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RRC Adopts Significant Overhaul of Oil, Gas Waste Management Rules

In a statement posted on its website recently, the Texas Railroad Commission (RRC) announced that it has “adopted a significant overhaul of rules regulating oil and gas waste management facilities in Texas”. The development comes “after extensive reviews of public comments and stakeholder input”, the RRC outlined in the statement, which highlighted that the group’s […]

In a statement posted on its website recently, the Texas Railroad Commission (RRC) announced that it has “adopted a significant overhaul of rules regulating oil and gas waste management facilities in Texas”.

The development comes “after extensive reviews of public comments and stakeholder input”, the RRC outlined in the statement, which highlighted that the group’s commissioners voted to adopt the new rules at an open meeting on December 17.

The RRC pointed out in the statement that this is “the first overhaul of RRC’s waste management rules in four decades”. It said the new rules help the RRC continue to safeguard groundwater and surface water while adapting to modern waste management practices, such as recycling produced water, and recent advancements in production methods.

In its statement, the RRC noted that the regulations “cover waste from oil and gas operations … as well as waste from other operations for which the legislature has given the RRC jurisdiction including geothermal, carbon sequestration, and brine mining wells”.

The RRC said the rule updates requirements on the design, construction, operation, monitoring, and closure of waste management units and stated that it will improve the RRC’s ability to track and collect data on oilfield waste transported throughout Texas. It also highlighted in the statement that the new rules “codify informal guidance that RRC experts have developed over the course of several decades to give operators and the public certainty on how regulations of waste management facilities are carried out”.

“The adopted rules will enhance the RRC’s oversight of waste management facilities,” the RRC said in the statement.

“The agency now has staff dedicated to environmental permit compliance – a team that reviews waste management facility reports and inspections and follows-up on those reviews to quickly rectify any issues,” it added.

In the statement, RRC Chairman Christi Craddick highlighted that “the oil and gas industry has evolved dramatically since the 1980s”.

“After a years-long process, and with thoughtful and thorough deliberation from the public, agency experts, and industry stakeholders, I am proud to report the Railroad Commission has passed its first overhaul of waste management rules in 40 years,” Craddick added.

“I sincerely appreciate our staff for their hard work in modernizing our agency’s rules to reflect current waste management practices and new advancements in production methods, allowing industry to continue driving economic growth while upholding our commitment to protecting public safety and the environment,” Craddick added.

RRC Commissioner Wayne Christian said in the statement, “it’s been 40 years since these rules were last updated, and the oil and gas industry has grown and changed in ways unimaginable from back then”.

“Updating these regulations was a slow and deliberate process, ensuring we listened to everyone impacted – small operators, landowners, royalty owners, and waste management companies,” he added.

“I personally hosted meetings with small and mid-sized producers, who shared real concerns about the initial draft, especially regarding pits. We took their feedback seriously, revised the rules and created a version that protects small businesses while safeguarding our environment,” Christian revealed.

“The final draft received overwhelming support from industry stakeholders,” he went on to state.

RRC Commissioner Jim Wright said in the statement, “by passing this measure today, the Railroad Commission and the State of Texas have taken a significant step forward to align our practices and procedures to account for the considerable changes the industry has experienced in the 40 years since this rule was last reformed”.

“Thanks to the tremendous effort and dedication of our staff here at the Railroad Commission and the input and participation of the public and stakeholder groups, we have been able to modernize these rules in a way which aligns with the Railroad Commission’s mission, and which will serve our state and citizens well,” he added.

In a statement posted on its website on September 3, the RRC said it continued to take public input on “proposed rules to revamp the agency’s critical rules regulating waste management facilities in Texas”. That statement highlighted that the public comment period started on August 16 and finished on September 30.

A statement published on the RRC’s site on August 16 announced that RRC commissioners “voted to publish for public comment proposed amendments that are critical to updating the agency’s rules regulating waste management facilities”.

“This proposed rule reflects the hard work and dedication of agency staff and stakeholders on this critical rule,” Craddick said in that statement.

“I am grateful to Commissioner Wright for his leadership on this important matter and look forward to reviewing public input as we work toward final adoption of our solid waste rule amendments,” Craddick added.

In that statement, Wright said, “today’s draft rule represents an important step forward with respect to the Railroad Commission’s expectations regarding waste management practices”.

“It has been 40 years since the Commission last made significant updates to this rule, and today’s proposal is an acknowledgment that considerable changes have occurred in terms of technology and industry practices now being utilized,” he added.

“I thank the Railroad Commission staff for their tireless work on behalf of our state and look forward to reviewing the public’s feedback on this important issue as we work towards final adoption,” he continued.

Also in that statement, Christian said, “right next to oil and gas, water is becoming perhaps the most valuable natural resource in Texas”.

“As an EPA commended agency for ground water protection, the Commission takes safeguarding water extremely seriously, and this rule update makes certain that industry is taking every precaution possible toward protecting the public,” he added.

“I’m proud of the hard work by our commission staff and look forward to this rule continuing to bolster the RRC’s historic legacy as a world-class regulatory agency,” he said.

The RRC was established in 1891 under a constitutional and legislative mandate to prevent discrimination in railroad charges and establish reasonable tariffs, the organization notes on its website, adding that it is the oldest regulatory agency in the state and one of the oldest of its kind in the nation. 

The RRC no longer has any jurisdiction or authority over railroads in Texas, the site highlights. It is the state agency with primary regulatory jurisdiction over the oil and natural gas industry, pipeline transporters, natural gas and hazardous liquid pipeline industry, natural gas utilities, the LP-gas industry, critical natural gas infrastructure, and coal and uranium surface mining operations, the site notes.

The Commission exists under provisions of the Texas Constitution and exercises its statutory responsibilities under state and federal laws for regulation and enforcement of the state’s energy industries, it goes on to state.

The Commission also has regulatory and enforcement responsibilities under federal law including the Surface Coal Mining Control and Reclamation Act, Safe Drinking Water Act, Pipeline Safety Acts, Resource Conservation Recovery Act, and Clean Water Act, the site highlights.

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2025 global network outage report and internet health check

Two notable outages On December 30, Neustar, a U.S. based technology service provider headquartered in Sterling, VA, experienced an outage that impacted multiple downstream providers, as well as Neustar customers within multiple regions, including the U.S., Mexico, Taiwan, Singapore, Canada, the U.K., Spain, Romania, Germany, Luxembourg, France, Costa Rica, Ireland,

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The biggest AI flops of 2024

The past 12 months have been undeniably busy for those working in AI. There have been more successful product launches than we can count, and even Nobel Prizes. But it hasn’t always been smooth sailing. AI is an unpredictable technology, and the increasing availability of generative models has led people

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Exxon Sues California AG, Environmental Groups Over ‘Smear’

Exxon Mobil Corp. filed a lawsuit alleging that California Attorney General Rob Bonta and several environmental groups made defamatory comments about the oil company’s ability to recycle plastic.  Exxon accused Bonta, the Sierra Group and others of making “false accusations” about its advanced recycling process. Exxon said in a suit filed in federal court in Texas Monday that the process works and the claims have damaged its relationship with customers.  “With apparently no appreciation for the irony of their claim, Mr. Bonta and his cohorts are now engaging in reverse greenwashing,” according to the complaint. “While posing under the banner of environmentalism, they do damage to genuine recycling programs and to meaningful innovation.” Bonta, a Democrat, sued Exxon on behalf of California in September over claims of public nuisance, water pollution and misleading environmental marketing. In a statement at the time, Bonta alleged the company “falsely promoted all plastic as recyclable” when in fact the US recycling rate has never exceeded 9%. Exxon and other manufacturers are also facing plastics recycling suits by a Kansas county and by residents in four states. In recent months, Exxon has shown a willingness to use the courts to defend its reputation and legal rights when attacked by critics, especially those focused on the environment. Last year, the company sued two of its own investors to remove environmental proposals from the ballot at its annual meeting.  Exxon sought to continue the suit even after the proposals were withdrawn, claiming to be a “forceful advocate” for shareholder rights, but the case was eventually dismissed.  The company claims Bonta made the anti-Exxon statements in a “deliberate smear campaign” in his “personal capacity to drive up donations and publicity for his political campaign.” It also accuses one of the defendants, the Intergenerational Environment Justice Fund Ltd., of serving “private foreign interests” through its relationship

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WTI Climbs as US Freeze Fuels Demand

Oil pushed higher as a cold front in the US and signs of a tighter market countered technical signals that crude’s rally may be overdone. West Texas Intermediate advanced almost 1% to settle above $74 a barrel, buoyed by frigid weather in the US that’s boosting demand for heating fuel and increasing the risk of freeze-offs in production areas. And while crude fell for the first time in six sessions on Monday after failing to breach the $75 psychological level, some internal market gauges have strengthened in recent days. Adding to signs of a tighter supply-demand balance, Middle Eastern oil markets have been firmer in recent weeks as refiners in China sought alternatives to Iranian and Russian crude. At the same time Russian data show that its oil production was below its OPEC+ output target last month, another sign of limited supplies. Meanwhile in China, ports in the eastern province of Shandong, the top destination for Iranian crude, were urged to prevent US-sanctioned tankers from docking at their berths. Crude markets have witnessed a robust start to the year as a result of technical buying after prices broke out of a monthslong range. Still, the relative strength index shows prices are trading at overbought levels, a reading that indicates crude was due for a pullback, and many analysts continue to warn of an oversupply later in the year. “Whilst renewed strength cannot be ruled out in the immediate future should freezing temperatures persist, the sudden change in sentiment yesterday afternoon insinuates that a protracted rally will be difficult to sustain without fundamental changes in economic prospects or the global oil balance,” said Tamas Varga, an analyst at brokerage PVM. Oil Prices: WTI for February delivery climbed 0.9% to settle at $74.25 a barrel. Brent for March delivery rose 1% to

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DOE says 90% of US wind turbines are recyclable

Around 90% of the mass of a decommissioned wind turbine is made up of recyclable steel and concrete, which have well-established recycling chains, says a Monday report released by the Department of Energy — but the remaining 10% will require “new strategies and innovative recycling methods.” “Towers, foundations, and steel-based subcomponents in drivetrains offer the greatest potential currently to be successfully recycled, whereas blades, generators, and nacelle covers are likely to prove more difficult,” DOE said in a release. “Recovering critical materials and alloying elements from generators and power electronics, such as nickel, cobalt, and zinc, will be crucial in establishing a circular economy for wind systems.” The report suggested a combination of measures to improve recyclability, including:  “Improved end-of-life decommissioning collection and scrap sorting practices.  Strategic siting of recycling facilities.  Expanded and improved recovery and recycling infrastructure.  Substitution of hard-to-recycle and critical materials with more easily separable and affordable materials, improved component designs and manufacturing techniques, or the development of modular system components.  Optimized properties of recovered materials for second-life applications.  Greater access to wind energy waste streams and the equipment required to disassemble wind energy components.” The report was conducted by a team of researchers led by DOE’s National Renewable Energy Laboratory, with support from Oak Ridge National Laboratory and Sandia National Laboratories, DOE said. It is meant to support the DOE’s Wind Energy Recycling Research, Development, and Demonstration program. Blade recycling has consistently been a barrier to a circular economy for wind energy due to blades including epoxy resins, which require the use of nonrenewable resources like petroleum to create and are almost impossible to break down and reuse. In 2023, NREL researchers announced promising initial results from a prototype blade that used plant-based resin. DOE’s release said that some short-term strategies for decommissioning wind turbines include blade

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Petition aims to halt Hill of Fare wind farm application

Campaigners are petitioning for the site of the proposed Hill of Fare wind farm in Aberdeenshire in a bid to stop the project. The Hill of Fare Windfarm Information Group called for Dunecht Estates, where the wind farm will be based, to get the project’s developer, RES, to withdraw its application. RES is looking to develop the 105.6MW less than four miles from Banchory. Under its current plan, the wind farm will use a total of 16 turbines, with heights between 590ft and 656ft. The petition said that local community groups have raised concerns about the project, including all six community councils surrounding the site, along with over 1,700 individual objections. A previous survey of local community councils found that 71% of people attending previous Hill of Fare wind farm consultations were against the project. Stakeholders have warned that the height of the turbines could damage the appearance of the local area. Last year, Aberdeenshire Council raised objections to the project, including risks to the area’s cultural heritage and potential impacts on water supplies at Dunecht Estate and Braeside. This means that the proposal will now undergo a public local inquiry to gather additional information on the objections before the Scottish government makes a decision. According to the petition, an inquiry would place a financial burden on the local authority. In addition, the campaigners raised issues with the size of a proposed community benefit fund associated with the project. They said that RES’s estimated annual revenues from the wind farm are likely to be £20 million to £25m while Dunecht Estates could make £1m-2.5m per year in rent. This compares to offering £528,000 per year in the community benefit fund. Scottish Conservative MSP for Aberdeenshire West Alexander Burnett said: “This petition highlights the strength of anger and concern towards this

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Organisations urge government to “recommit” to gas boiler phase-out

An association of energy companies has urged the UK government “to recommit” to phasing out gas boilers by 2035, warning that the future of the country’s heating should be “clean, secure, and a driver of economic growth”. Caroline Bragg, chief executive of the Association for Decentralised Energy (ADE), said the trade body is “disappointed” by reports that the government will scrap the phase-out of gas boilers by 2035. “We are disappointed to hear reports that plans to phase out fossil boilers by 2035 may not be going ahead,” said Bragg. “We know to meet our net zero targets heat decarbonisation needs to happen at pace — this can only occur with strong signals to industry and consumers. Weak signals and watered-down policy will jeopardise billions in green heating investment at the time when we need it the most.” The trade association, which represents more than 160 organisations in the energy sector, warned that scrapping an already delayed ban on gas boilers “threatens to derail the UK’s journey to net zero”. Heating UK homes is estimated to account for 18% of the UK’s emissions, according to a report by the National Audit Office. If the government reneges on the phase-out of gas boilers, the trade body said it would put “billions in private investment at risk” that could otherwise be ploughed into heat pumps, heat networks and other innovative technologies. A turnaround on the gas boiler ban would also “undermine investor confidence and risk locking the UK into dependence on foreign fossil fuels,” the organisation said. “Should the government decide to scrap the 2035 ban on the installation of new gas boilers it will be a backward step that jeopardises the UK’s progress toward achieving its net zero targets,” added residential clean heating solution provider Aira UK’s chief executive Daniel Särefjord.

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Future Grangemouth opportunities ‘very exciting’, Scottish energy minister says

Scotland’s energy minister Gillian Martin has said future commercial opportunities for the Grangemouth oil refinery site are “very exciting”, despite the looming loss of around 400 jobs. Grangemouth owner Petroineos is planning to close Scotland’s only oil refinery later this year and transition the site into a fuel import terminal. Petroineos – a joint venture between PetroChina and Ineos – has blamed market pressures and the energy transition for its decision to close the refinery. Ahead of the closure, the Scottish and UK governments committed £1.6 million to ‘Project Willow’, which is assessing potential low-carbon options at Grangemouth. Future industrial uses proposed for the site include the production of sustainable aviation fuel (SAF), as well as green hydrogen derivatives. However, Martin warned much of the opportunity at Grangemouth, particularly around hydrogen production, hinges on Scotland’s Acorn carbon capture and storage (CCS) project receiving UK government funding as part of its Track-2 process. Grangemouth future The acting cabinet secretary for net zero and energy made the comments during a Holyrood committee meeting on the UK government’s GB Energy Bill. Asked by Scottish Labour MSP Monica Lennon for an update on efforts to find a way forward for Grangemouth, and any potential role for GB Energy, Martin said she is due to review the results of the Project Willow study as early as next week. “Once that’s reviewed and that study is published, it’s [the Scottish government’s] aim to work with the UK government [and] Petroineos, but also any potential investors that we have in the UK and Scotland on some of the opportunities that there will be for that site,” Martin said. © Supplied by ASV Photography Ltd.Scottish Energy Minister Gillian Martin addresses the Offshore Europe conference in 2023. “There are about four or five particular streams of opportunity in terms

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Point2 aims to cut data center power consumption through smart cabling

The P1B121 is suitable for a range of data center configurations, including in-rack and adjacent rack setups such as top-of-rack switch-to-server connectivity, rack-to-rack connectivity, and accelerator-to-accelerator compute fabric connectivity. The 112G PAM4 Smart Retimer requires only 3.0W of power consumption per chip, so 6 W total for each cable. That’s half of the 25 W of traditional networking cables. It reduces cable power and cooling demands while achieving an impressive chip latency of 3ns, which is 20 times lower than DSP-based PAM4 Retimers currently available. That can add up, Kuo notes, as a rack can have anywhere from 30 to 150 cables in it. Now multiply each cable by 12 W instead of 25 W and you’ve got a significant savings. There is also savings on weight. To compensate for signal loss, some cable makers simply use more copper, making cabling thicker. Having retimer chips allows you to extend the cable link without having to go to a thicker gauge copper wiring. The Point2 retimer supports the current speeds of 400 Gb/s as well as the upcoming 800 Gb products coming to market and the 1.6 Tb in the coming years, said Kuo. Point2 customers are designing cables now and will be delivering them in the first half of 2025, he added.

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How adding capacity to a network could reduce IT costs

Higher capacity throughout the network means less congestion. It’s old-think, they say, to assume that if you have faster LAN connections to users and servers, you’ll admit more traffic and congest trunks. “Applications determine traffic,” one CIO pointed out. “The network doesn’t suck data into it at the interface. Applications push it.” Faster connections mean less congestion, which means fewer complaints, and more alternate paths to take without traffic delay and loss, which also reduces complaints. In fact, anything that creates packet loss, outages, even latency, creates complaints, and addressing complaints is a big source of opex. The complexity comes in because network speed impacts user/application quality of experience in multiple ways, ways beyond the obvious congestion impacts. When a data packet passes through a switch or router, it’s exposed to two things that can delay it. Congestion is one, but the other is “serialization delay.” This complex-sounding term means that you can’t switch a packet if you don’t have it all, and so every data packet is delayed until it’s all received. The length of that delay is determined by the speed of the connection it arrives on, so fast interfaces always offer better latency, and the delay a given packet experiences is the sum of the serialization delay of each interface it passes through. Application designs, component costs and AI reshape views on network capacity You might wonder why enterprises are starting to look at this capacity-solves-problems point now, versus years or decades earlier. They say there’s both a demand and supply-side answer. On the demand side, increased componentization of applications, including the division of component hosting between data center and cloud, has radically increased the complexity of application workflows. Monolithic applications have simple workflows—input, process, output. Componentized ones have to move messages among the components, and each

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Scorecard: Looking Back at Data Center Frontier’s 2024 Industry Predictions

2.  Rethinking Power on Every Level  PREDICTION:  Utilities are struggling to upgrade transmission networks to support the surging requirement for electricity to power data centers. CBRE recently said that data center construction completion timelines have been extended by 24 to 72 months due to power supply delays. Although the constraints in Northern Virginia have made headlines, power availability has quickly become a global challenge, impacting major markets in Europe and Asia as well as U.S. hubs like Ashburn, Santa Clara, and sections of Dallas and Suburban Chicago. Last year we predicted the rise of on-site power generation, but we’ve yet to truly see this at scale. But data center operators are working on a range of new approaches to power. Expect to see innovations in power continue as data centers seek better visibility into their power sourcing. MASSIVE HIT:  This prediction was a huge “Hit,” as evidenced by 2024 data from leading commercial real estate firms CBRE, JLL, and Cushman & Wakefield, and other sources. Throughout the year, data center operators reported facing significant challenges in securing adequate power from utilities, leading to increased interest in adoption of on-site power generation solutions, as reflected by many industry discussions this year. The bottom line on this prediction might be the release of this year’s DOE-backed report indicating that U.S. data center power demand could nearly triple in the next three years, potentially consuming up to 12% of the country’s electricity, underscoring the urgency for alternative power solutions. In terms of the largest data center markets, VPM and others noted how Dominion Energy is projecting unprecedented energy demand from data centers in Virginia, posing significant challenges for accommodating this industry growth in the coming decades. In a noteable effort to shore up that gap, Dominion Energy, American Electric Power (AEP), and FirstEnergy

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How 2024, the Year That Re-Energized Nuclear Power, Foretells Ongoing ‘New Nuclear’ Developments for Data Centers in 2025

In a world increasingly focused on advanced nuclear technologies and their integration with energy-intensive sectors like data centers, nuclear power could change the way that the world gets its electricity and finally take its place as a clean, renewable, source of power. Evidence of this shift toward nuclear energy and data centers’ role in it came in abundance last year, as the U.S. nuclear energy sector was observed undergoing a sea change with regard to the data center industry. We saw Microsoft, Constellation, AWS, Talen, and Meta with major data center nuclear energy announcements in the Second Half of 2024. With the surge in nuclear stakes has also come a wave of landmark PPAs representing the “new nuclear” industry’s ascendance. To wit, in the latter half of 2024, the data center industry witnessed significant developments concerning “new nuclear” energy integration, specifically in the area of plans for forthcoming nuclear small modular reactor (SMR) deployments by cloud hyperscalers.  Some of the most notable announcements included: Amazon’s Investment in Nuclear Small Modular Reactors (SMRs): October 2024 saw Amazon reveal partnerships with Dominion Energy and X-energy to develop and deploy 5 gigawatts (GW) of nuclear energy, in a bid for future powering of its data centers with carbon-free energy. Google’s SMR Pact with Kairos Power: Also in October 2024, Google announced plans to collaborate with Kairos Power to build up to seven SMRs, providing up to 500 megawatts of power. The first unit is expected to come online by 2030, with the entire project slated for completion by 2035. Oracle’s Gigawatt-Scale SMR Plans: In September 2024, Oracle announced plans to construct a gigawatt-scale data center powered by three small modular reactors (SMRs). Company Founder and CTO Larry Ellison revealed that building permits for these reactors have been secured, and that the project was currently in its design phase. The company said

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Data Center Jobs: Sales and Engineering Jobs Available in Major Markets

Each month Data Center Frontier, in partnership with Pkaza, posts some of the hottest data center career opportunities in the market. Here’s a look at some of the latest data center jobs posted on the Data Center Frontier jobs board, powered by Pkaza Critical Facilities Recruiting. Critical Facilities Operations Electrician Sumner, WAWe also have critical facilities engineer positions available in: Ashburn, VA; Elk Grove Village, IL and Sumner, WA (non-electrician role). This opportunity is working directly with a leading mission-critical data center colo provider. This firm provides data center solutions custom-fit to the requirements of their client’s mission-critical operational facilities. They provide reliability of mission-critical facilities for many of the world’s largest organizations facilities supporting enterprise clients and hyperscale companies. This opportunity provides a career-growth minded role with exciting projects with leading-edge technology and innovation as well as competitive salaries and benefits. Electrical Commissioning Engineer New Albany, OH (Contract or Perm in New Albany Only) This traveling position is also available as a FTE in: Boydton, VA; Richmond, VA; Ashburn, VA; Charlotte, NC; Atlanta, GA; Hampton, GA; Fayetteville, GA; Orlando, FL; Nashville, TN; Des Moines, IA; San Diego, CA; San Jose, CA; Portland, OR; Boardman, OR; Boise, ID; Salt Lake City, UT; Phoenix, AZ; Santa Fe, NM; Dallas, TX; Reno, NV; Chicago, IL or Toronto, ON. *** ALSO looking for a LEAD EE and ME CxA Agents.*** Our client is an engineering design and commissioning company that has a national footprint and specializes in MEP critical facilities design. They provide design, commissioning, consulting and management expertise in the critical facilities space. They have a mindset to provide reliability, energy efficiency, sustainable design and LEED expertise when providing these consulting services for enterprise, colocation and hyperscale companies. This career-growth minded opportunity offers exciting projects with leading-edge technology and innovation as well as

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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