Економіка

ABBOTS LANGLEY, England — Originally built to store crops from peasant farmers, the Tithe Barn on the edge of the English village of Abbots Langley was converted into homes that preserve its centuries of history. Now, its residents are fighting to stop a development next door that represents the future.

A proposal to build a data center on a field across the road was rejected by local authorities amid fierce opposition from villagers. But it’s getting a second chance from British Prime Minister Keir Starmer’s government, which is pursuing reforms to boost economic growth following his Labour party’s election victory in July.

Residents of Abbots Langley, 30 kilometers northwest of London, worry the facility will strain local resources and create noise and traffic that damages the character of the quiet village, which is home to more than 20,000 people. Off the main street there’s a church with a stone tower built in the 12th century and, further down the road, a picturesque circular courtyard of rustic thatched-roof cottages that used to be a farm modeled on one built for French Queen Marie Antoinette.

“It’s just hideously inappropriate,” said Stewart Lewis, 70, who lives in one of the converted houses in the 600-year-old Tithe Barn. “I think any reasonable person anywhere would say, ‘Hang on, they want a data center? This isn’t the place for it.'”

As the artificial intelligence boom fuels demand for cloud-based computing from server farms around the world, such projects are pitting business considerations, national priorities and local interests against each other.

Britain’s Deputy Prime Minister Angela Rayner has stepped in to review the appeals filed by developers of three data center projects after they were rejected by local authorities, taking the decision out of the hands of town planners. Those proposals include Abbots Langley and two projects in Buckinghamshire, which sits west of London. The first decision is expected by January.

The projects are controversial because the data centers would be built on “greenbelt” land, which has been set aside to prevent urbanization. Rayner wants to tap the greenbelt for development, saying much of it is low quality. One proposed Buckinghamshire project, for example, involves redeveloping an industrial park next to a busy highway.

“Whilst it’s officially greenbelt designated land, there isn’t anything ‘green’ about the site today,” said Stephen Beard, global head of data centers at Knight Frank, a property consultancy that’s working on the project.

“It’s actually an eyesore which is very prominent from the M25” highway, he said.

Greystoke, the company behind the Abbots Langley center and a second Buckinghamshire project to be built on a former landfill, didn’t respond to requests for comment. In an online video for Abbots Langley, a company representative says, “We have carried out a comprehensive search for sites, and this one is the very best.” It doesn’t specify which companies would possibly use the center.

The British government is making data centers a core element of its economic growth plans, deeming them “critical national infrastructure” to give businesses confidence to invest in them. Starmer has announced deals for new centers, including a 10 billion pound ($13 billion) investment from private equity firm Blackstone to build what will be Europe’s biggest AI data center in northeast England.

The land for the Abbots Langley data center is currently used to graze horses. It’s bordered on two other sides by a cluster of affordable housing and a highway.

Greystoke’s plans to construct two large buildings totaling 84,000 square meters and standing up to 20 meters tall have alarmed Lewis and other villagers, who worry that it will dwarf everything else nearby.

They also doubt Greystoke’s promise that it will create up to 260 jobs.

“Everything will be automated, so they wouldn’t need people,” said tech consultant Jennifer Stirrup, 51, who lives in the area.

Not everyone in the village is opposed.

Retiree Bryan Power says he would welcome the data center, believing it would benefit the area in a similar way as another big project on the other side of the village, the Warner Bros.’ Studio Tour featuring a Harry Potter exhibition.

“It’ll bring some jobs, whatever. It’ll be good. Yeah. No problem. Because if it doesn’t come, it’ll go somewhere else,” said Power, 56.

One of the biggest concerns about data centers is their environmental impact, especially the huge amounts of electricity they need. Greystoke says the facility will draw 96 megawatts of “IT load.” But James Felstead, director of a renewable energy company and Lewis’ neighbor, said the area’s power grid wouldn’t be able to handle so much extra demand.

It’s a problem reflected across Europe, where data center power demand is expected to triple by the end of the decade, according to consulting firm McKinsey. While the AI-fueled data boom has prompted Google, Amazon and Microsoft to look to nuclear power as a source of clean energy, worries about their ecological footprint have already sparked tensions over data centers elsewhere.

Google was forced to halt plans in September for a $200 million data center in Chile’s capital, Santiago, after community complaints about its potential water and energy usage.

In Ireland, where many Silicon Valley companies have European headquarters, the grid operator has temporarily halted new data centers around Dublin until 2028 over worries they’re guzzling too much electricity.

A massive data center project in northern Virginia narrowly won county approval last year, amid heavy opposition from residents concerned about its environmental impact. Other places like Frankfurt, Amsterdam and Singapore have imposed various restrictions on data centers.

Public knowledge about the industry is still low but “people are realizing more that these data centers are quite problematic,” said Sebastian Lehuede, a lecturer in ethics, AI and society at King’s College London who studied the Google case in Chile.

As awareness grows about their environmental impact, Lehuede said, “I’m sure we will have more opposition from different communities.”
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New Delhi — The electric vehicle industry is closely watching to see how Tesla boss Elon Musk, who played a key role in the victory of Republican President-elect Donald Trump, will use his influence with the incoming president to steer the industry’s future.

At stake are several issues including the new administration’s approach to tariffs on Chinese EVs and tax credits. In anticipation of decisions favorable to Tesla, shares in the company rose 27% after the election result was announced, taking its market capitalization to $1 trillion.

During the campaign, Trump said he would increase tariffs on Chinese goods and roll back tax credits available to EV buyers in the U.S. He also vowed to reduce or eliminate many vehicle emissions standards under the Environmental Protection Agency, which support the EV industry.

Industry analysts are divided on whether high tariffs on Chinese EVs are advantageous or disadvantageous for Tesla’s business. Some analysts have suggested that Musk could persuade the Trump administration to reduce the tariffs on Chinese EVs and might even temper the overall tariff regime against Chinese goods.

However, Musk is likely to support the elimination of the $7,500 tax credit given to EV buyers in the United States. The absence of tax credits would make it difficult for legacy carmakers to introduce EV versions of their cars in competition with Tesla.

“As Elon Musk played a very important role in funding Trump’s campaign, he will no doubt have the ear of the U.S. president and play a role that will help shape policies that are advantageous to Tesla and his other businesses,” Bill Russo, founder and CEO of Automobility Limited, a Shanghai-based strategic consulting and investment platform, told VOA.

To be sure, Musk opposed U.S. tariffs on China-made EVs last May. “Neither Tesla nor I asked for these tariffs. In fact, I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good,” Musk said after the Biden administration enhanced tariffs on Chinese EVs.

The question is whether he will continue to oppose tariffs on Chinese EVs after Trump enters the White House. A section of analysts has predicted that Musk would continue this line of argument because China accounts for one-third of Tesla sales.

“Tesla is in China because Elon Musk needs the scale and efficient cost structure of the Chinese supply chain to make the company more competitive around the world,” Russo said.

China makes over 70% of the EV batteries in the world and almost two-thirds of all EVs and related components. “Tariffs make accessing this supply chain more costly, and that does not help Tesla,” he said.

Between January and May this year, Tesla sold almost as many cars in China as it did in the United States. Chinese consumers bought one-third of Tesla cars of all models totaling 513,644. In the same period, the company sold 522,444 vehicles in the U.S.

Wedbush Securities analyst Dan Ives argued that higher tariffs would help Tesla compete better with Chinese EVs in the U.S. market.

“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio etc.) from flooding the U.S. market over the coming years,” Ives said in a note to clients this week.

Taking a different view, Beatrix C. Keim, director of Germany-based Centre Automotive Research, said the next president is unlikely to listen to arguments for reducing tariffs on Chinese EVs.

“There is a 100% tariff for Chinese EVs in place. I don’t think that Trump will weaken this,” she said. The high tariff does not affect Tesla because it does not export cars from its Shanghai plant for the U.S. market, and builds them in the U.S.

Keim said Musk will do whatever serves Tesla’s business in China. “Chinese people are very likely to react emotionally if he is perceived as acting against China’s interest,” she said. “Chinese customers had once blocked the sales of Tesla cars, and this can happen again.”

Musk said last April that he loved the Chinese people.

“I’m a big fan of China. I also have a lot of fans in China. Well, the feelings are reciprocated,” Musk, who has often been described in Chinese social media as a “friend of China,” said in April.

Tesla is set to introduce a new fully self-driving (FSD – Supervised) car in the coming months, though the vehicle’s safety remains under review. Musk must have sufficient influence in both Washington and Beijing to obtain the regulatory approvals necessary to sell it.

“China is likely to approve FSD as it would like to show goodwill toward foreign technology,” Russo said. However, Tesla’s FSD may have a limited market in China where local manufacturers play a much bigger role.

Keim said Tesla’s FSD might not face regulatory challenges in Europe, but it may be difficult for it to find enough customers in the face of local competition.

One of the questions that is often asked is whether China would retaliate by imposing higher tariffs on American goods, including Tesla.

“This is very unlikely, as Tesla has invested in China and is used as an example of how foreign brands are still welcome in China, and Tesla is held up as a benchmark for Chinese companies to measure against,” Russo said.

“Killing competition is not viewed as healthy for the forward development of the Chinese automakers. This is in stark contrast to the way the U.S. has acted so far.”
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