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PX Group wins ‘landmark’ Teesside biomass contract

Saltend Chemicals Park-owner PX Group has been awarded an operations and maintenance (O&M) contract for the Tees Renewable Energy Plant (Tees REP). The facility, which is located in Tees Valley, is one of the world’s largest purpose-built pellet biomass power plants, according to PX Group’s announcement. It has the capacity to generate 299 MW of […]

Saltend Chemicals Park-owner PX Group has been awarded an operations and maintenance (O&M) contract for the Tees Renewable Energy Plant (Tees REP).

The facility, which is located in Tees Valley, is one of the world’s largest purpose-built pellet biomass power plants, according to PX Group’s announcement. It has the capacity to generate 299 MW of electricity, or 2.3 TWh per year, equivalent to powering 600,000 homes.

Tees REP is owned and operated by MGT Teesside, which was acquired by Australian investor Macquarie Group and Danish pension fund PKA in 2016 on a 50:50 basis. On its website, MGT says the plant uses co-products from timberland that is primarily for growing saw-timber for its biomass pellets. In order to meet sustainability criteria regulated by Ofgem the biomass is traced from point of origin, though the website does not provide further details.

However, previous announcements from several years ago have said that the feedstock would be sourced from sustainable forestry projects developed by the MGT team and partners in North and South America, as well as the Baltics. US-based Enviva Wilmington Holdings firmed up a 15-year offtake agreement with Tees REP in 2016 for nearly 1m tonnes per year (tpy) of wood pellets.

The plant was initially expected to enter service in 2020 but ran into delays during construction. Although it is reported to have begun generating electricity in 2022, it subsequently experienced technical challenges that have led to outages at the facility.

PX Group, a portfolio company of private equity firm Ara Partners, is taking over O&M at Tees REP following a prior collaboration through its PX Engineering division, which provided consultancy services to the plant during its commissioning phase.

PX operates the St Fergus Gas plant in Peterhead and the Teesside Gas processing plant on behalf of owners, North Sea Midstream Partners (NSMP). It also manages the Holbrook and the Widmerpool biomass plants for owner Gren, a Finnish investor that entered the UK market with the acquisition of 11 waste and biomass-fueled assets in 2023.

“It is a landmark moment for PX Group to take on the operations and maintenance of the largest new-build biomass plant in the world and a transformative moment for the entire regional energy sector,” said PX chief operating officer Dave Thompson.

MGT’s chief executive Ian Coxon said that PX Group’s “extensive expertise in safely managing large-scale green energy projects, combined with its proven success in operating other biomass sites” makes it the “ideal partner” to conduct O&M at Tees REP.

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Nvidia partners with cybersecurity vendors for real-time monitoring

Unlike conventional offerings that rely on intrusive methods or software agents, BlueField-3 DPUs function as a virtual security overlay. They inspect network traffic and safeguard host integrity without disrupting operations. Other packages rely on tapping devices to access network data, which helps create a map of interconnected devices. But these

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National Grid journeys through time: apprenticeships 20 years apart

Apprenticeships are vital for developing the skills needed to accelerate the delivery of clean energy infrastructure and to help the UK reap the rewards of the energy transition: economic growth, energy security and less exposure to volatile gas prices. But how have apprenticeships in this sector changed over the decades? And what does the future hold for these vital programmes? To explore these questions, two remarkable individuals – Phil Grant and Imogen Munn – share their unique experience of their apprenticeship journeys, two decades apart. Introductions Phil is a network manager at National Grid Electricity Transmission. He completed an advanced modern apprenticeship in electrical/electronic engineering age 16 before joining National Grid on a Higher Apprenticeship scheme, where he also completed a foundation degree in Power Systems. He has been working in the energy industry for over 15 years. Imogen started her apprenticeship in 2023 and is a second-year higher apprentice at National Grid, studying to become an electrical power plant protection and commissioning engineer. She has already been to university and has a degree in Intercultural Communication and Business Management. What do you think employers can do to make sure apprentices thrive? Imogen: For me, it’s support. It can be daunting to travel to a new site, for example, but the experience has given me important life skills such as communicating with all sorts of professionals from different backgrounds. Having the support of the team around me as I got used to doing this was really key. Mentors who have joined the business in the same way are great at helping apprentices as they understand the pressures we face. Phil: Time with more experienced team members is really important. Apprentices are keen to learn and get on in their careers and they need support from those in the sector, particularly

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Pennsylvania Gov. Shapiro sues Trump administration, citing frozen IRA funding

Federal agencies are unlawfully restricting Pennsylvania agencies from accessing funding for programs like Solar For All and greenhouse gas emissions mitigation, said state Gov. Josh Shapiro, D, in a lawsuit filed Thursday. “Since around January 27, 2025, federal agencies have restricted Pennsylvania agencies’ ability to access funding for grant programs that, in total, obligated over $3.1 billion to Pennsylvania for fiscal years 2022 to 2026,” the lawsuit says. This funding includes $156 million for the Inflation Reduction Act’s Solar for All program, which the lawsuit cites as an example of a grant award where the state has already executed an agreement for a subaward. The state has “an agreement is in place with the Philadelphia Green Capital Corporation to subaward about $70 million,” according to the suit. “Many of these grant programs have deadlines by which Commonwealth agencies must use their grant award,” the lawsuit says. “Nevertheless, federal agencies are now unilaterally and arbitrarily suspending or restricting Commonwealth agencies’ access to the congressionally appropriated grant funds that have been committed to them.” President Donald Trump’s first-day executive order Unleashing American Energy directed that “all agencies shall immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 or the Infrastructure Investment and Jobs Act,” but the plaintiffs argue that a unilateral suspension of state funds already appropriated and obligated by Congress violates the U.S. Constitution.  The suit was filed in the U.S. District Court for the Eastern District of Pennsylvania. Shapiro, the Pennsylvania Department of Environmental Protection, or DEP, the Pennsylvania Department of Conservation and Natural Resources, the Pennsylvania Department of Transportation, and the Pennsylvania Department of Community and Economic Development are named as plaintiffs. Shapiro is the first governor to initiate a lawsuit against the Trump administration over the funding freeze, but Kentucky Gov. Andy Beshear, D, on

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PX Group wins ‘landmark’ Teesside biomass contract

Saltend Chemicals Park-owner PX Group has been awarded an operations and maintenance (O&M) contract for the Tees Renewable Energy Plant (Tees REP). The facility, which is located in Tees Valley, is one of the world’s largest purpose-built pellet biomass power plants, according to PX Group’s announcement. It has the capacity to generate 299 MW of electricity, or 2.3 TWh per year, equivalent to powering 600,000 homes. Tees REP is owned and operated by MGT Teesside, which was acquired by Australian investor Macquarie Group and Danish pension fund PKA in 2016 on a 50:50 basis. On its website, MGT says the plant uses co-products from timberland that is primarily for growing saw-timber for its biomass pellets. In order to meet sustainability criteria regulated by Ofgem the biomass is traced from point of origin, though the website does not provide further details. However, previous announcements from several years ago have said that the feedstock would be sourced from sustainable forestry projects developed by the MGT team and partners in North and South America, as well as the Baltics. US-based Enviva Wilmington Holdings firmed up a 15-year offtake agreement with Tees REP in 2016 for nearly 1m tonnes per year (tpy) of wood pellets. The plant was initially expected to enter service in 2020 but ran into delays during construction. Although it is reported to have begun generating electricity in 2022, it subsequently experienced technical challenges that have led to outages at the facility. PX Group, a portfolio company of private equity firm Ara Partners, is taking over O&M at Tees REP following a prior collaboration through its PX Engineering division, which provided consultancy services to the plant during its commissioning phase. PX operates the St Fergus Gas plant in Peterhead and the Teesside Gas processing plant on behalf of owners, North Sea

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New Jersey residential customers face 20% bill hikes, driven by PJM capacity prices: BPU

New Jersey’s residential customers face electricity bill hikes of up to 20% beginning in June based on the results of a just-held electricity supply auction, the New Jersey Board of Public Utilities said Wednesday. The results of the “Basic Generation Service” annual auction are mainly driven by the PJM Interconnection’s most recent capacity auction, according to Christine Guhl-Sadovy, BPU president. Increasing electricity demand and a lack of new power supplies due to lagging generation interconnection are also factors in the auction’s results, she said in a press release. The Basic Generation Service auction helps set the cost of electricity for most New Jersey residents and many businesses for a 12-month period starting June 1, the BPU said. PJM’s capacity auction in July cleared at record-setting prices, according to Brian Lipman, director for the Division of Rate Counsel, which represents utility ratepayers. “While some of that is due to an anticipated increase in the demand for electricity, most of the increase is due to PJM’s failure to fix its market rules or timely interconnect new generation supply,” Lipman said in the press release. “The Board’s authority is limited at the federal and regional level, but must carefully examine every state-level filing before it with an eye towards affordability.” PJM’s last capacity auction sparked complaints at the Federal Energy Regulatory Commission by ratepayer advocates and others as well as proposals by PJM to change its capacity auction rules and to bring more power supplies online. New Jersey Gov. Phil Murphy joined other governors in pressing PJM for rule changes that would protect ratepayers from rising costs in upcoming capacity auctions.  The BPU estimates that monthly electric bills for Public Service Electric and Gas residential customers will increase by 17.2% on average as a result of the agency’s electricity supply auction. The agency

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Petrobras Sells First Biofuel-Blend VLSFO in Singapore

State-owned energy company Petróleo Brasileiro S.A. (Petrobras) completed its first sale of very low sulfur fuel oil (VLSFO) with 24 percent renewable content in the Asian bunker market. The company said in a media release that it sold the VLSFO with Golden Island, a licensed bunker supplier in Singapore, noting that the sale was made in early February, for delivery before the end of the month. The product sold by Petrobras Singapore consists of a mixture comprising 76 percent mineral fuel oil, primarily obtained from Petrobras refineries, and 24 percent used cooking oil methyl ester (UCOME), a biofuel created from the processing of used cooking oil (UCO) sourced locally, the company said. It added that Petrobras Singapore holds the ISCC EU certification, “which guarantees that its product meets the strict sustainability criteria that accompany the biofuel logistics chain involved in the process”. For the formulation, Petrobras said it used the facilities of the Jurong Port Universal Terminal, where it has a lease agreement for fuel oil and B24 tanks. The process of supplying bunkers with renewable content adheres to the same operational procedures used for 100 percent mineral bunkers, primarily utilizing smaller vessels to load the product at the terminal and deliver it to the consuming ship, Petrobras said. “The commercialization of VLSFO with 24 percent renewable content in the Asian market is in line with Petrobras’ strategy of developing new products towards a low-carbon market, innovating to generate value for the business, and enabling solutions in new energy and decarbonization”, Claudio Schlosser,  Petrobras’ Director of Logistics, Commercialization and Markets, said. The first VLFSO sale in the Asian bunker market comes only days after the company reported that it had hit all its production targets for the year 2024, set out in its 2024-2028+ Strategic Plan, within the ±4 percent

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USA Compression Doubles Q4 Profit Year on Year

USA Compression Partners LP reported a net income of $25.4 million in the fourth quarter of 2024, doubling the net income reported in the corresponding quarter a year prior. The company noted that its revenues hit a record high in the fourth quarter of 2024, reaching $245.9 million, which compares to $225 million reported in Q3, 2023. “Our fourth-quarter financial results included another consecutive quarter of record-setting revenues and Adjusted EBITDA, as well as record-setting Distributable Cash Flow and Distributable Cash Flow Coverage. These financial results were driven by improved operational efficiencies as we again achieved record average revenue per-horsepower of $20.85 and record revenue-generating horsepower of 3.56 million, which continues to reflect the tight contract compression service space”, Clint Green, USA Compression’s President and Chief Executive Officer, said. USA Compression’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the fourth quarter of 2024 reached $155.5 million, versus $138.6 million in the fourth quarter of 2023. “We believe the macro backdrop continues to be favorable in the near- and medium-term. We expect the price of oil to remain constructive and continue to drive growth in associated gas volumes, particularly in the Permian”, Green said. “We believe our assets in Texas, Oklahoma, and Louisiana will benefit from anticipated growth in natural gas volumes necessary to support increased LNG and pipeline exports along the Gulf Coast, as well as the electrification of everything, driven by AI and data center demand”, he added. According to Green, USA Compression anticipates an expansion capital range of $120 million to $140 million with a refocus on contracted new horsepower unit additions that will be largely back-end loaded for the year. “Additionally, we expect the Energy Transfer shared services model to begin taking effect at the outset of 2025 and anticipate a reduction in back-office

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Deep Diving on DeepSeek: AI Disruption and the Future of Liquid Cooling

We know that the data center industry is currently undergoing a period of rapid transformation, driven by the increasing demands of artificial intelligence (AI) workloads and evolving cooling technologies. And it appears that the recent emergence of DeepSeek, a Chinese AI startup, alongside supply chain issues for NVIDIA’s next-generation GB200 AI chips, may be prompting data center operators to reconsider their cooling strategies. Angela Taylor, Chief of Staff at LiquidStack, provided insights to Data Center Frontier on these developments, outlining potential shifts in the industry and the future of liquid cooling adoption. DeepSeek’s Market Entry and Supply Chain Disruptions Taylor told DCF, “DeepSeek’s entry into the market, combined with NVIDIA’s GB200 supply chain delays, is giving data center operators a lot to think about.” At issue here is how DeepSeek’s R1 chatbot came out of the box positioned an energy-efficient AI model that reportedly requires significantly less power than many of its competitors. This development raises questions about whether current data center cooling infrastructures are adequate, particularly as AI workloads become more specialized and diverse. At the same time, NVIDIA’s highly anticipated GB200 NVL72 AI servers, designed to handle next-generation AI workloads, are reportedly facing supply chain bottlenecks. Advanced design requirements, particularly for high-bandwidth memory (HBM) and power-efficient cooling systems, have delayed shipments, with peak availability now expected between Q2 and Q3 of 2025.  This combination of a new AI player and delayed hardware supply has created uncertainty, compelling data center operators to reconsider their near-term cooling infrastructure investments. A Temporary Slowdown in AI Data Center Retrofits? Taylor also observed, “We may see a short-term slowdown in AI data center retrofits as operators assess whether air cooling can now meet their needs.” The efficiency of DeepSeek’s AI models suggests that some AI workloads may require less power and generate less heat, making air

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Georgia Follows Ohio’s Lead in Moving Energy Costs to Data Centers

The rule also mandates that any new contracts between Georgia Power and large-load customers exceeding 100 MW be submitted to the PSC for review. This provision ensures regulatory oversight and transparency in agreements that could significantly impact the state’s power grid and ratepayers. Commissioner Lauren “Bubba” McDonald points out that this is one of a number of actions that the PSC is planning to protect ratepayers, and that the PSC’s 2025 Integrated Resource Plan will further address data center power usage. Keeping Ahead of Anticipated Energy Demand This regulatory change reflects Georgia’s proactive approach to managing the increasing energy demands associated with the state’s growing data center industry, aiming to balance economic development with the interests of all electricity consumers. Georgia Power has been trying very hard to develop generation capacity to meet it’s expected usage pattern, but the demand is increasing at an incredible rate. In their projection for increased energy demand, the 2022 number was 400 MW by 2030. A year later, in their 2023 Integrated Resource Plan, the anticipated increase had grown to 6600 MW by 2030. Georgia Power recently brought online two new nuclear reactors at the Vogtle Electric Generating Plant, significantly increasing its nuclear generation capacity giving the four unit power generation station a capacity of over 4.5 GW. This development has contributed to a shift in Georgia’s energy mix, with clean energy sources surpassing fossil fuels for the first time. But despite the commitment to nuclear power, the company is also in the process of developing three new power plants at the Yates Steam Generating Plant. According to the AJC newspaper, regulators had approved the construction of fossil fuel power, approving natural gas and oil-fired power plants. Designed as “peaker” plants to come online at times of increased the demand, the power plants will

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Chevron, GE Vernova, Engine No.1 Join Race to Co-Locate Natural Gas Plants for U.S. Data Centers

Other Recent Natural Gas Developments for Data Centers As of February 2025, the data center industry has seen a host of significant developments in natural gas plant technologies and strategic partnerships aimed at meeting the escalating energy demands driven by AI and cloud computing. In addition to the partnership between Chevron, Engine No. 1, and GE Vernova, other consequential initiatives include the following: ExxonMobil’s Entry into the Electricity Market ExxonMobil has announced plans to build natural gas-fired power plants to supply electricity to AI data centers. The company intends to leverage carbon capture and storage technology to minimize emissions, positioning its natural gas solutions as competitive alternatives to nuclear power. This announcement in particular seemed to herald a notable shift in industry as fossil fuel companies venture into the electricity market to meet the rising demand for low-carbon power. Powerconnex Inc.’s Natural Gas Plant in Ohio An Ohio data center in New Albany, developed by Powerconnex Inc., plans to construct a natural gas-fired power plant on-site to meet its electricity needs amidst the AI industry’s increasing energy demands. The New Albany Energy Center is expected to generate up to 120 megawatts (MW) of electricity, with construction beginning in Q4 2025 and operations commencing by Q1 2026. Crusoe and Kalina Distributed Power Partnership in Alberta, Canada AI data center developer Crusoe has entered into a multi-year framework agreement with Kalina Distributed Power to develop multiple co-located AI data centers powered by natural gas power plants in Alberta, Canada. Crusoe will own and operate the data centers, purchasing power from three Kalina-owned 170 MW gas-fired power plants through 15-year Power Purchase Agreements (PPAs). Entergy’s Natural Gas Power Plants for Data Centers Entergy plans to deploy three new natural gas power plants, providing over 2,200 MW of energy over 15 years, pending approval

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Podcast: Phill Lawson-Shanks, Chief Innovation Officer, Aligned Data Centers

In the latest episode of the Data Center Frontier Show podcast, DCF Editor-in-Chief Matt Vincent sits down with Phill Lawson-Shanks, Chief Innovation Officer at Aligned Data Centers, for a wide-ranging discussion that touches on some of the most pressing trends and challenges shaping the future of the data center industry. From the role of nuclear energy and natural gas in addressing the sector’s growing power demands, to the rapid expansion of Aligned’s operations in Latin America (LATAM), in the course of the podcast Lawson-Shanks provides deep insight into where the industry is headed. Scaling Sustainability: Tracking Embodied Carbon and Scope 3 Emissions A key focus of the conversation is sustainability, where Aligned continues to push boundaries in carbon tracking and energy efficiency. Lawson-Shanks highlights the company’s commitment to monitoring embodied carbon—an effort that began four years ago and has since positioned Aligned as an industry leader. “We co-authored and helped found the Climate Accord with iMasons—taking sustainability to a whole new level,” he notes, emphasizing how Aligned is now extending its carbon traceability standards to ODATA’s facilities in LATAM. By implementing lifecycle assessments (LCAs) and tracking Scope 3 emissions, Aligned aims to provide clients with a detailed breakdown of their environmental impact. “The North American market is still behind in lifecycle assessments and environmental product declarations. Where gaps exist, we look for adjacencies and highlight them—helping move the industry forward,” Lawson-Shanks explains. The Nuclear Moment: A Game-Changer for Data Center Power One of the most compelling segments of the discussion revolves around the growing interest in nuclear energy—particularly small modular reactors (SMRs) and microreactors—as a viable long-term power solution for data centers. Lawson-Shanks describes the recent industry buzz surrounding Oklo’s announcement of a 12-gigawatt deployment with Switch as a significant milestone, calling the move “inevitable.” “There are dozens of nuclear

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Talen Energy Continues Behind-the-Meter Power Fight for AWS Data Center Campus

Talen Energy filed suit on January 28th against the Federal Energy Regulatory Commission (FERC)’s November 2024 ruling to prevent the company from finalizing their power purchase agreement with Amazon Web Services (AWS).   The rejection of the original agreement marked a pivotal development in the United States’ energy policy and data center operations alongside technological advances. Various sectors such as renewable energy investment, data center expansion, grid reliability, and corporate sustainability planning will feel the impact of this ruling. It seems that the primary concerns of FERC were the lack of transparency about the implementation plans, and whether or not the deal would raise consumer prices on power. FERC had also denied a rehearing request from Talen which has resulted in this filing with the Fifth Circuit Court of Appeals. Background on the Talen-AWS Power Agreement As a major player in the cloud services industry under Amazon’s umbrella, AWS continues to rapidly build its infrastructure to address the increasing demand for cloud computing services. The expansion of AWS includes building data centers which need massive energy consumption. In its Fourth Quarter 2024 financial results, AWS reported significant developments related to data centers and infrastructure. The company achieved net sales of $28.8 billion in Q4 2024, marking a 19% increase from the same quarter in 2023. Operating income for AWS also rose to $10.6 billion, up from $7.2 billion in Q4 2023. AWS also announced a $10 billion investment to build two data center complexes in Mississippi, the largest capital investment in the state’s history, expected to create at least 1,000 jobs. AWS has also pledged to achieve 100% renewable energy for its operations by 2025 as part of Amazon’s wider environmental commitment. For its part, the Pennsylvania-based energy company Talen Energy maintains a varied portfolio of generation assets which combines both traditional

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As Intel Stumbles, AMD Sees Significant Growth In Its Data Center and AI Business

Meanwhile, high performance computing (HPC) and supercomputing have been big wins for AMD with El Capitan. The supercomputer at Lawerence Livermore National Laboratory has the recent distinction becoming the second AMD powered supercomputer to pass the exascale performance threshold and hitting #1 on the most recent Top500 supercomputer list. What’s Going On With Intel? In December 2024, CEO Pat Gelsinger was ousted amid dissatisfaction with the pace of his turnaround strategy. Interim co-CEOs David Zinsner and Michelle Johnston Holthaus have assumed leadership as the company searches for a permanent successor. This leadership instability has raised concerns about Intel’s strategic direction, particularly in its efforts to establish a contract chip manufacturing business. In the third quarter of 2024, AMD surpssed Intel’s data center and AI group’s earnings of $3.3 billion in the same period. In the AI chip market, Intel has struggled to keep pace with Nvidia. The company canceled plans for its Falcon Shores GPU accelerator and has seen weak demand for its Gaudi AI accelerator chip. At the same time, AMD has seen significant success with its Instinct family of GPUs. In the server CPU segment, Intel has delayed its efficiency-focused Clearwater Forest server CPU to 2026, while its 18A process is performing well. Further, Intel is preparing a high-core-count server CPU, Granite Rapids, slated for release in 2025, aiming to match AMD’s core counts for the first time since 2017. Market analysts expect continued market share loses to AMD in PC and Server, where Intel formerly dominated, as reflected  by the company’s 4% market share loss, and AMD picking up that market share. While Intel is focusing on managing operating expenses and refocusing their efforts, having shed underperforming units over the last 18 months, Intel faces significant market challenges. What Does the Future Hold for AMD? AMD EVP,

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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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