Power is Knowledge

The Grid Can’t Keep Up

In the movie Scarface, Tony Montana famously explains, “In this country, you gotta make the money first. Then when you get the money, you get the power.” It turns out that in the age of AI data centers, even money can’t always buy one power. The existing grid doesn’t have enough supply to keep up with demand. That’s forcing many deep-pocketed tech companies to get high on their own power supplies as they add more and more data centers. “Most tech titans would be happy to trade their DIY sourcing for the ability to plug into the electric grid. But supply-chain snarls and permitting challenges are complicating everything, and the U.S. isn’t building transmission infrastructure or power plants fast enough to meet the sudden surge in demand for electricity. America should be adding about 80 gigawatts of new power generation capacity a year to keep pace with AI as well as cloud computing, crypto, industrial demand and electrification trends, according to consulting and technology firm ICF. It’s currently building less than 65 gigawatts. That gap alone is enough electricity to power two Manhattans during the hottest parts of summer.” WSJ (Gift Article): AI Data Centers, Desperate for Electricity, Are Building Their Own Power Plan. “Planning and building large-scale power plants or expanding grid infrastructure takes years. The process, normally gummed up, is even more difficult lately. Projects of all kinds face hurdles obtaining permits, equipment shortages, a labor crunch and rising costs, exacerbated by Trump’s tariffs on steel and aluminum, as well as some copper products.”

+ The new and growing demand on our aging energy grid isn’t just a challenge for tech power players looking to add more computers to their racks. It’s also limiting supply and jacking up prices for consumers. “Each state has unique energy needs, with a variety of factors contributing to costs. But common factors include rising supplier rates, consumer demand, regional regulations and a lag in clean-energy solutions. One major contributor is the growth of A.I. data centers, which use a huge amount of electricity to power nonstop computing. Energy providers have responded by seeking more energy at higher prices and transferring the costs to consumers.” NYT (Gift Article): This Summer’s Stunning Electric Bill: For at least a fifth of U.S. households, the increases have likely been financially burdensome. The richest companies are finding a way around their energy challenges. The poorest Americans are footing the bill. Reminds me of another Tony Montana quote: “You know what capitalism is? Getting f**ked.”

2

The Long Harm of the Law

“It was a common enough example of second-term Trump theater-in-the-Oval. But it was also a diorama of the administration’s lopsided power dynamic between a president bent on controlling federal law enforcement and appointees unwilling or unable to fight for the historic independence of their institutions.” Trump keeps naming new targets for his weaponized institutions to target. And they keep doing it. As Jack Smith, one of his latest targets, explains: “Nothing like what we see now has ever gone on.” So we sure as hell better not normalize the behavior (or our coverage of it). NYT (Gift Article): Trump Names More Foes He Wants Prosecuted as Bondi and Patel Look On.

+ Here’s a recent conversation between two of Trump’s enemies. Andrew Weissmann and Jack Smith.

+ Trump isn’t just turning formerly independent government institutions against individuals he considers enemies. He’s looking to wipe out the infrastructure of organizations that oppose him (often by promoting democratic norms). WSJ Gift Article): Trump Team Plans IRS Overhaul to Enable Pursuit of Left-Leaning Groups. “The Trump administration is preparing sweeping changes at the Internal Revenue Service that would allow the agency to pursue criminal inquiries of left-leaning groups more easily, according to people familiar with the matter. A senior IRS official involved in the effort has drawn up a list of potential targets that includes major Democratic donors.”

3

Stacking the Cards

“As American consumers become more economically stratified, the business of issuing credit cards to the rich has turned into big-game hunting for banks. The richest 10% of US households—those making roughly $250,000 or more—now account for almost half the country’s consumer purchases.” That’s one big reason why credit card companies are targeting big spenders in the perk war of 2025. Amanda Mull in Bloomberg (Gift Article): Inside the Credit Card Battle to Win America’s Richest Shoppers.

4

I’m Pacing Myself

Five Times Sit to Stand. Maximal Walking Speed. According to Gretchen Reynolds in WaPo (Gift Article), these are the 2 quick tests can tell you if you’re as fit as an 80-year-old elite athlete. I live in an extremely hilly neighborhood. I don’t know if my 80-plus year-old neighbors who regularly pass my beagles and me on the way up hills are elite athletes, but they seem like it compared to us.

+ 80-year-old grandmother becomes oldest woman to finish the Ironman World Championship. (She was 59 before she even learned how to swim.) I could probably complete an Ironman at 80. If I started the race now.

5

Extra, Extra

Ven Diagram: “The helicopters were engaged in training exercises, according to a U.S. official, that could serve as preparation for expanded conflict against alleged drug traffickers, including potentially missions inside Venezuela.” A day after Trump announced covert operations against Venezuela, WaPo(Gift Article) reports U.S. Special Operations helicopters near Venezuela expand Caribbean mission.

+ Hamas or Menos? Uniformed Hamas militants are back on the streets in Gaza, where they’ve carried out videotaped, public executions. As Jonathan Chait reports in The Atlantic (Gift Article), “the president seems undisturbed by the terrorist group’s murderous campaign against dissidents. In fact, he seems to admire it.” Why Is Trump Making Excuses for Hamas? “They did take out a couple of gangs that were very bad—very, very bad gangs ... And they did take ’em out. And they killed a number of gang members. And that didn’t bother me much, to be honest with you. That’s okay. A couple of very bad gangs.”

+ Honky-Tonk: Give me your tired, your poor, your huddled masses yearning to breathe free. Scratch that. Give me the white people. “The Trump administration is considering a radical overhaul of the U.S. refugee system that would slash the program to its bare bones while giving preference to English speakers, white South Africans and Europeans who oppose migration.”

+ The Wind Beneath Our Wings: “The administration and its allies in Congress have rolled back clean energy tax credits and thrown up roadblocks to renewable energy projects — efforts that, in the long run, will mean fewer wind and solar farms will be built than otherwise would have.” But for now, there’s a race to get those credits before they expire. Which means “President Trump is poised to preside over a renewable energy boom. Yes, really.” NYT (Gift Article): Renewable Energy Is Booming Despite Trump’s Efforts to Slow It.

+ It’s Buyback Time: “Over the past five years, those five largest companies spent more than $1 trillion on stock buybacks and dividends, according to a new analysis from Oxfam—more than five times what they paid in federal taxes over the same time period.” The biggest U.S. companies on the S&P 500 spent more than $1 trillion on stock buybacks and dividends in 2024.

6

Bottom of the News

“The J.M. Smucker Co. is suing Trader Joe’s, alleging the grocery chain’s new frozen peanut butter and jelly sandwiches are too similar to Smucker’s Uncrustables in their design and packaging.” (Seems like a lot TJ’s products are a little too similar to existing brands. But maybe imitating the great Uncrustable is biting off too much.)

+ Meanwhile, Death Wish Coffee Sues Liquid Death Over The Right To Death Itself.