ІНСАЙДЕР УКРАЇНА

ALEXANDRIA, VIRGINIA — Richard Andre Newman thought he would live the rest of his life in his quiet, leafy neighborhood in suburban Virginia. He was born and raised in Bren Mar Park, where children ride their bikes and neighbors wave hello.

But now, as he’s approaching 60, he’s considering selling his Fairfax County home and moving away. That’s because he’s getting a new neighbor: Plaza 500, a 466,000-square-foot data center and an adjacent electrical substation to be built a few hundred feet from townhomes, playgrounds and a community center.

Newman feels helpless to stop it.

“I planned on staying here until I died,” he said, “until this came up.”

The sprawling, windowless warehouses that hold rows of high-speed servers powering almost everything the world does on phones and computers are increasingly becoming fixtures of the American landscape, popping up in towns, cities and suburbs across the United States.

Demand for data centers ballooned in recent years due to the rapid growth of cloud computing and artificial intelligence, and local governments are competing for lucrative deals with big tech companies. But as data centers begin to move into more densely populated areas, abutting homes and schools, parks and recreation centers, some residents are pushing back against the world’s most powerful corporations over concerns about the economic, social and environmental health of their communities.

Tyler Ray, a vocal critic of data centers and leader in the fight against the Virginia project, said the incentives offered are not enough to counteract the consequences of building a facility so close to homes.

“All that we are asking for is, as the county is trying to bring in this data center income, that they are doing it in a way that doesn’t run residents away from their homes,” he said.

Dotting the hills in Northern Virginia

In Northern Virginia, more than 300 data centers dot the rolling hills of the area’s westernmost counties. Cyclists who ride the popular Washington & Old Dominion trail are at times flanked by data centers, and the thousands of commuters who head into the nation’s capital each day can see them in the distance from the Metro.

Plaza 500, one of the latest proposals in the area, is encroaching on neighborhoods like never before, said Newman, who heads a homeowners association in the community.

The pitch from Starwood Capital Group, the private investment firm founded by billionaire Barry Sternlicht, to Fairfax County officials promised a significant property tax boost and, in addition to permanent positions in the data center itself, hundreds of temporary construction and electrical jobs to build the facility.

Tyler Ray and his husband moved to the Bren Pointe community in 2022, hoping to balance proximity to Washington with a desire for green space.

But shortly after the couple moved in, Starwood Capital began scoping out a commercial property near their new home as a possible location for the Plaza 500 project.

When Ray and his neighbors learned of the proposal, they held protests, attended regular county meetings and drew media attention to their concerns to try and stop the development. But their efforts were largely unsuccessful: the Fairfax County Board of Supervisors in September said all newly proposed data centers must adhere to stricter zoning rules, but the Plaza 500 project would be grandfathered in under the old rules.

Ray worries that more data centers in the area could compromise the already stressed power grid: Over 25% of all power produced in Virginia in 2023 went to data centers, a figure that could rise as high as 46% by 2030 if data center growth continues at its current pace. Some estimates also show a mid-sized data center commands the same water usage every day as 1,000 households, prompting concerns over the cost of water. Ray also frets over air quality, as the massive diesel generators that help power the data centers’ hardware send plumes of toxic pollutants into the atmosphere.

A spokesperson for the firm declined to respond to questions for this story.

“I don’t know how a general resident, even someone who has been engaging intently on an issue,” Ray said, “has any chance to go up against the data center industry.”

Local leaders say data centers a financial boon

For local governments, attracting data centers to their municipalities means a financial boon: Virginia Gov. Glenn Youngkin said in 2024 that Virginia’s existing data centers brought in $1 billion in tax revenue, more than the $750 million in tax breaks given to the tech companies that own them in 2023.

For average-sized facilities, data centers offer a small number of direct jobs — often fewer than 100 positions. Google announced recently that its two data centers in Loudoun County, which has about 440,000 residents, created only around 150 direct jobs. But data center advocates argue that the number of indirect jobs like construction, technology support and electrical work make the projects worthwhile. In that same announcement, Google said their investment spurred 2,730 indirect jobs.

Kathy Smith, the vice chair of the Fairfax County Board of Supervisors, voted in favor of the Plaza 500 proposal because, in her estimation, data center growth is inevitable in the region, and Fairfax County should reap the benefits.

“I have a responsibility to step back from what we do and look at the big picture,” Smith said. “Data centers are not going away.”

Amazon data centers welcomed by some in Oregon 

On the other side of the country, in Morrow County, Oregon, Amazon Web Services has built at least five data centers surrounding the 4,200-person town of Boardman, nestled among vast stretches of farmland flecked with mint patches and wind turbines, next to the Columbia river.

Last year, AWS, which is owned by Amazon, paid roughly $34 million in property taxes and fees stipulated in the agreements after receiving a $66 million tax break. The company also paid out $10 million total in two, one-time payments to a community development fund and spent another $1.7 million in charitable donations in the community in 2023.

That money has been instrumental in updating infrastructure and bolstering services for the roughly 12,000-person county, going toward a new ladder fire engine, a school resource officer, police body cameras, and $5,000 grants for homebuyers among other things.

Still, some residents are skeptical of the scale of tax break deals. Suspicions started years ago, when three formerly elected officials allegedly helped approve data center deals while owning a stake in a company that contracted with AWS to provide fiber optic cables for the data centers. In June, they each paid $2,000 to settle an ethics complaint against them.

Those officials are no longer in office. But some remain wary of the relationships between the company and local officials, and raised eyebrows at one of the latest data center deals which gives AWS an estimated $1 billion in tax breaks spread over the 15 years to build five new data centers.

Former county commissioner Jim Doherty described a meeting with AWS officials soon after he was elected to office at an upscale restaurant in Boardman, where large windows opened onto the Columbia River.

The AWS representatives asked what Doherty wanted to accomplish as a commissioner. “They said, ‘Tell us what your dreams are. Tell us what you need. Tell us what we can do for you,'” Doherty recalled. Other former officials have described similar interactions. Doherty said AWS didn’t ask for anything in return, but the exchange left him uneasy.

“We engage with stakeholders in every community where we operate around the world, and part of that outreach is to better understand a community’s goals,” said Kevin Miller, AWS’ Vice President of global data centers. “This helps AWS be a catalyst for communities to achieve those goals, and reflects our ongoing commitment to being good neighbors.”

Doherty and another former county commissioner Melissa Lindsay said they pushed unsuccessfully in 2022 for AWS to pay more in taxes in new data center negotiations. They also lobbied to hire outside counsel to negotiate on their behalf, feeling outgunned by the phalanx of AWS-suited lawyers.

“We didn’t want to blow it up. We didn’t want to run them off,” said Lindsay. “But there were better deals to be made.”

Boardman Mayor Paul Keefer and Police Chief Rick Stokoe say their direct line to AWS allows them to get the most out of the company.

“This road right here? Wouldn’t happen if it wasn’t for AWS,” said Keefer, riding in the passenger seat of Stokoe’s cruiser, pointing out the window at construction workers shifting dirt and laying pavement. Both Keefer and Stokoe have been in positions to vote on whether to authorize tax breaks for AWS.

“These companies would not be here if they weren’t getting some kind of incentive,” Stokoe said. “There wouldn’t be any money to talk about.”
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WASHINGTON — The U.S. House of Representatives is set to vote next week on an annual defense bill that includes just over $3 billion for U.S. telecom companies to remove equipment made by Chinese telecoms firms Huawei and ZTE 000063.SZ from American wireless networks to address security risks.

The 1,800-page text was released late Saturday and includes other provisions aimed at China, including requiring a report on Chinese efforts to evade U.S. national security regulations and an intelligence assessment of the current status of China’s biotechnology capabilities.

The Federal Communications Commission has said removing the insecure equipment is estimated to cost $4.98 billion but Congress previously only approved $1.9 billion for the “rip and replace” program.

Washington has aggressively urged U.S. allies to purge Huawei and other Chinese gear from their wireless networks.

FCC Chair Jessica Rosenworcel last week again called on the U.S. Congress to provide urgent additional funding, saying the program to replace equipment in the networks of 126 carriers faces a $3.08 billion shortfall “putting both our national security and the connectivity of rural consumers who depend on these networks at risk.”

She has warned the lack of funding could result in some rural networks shutting down, which “could eliminate the only provider in some regions” and could threaten 911 service.

Competitive Carriers Association CEO Tim Donovan on Saturday praised the announcement, saying “funding is desperately needed to fulfill the mandate to remove and replace covered equipment and services while maintaining connectivity for tens of millions of Americans.”

In 2019, Congress told the FCC to require U.S. telecoms carriers that receive federal subsidies to purge their networks of Chinese telecoms equipment. The White House in 2023 asked for $3.1 billion for the program.

Senate Commerce Committee chair Maria Cantwell said funding for the program and up to $500 million for regional tech hubs will be covered by funds generated from a one-time spectrum auction by the FCC for advanced wireless spectrum in the band known as AWS-3 to help meet rising spectrum demands of wireless consumers. 
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A federal appeals court in Washington on Friday upheld a law requiring the wildly popular social media app TikTok to be sold to a non-Chinese owner or face closure in the United States by next month. The court cited “persuasive” and “compelling” arguments presented by the federal government that TikTok poses a risk to national security.

The ruling could leave the 170 million Americans who regularly use TikTok without access to a social media platform that has enjoyed explosive global growth in recent years. It could also mean that the millions of Americans who create content for TikTok — some of whom rely on monetizing that content for their livelihood — could be cut off from their audiences.

The government has argued that TikTok presents a unique danger to national security because it collects vast amounts of information about its users, and because the Chinese government ultimately exercises control over its parent company, ByteDance, and over the algorithm that determines what content TikTok users see.

Because ByteDance is in the People’s Republic of China (PRC) it is subject to that country’s laws, including measures requiring private companies to cooperate with government intelligence agencies.

The three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that the government has a compelling interest in taking steps “to counter the PRC’s efforts to collect great quantities of data about tens of millions of Americans” and “to limit the PRC’s ability to manipulate content covertly on the TikTok platform.”

TikTok signals an appeal

TikTok immediately signaled that it would appeal the circuit court’s ruling to the Supreme Court.

In a statement posted to its website, the company said, “The Supreme Court has an established historical record of protecting Americans’ right to free speech, and we expect they will do just that on this important constitutional issue.”

The company said that the law underlying the case “was conceived and pushed through based on inaccurate, flawed and hypothetical information, resulting in outright censorship of the American people,” and warned that it “will silence the voices of over 170 million Americans here in the U.S. and around the world.”

The Supreme Court is not obligated to hear the company’s appeal, and it was not immediately clear that it would do so. If the high court accepts the case, it is possible that it would block the government from enforcing the law until the case is decided.

President-elect Donald Trump, who once supported a TikTok ban before changing his mind during the recent presidential election, has suggested that he will act to save the app when he takes office. However, it is unclear what options he might have for doing that.

Lack of trust

In April, President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act into law. The measure gave TikTok 270 days to find a way to separate itself from ByteDance before a ban on the application would kick in on January 19, 2025.

The federal government made it clear that the only kind of divestiture that it would accept was a complete separation of TikTok from its Chinese parent. The company offered alternatives, and established TikTok U.S. Data Security Inc. (TTUSDS) as a subsidiary in Delaware, to wall off U.S. user data from ByteDance.

However, the government cited instances in which U.S. user data that the company claimed to have shielded from the PRC was, in fact, accessible to ByteDance employees in mainland China. It told the court that it lacked “the requisite trust” that “ByteDance and TTUSDS would comply in good faith” with any arrangement other than complete separation of TikTok and ByteDance.

In Friday’s ruling, the judges wrote, “The court can neither fault nor second-guess the government on these crucial points.”

First Amendment concerns

TikTok and its supporters have claimed that severing TikTok from ByteDance is both practically impossible for technological reasons and legally impossible because the Chinese government will block the sale of the company. Therefore, they claim, the law constitutes a de facto ban and a violation of the guarantee of free speech enshrined in the First Amendment to the Constitution.

In a sign of how seriously the court took the First Amendment arguments, the panel of judges agreed that the law should be subject to “heightened scrutiny,” which the Supreme Court has applied to measures restricting fundamental rights.

In the end, the panel determined that the law satisfies even the most stringent form of “strict scrutiny,” which requires that the government “prove that the restriction furthers a compelling interest and is narrowly tailored to achieve that interest.”

Free speech advocates respond

The decision came under immediate criticism from free speech advocates.

“Although we’re still analyzing the decision, we find it deeply disappointing,” David Greene, civil liberties director at the Electronic Frontier Foundation, said in a statement emailed to VOA. “The court appropriately applied strict scrutiny as we have urged it to. But the strict-scrutiny analysis is lacking, relying heavily on speculation about possible future harms.

“Restricting the free flow of information, even from foreign adversaries, is fundamentally undemocratic,” Greene said. “Until now, the U.S. has championed the free flow of information and called out other nations when they have shut down internet access or banned online communications tools like social media apps.”

George Wang, a staff attorney at the Knight First Amendment Institute at Columbia University, told VOA that the court accorded “a shocking amount of deference” to the government’s claims about the danger TikTok poses to national security.

“We should be really wary whenever we allow the government to use vague national security arguments as a justification to shut down speech,” Wang said. “That’s a tactic of authoritarian regimes, not democracies. It’s usually the job of courts to stand up to the government when it infringes on the constitutional rights of millions of Americans, and I think the D.C. Circuit really didn’t do that today.”

‘A victory for the American people’

Representative Raja Krishnamoorthi, the senior Democrat on the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, and one of the original sponsors of the law requiring TikTok’s divestiture or ban, released a statement Friday praising the court’s decision.

“With today’s opinion, all three branches of government have reached the same conclusion: ByteDance is controlled by the Chinese Communist Party, and TikTok’s ownership by ByteDance is a national security threat that cannot be mitigated through any other means than divestiture,” Krishnamoorthi said.

“Every day that TikTok remains under the Chinese Communist Party’s control is a day that our security is at risk,” Krishnamoorthi added.

Representative John Moolenaar, the committee’s Republican chairman, said in a statement that the ruling was “a victory for the American people and TikTok users, and a loss for the Chinese Communist Party, which will no longer be able to exploit ByteDance’s control over TikTok to undermine our sovereignty, surveil our citizens and threaten our national security.”

Moolenaar also held out hope to the app’s users that access to it may, in the end, be preserved under a Trump presidency.

“I am optimistic that President Trump will facilitate an American takeover of TikTok to allow its continued use in the United States and I look forward to welcoming the app in America under new ownership,” Moolenaar said.
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Using sailing ships to move cargo may be making a comeback. These days, eco-friendly watercraft are equipped with the latest technology. Elena Wolf has the story, narrated by Anna Rice. Camera: Max Avloshenko 
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