.

The United Farm Workers are currently challenging the Trump administration’s pay rate and housing deduction in court, arguing they constitute one of the largest wealth transfers from workers to employers in the history of American agriculture. Meanwhile, Assemblymember Maggy Krell (D–Sacramento) has introduced legislation to raise the minimum hourly wage for certain agricultural workers to $19.75 — effectively restoring the previous H-2A rate. But that fix, while essential, would not take effect until 2027 and still needs to be passed. In the interim, the state and local governments must act decisively to enforce the existing wage floor, ensuring employers cannot use expanded housing deductions to push workers’ pay below the legal minimum.

These are not radical steps; they are basic protections. The alternative is to accept a race to the bottom — on wages, on working conditions and on the economic stability of the region itself.

Matt Kinsella-Walsh is a graduate researcher with the UC Santa Barbara Community Labor Center and the Organizing Knowledges Project. He researches agricultural economics and labor in the North American strawberry industry.

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Ideas expressed in the piece

  • The article argues that federal immigration enforcement has inflicted severe economic damage across California communities[1, 3, 7]

  • ICE raids created critical farmworker shortages in labor-intensive crops such as strawberries, with early research estimating direct crop losses of $3 billion to $7 billion in the Oxnard region[1, 14]

  • Immigration enforcement has generated widespread economic ripple effects, as families losing income have curtailed consumer spending, thereby harming local businesses and reducing municipal tax revenues[1, 3, 7]

  • Trump administration modifications to the H-2A visa program, including wage reductions and housing deduction provisions, will compound economic harms, with farmworkers losing an estimated $4.4 billion to $5.4 billion annually, or 10-12% of their yearly wages[1, 4]

  • These wage cuts will suppress domestic farmworker wages across all visa statuses[4, 8], decrease local tax revenue, and contract economic activity in agricultural communities

  • State and local governments should strengthen wage protections by raising agricultural minimum wages, increasing regulatory enforcement capacity, and bolstering legal protections for farmworkers to avert further economic deterioration

Different views on the topic

  • Agricultural industry representatives argue that labor costs have risen substantially over decades, placing significant financial strain on farm operations[2, 6]

  • Growers contend that without policy changes facilitating lower labor costs, some farms may face serious economic viability challenges[2, 6]

  • Industry representatives emphasize that farms operate on narrow profit margins[1], suggesting cost reductions are necessary for agricultural sector sustainability

  • Agricultural representatives highlight persistent labor shortages in the sector, pointing to historical difficulties attracting sufficient domestic workers to meet production demands, particularly in labor-intensive crops[2, 6, 8]

  • The industry maintains that access to temporary foreign workers through programs like H-2A remains essential to address longstanding workforce gaps and maintain agricultural production[2, 6, 8]

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Devin Nunes Departs Trump Media After 4 Years as C.E.O.

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Devin Nunes Departs Trump Media After 4 Years as C.E.O.

President Trump’s social media company, which has consistently lost money and struggled with a flagging share price, announced Tuesday that it was replacing Devin Nunes as its chief executive officer.

The announcement offered no reason for the sudden departure of Mr. Nunes, a former Republican congressman from California. Mr. Trump had tapped him to run the company, Trump Media & Technology, in late 2021.

The announcement was made in a news release by the president’s eldest son, Donald Trump Jr., who is a company board member and oversees a trust that controls his father’s 115-million-share stake in Trump Media. President Trump is not an officer or director of the company.

Mr. Nunes said in a statement on Truth Social, which is Trump Media’s flagship product, that it was an “appropriate time” for a new leader with experience in media and mergers to “steer Trump Media through its current transition phase.”

Trump Media has incurred hundreds of millions in losses, and its shares have performed poorly since the company went public by completing a merger with a cash-rich special purpose acquisition company, or SPAC, in March 2024. The stock, which ended its first day of trading around $58 a share, closed Tuesday at $9.82.

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Shares of Trump Media trade under the symbol DJT, which are President Trump’s initials. Truth Social has emerged as the main social media platform for Mr. Trump to communicate his policy decisions and opinions to the world.

Last year, Trump Media took in $3.7 million in revenue and recorded a $712 million net loss.

In December, Trump Media announced a plan to merge with TAE Technologies, a fusion power company. The all-stock deal, which was valued at $6 billion at the time, would create one of the first publicly traded nuclear fusion companies.

Trump Media said in February that it was considering spinning off its Truth Social platform in a merger with another cash-rich SPAC, Texas Ventures Acquisition III Corp.

Mr. Nunes is being replaced on an interim basis by Kevin McGurn, who has been an adviser to Trump Media since the end of 2024. Mr. McGurn, a former executive at Hulu, the streaming service, was listed in a recent regulatory filing as the chief executive of Texas Ventures.

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The Trump Media release announcing the management change provided no update on the merger with TAE Technologies or the proposed SPAC deal for Truth Social.

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Netflix plans to buy historic Radford Studio Center

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Netflix plans to buy historic Radford Studio Center

Streaming entertainment giant Netflix is in negotiations to buy the historic Radford Studio Center lot in Studio City.

Netflix plans to purchase the Los Angeles studio that has been home to generations of landmark television shows, including “Gunsmoke” and “Seinfeld,” according to two people with knowledge of the pending deal who were not authorized to speak about it publicly.

The studio’s previous operator, Hackman Capital Partners, defaulted on a $1.1-billion mortgage in January. Investment bank Goldman Sachs took over the property and is in talks with Netflix to sell it for between $330 million and $400 million.

Representatives for Hackman and Netflix declined to comment on the planned sale.

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Culver City-based Hackman Capital Partners and Square Mile Capital Management teamed up to buy the Radford Avenue property from ViacomCBS in 2021 with a winning bid of $1.85 billion, after a competitive battle for the 55-acre studio beloved by the television industry.

At the time, the staggering price tag underscored the value — and scarcity — of TV soundstages in Los Angeles as content producers scrambled for space to shoot TV shows and movies to stock their streaming services. It was one of the largest-ever real estate transactions for a TV studio complex in Los Angeles.

Since then, production has substantially declined in Southern California. L.A. continues to battle the loss of production to other states and countries, as well as the lingering effects on the industry of the pandemic and the 2023 dual writers’ and actors’ strikes. Cutbacks in spending at the major studios after a surge in streaming-fueled TV production have further damped film activity in the region.

Founded by silent film comedy legend Mack Sennett in 1928, the lot became known as “Hit City” in the decades after World War II as popular TV shows such as “Leave It to Beaver,” “Gilligan’s Island,” “The Mary Tyler Moore Show,” “The Bob Newhart Show” and “Will & Grace” were made there. The storied lot gave the Studio City neighborhood its name,

Netflix, which has a market cap of about $455 billion — more than double that of Walt Disney Co. — has maintained its dominance in the global streaming business with more than 325 million subscribers.

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The Los Gatos-based company has production offices worldwide, including facilities in Albuquerque, Brooklyn, London, Madrid and Toronto.

Netflix had secured an $82.7-billion deal to buy Warner Bros. studios and streaming services in December, but withdrew from the bidding war in late February after Paramount Skydance offered $31 a share. As part of the switch, Netflix was paid a $2.8-billion termination fee.

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