Day: January 26, 2026

Data centers are the physical internet

Building new data centers has become highly controversial. This massive public debate suffers from a major confusion in that what data centers do is seldom mentioned, except that they do AI, which is also controversial.

Two technicians working in a high-tech data center filled with glowing server racks. One technician is seated on the floor, using a laptop, while the other is in the background. The environment is illuminated with blue and purple lights, highlighting the technology.

From CFACT

By David Wojick

A futuristic data center aisle lined with server racks, illuminated by blue lights, leading toward a bright light at the end.

Building new data centers has become highly controversial. This massive public debate suffers from a major confusion in that what data centers do is seldom mentioned, except that they do AI, which is also controversial.

The vague name “data centers” itself contributes to the confusion. It sounds like they just store a lot of data, and what good is that?

In reality, they should be called internet centers, because much of the internet’s essential processing occurs there. Internet processing is the primary function of data centers. You cannot logically love the internet and hate data centers as they are the same thing. A data center is a chunk of the internet in a box.

The big problem is that most people have no idea how the internet works, so here is a highly simplified look at it.

The core process is called packet switching, and it is amazing. It was originally developed as a “bomb proof” defense communication technology because message traffic takes no fixed route that can be knocked out.

To take a simple case, let’s say you email someone an Acrobat document. You might think it just travels to them like physical mail, but it is very different. First, the email and the document are broken down into small pieces called packets of data. Keep in mind that to a computer everything is just a structured bunch of ones and zeros, so it can readily be taken apart and put back together.

Then, come specialized computers called routers, which data centers are packed with. The sending computer puts out a call for available routers, which respond from many data centers. It picks one and sends it a packet. This process continues until all the packets have been sent to routers. These routers repeat this forwarding process until all the packets reach the final destination. Here the computer reassembles the email and the document so it can be viewed.

The immense value of this complex technology is that it does not require dedicated lines from sender to receiver. This routing process is also true for looking at and communicating with World Wide Web stuff that is running on a server computer somewhere. The web page you are looking at is sitting as ones and zeros on a server somewhere, sending you a picture version of itself.

Data centers are where most of the internet’s routers, switches, and servers are housed. The internet comes in big boxes. So, while you might not want a big box of internet in your neighborhood, you cannot reasonably use the internet and say data centers are a bad thing.

As for AI, it is not the first big technology to make the internet grow rapidly over the last fifty years. Personal computers and smart phones are two prior examples.

AI is extremely useful for certain internet tasks, such as searching and analyzing large numbers of documents. It saves me a lot of search time that I can then spend doing more research. AI can greatly improve the productivity of certain tedious tasks. Its growth is certain.

Mind you, the tremendous rapid growth in data centers being touted and causing great anxiety is likely a bubble of hyperbole. Like the dot-com investment bubble that burst in 2000, the projected growth is impossible. Growth will be sharply constrained by available electricity generating capacity.

But in the meantime, the public debate will no doubt continue. It would help if people understood that data centers are primarily the home of the physical internet, which needs to keep growing.

Calling data centers “internet centers” might help the policy debate.

Are Green Energy Subsidies Driving California’s Plan to Expropriate the Wealthy?

Soaring energy bills, a political crisis, and an insane plan to expropriate wealth creators who drive the Californian Economy.

A man in a suit passionately speaks into a megaphone with a speech bubble stating 'We must act now!', set against a backdrop of smoke and fire.

From Watts Up With That?

Essay by Eric Worrall

A cartoonish man in a blue hat with 'MAKE AMERICA CALIFORNIA' and a blue shirt labeled 'NEWSOM 2028' giving a thumbs up, set against a backdrop of flames and a burned landscape.

Soaring energy bills, a political crisis, and an insane plan to expropriate wealth creators who drive the Californian Economy.

The tax;

Explaining California’s billionaire tax: The proposals, the backlash and the exodus

By Queenie Wong
Staff Writer Follow
Jan. 19, 2026, 9:59 AM PT

The battle over a new tax on California’s billionaires is set to heat up in the coming months as citizens spar over whether the state should squeeze its ultra-rich to better serve its ordinary residents. 

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Under the Billionaire Tax Act, Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth. The Service Employees International Union-United Healthcare Workers West, the union behind the act, said the measure would raise much-needed money for healthcare, education and food assistance programs.

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Which billionaires are already distancing themselves from California?

Google co-founders Larry Page and Sergey Brin

Google is still headquartered in California, but December filings to the California Secretary of State show other companies tied to Page and Brin recently converted out of the state.

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Palantir co-founder Peter Thiel

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Oracle co-founder and Chief Technology Officer Larry Ellison

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DoorDash co-founder and Chief Technology Officer Andy Fang 

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Palo Alto-based venture capitalist Chamath Palihapitiya estimates that the lost revenues from the billionaires who have already left the state would lead to more losses in tax revenues than gained by the new tax.

…Read more: https://www.latimes.com/business/story/2026-01-19/explaining-californias-billionaire-tax-proposals-backlash-exodus

Why does California need so much money in a hurry? The following might offer an explanation;

Governor Newsom signs historic package of bipartisan legislation saving billions on electric bills, stabilizing gas market and cutting pollution

Sep 19, 2025

New laws will provide California families up to $60 billion in electricity bill refunds

What you need to know: The Governor joined legislative leaders and advocates and signed major legislation that promises to bring down electricity costs, stabilize the petroleum market and slash air pollution. 

SAN FRANCISCO – Governor Gavin Newsom today signed sweeping bipartisan reforms to California’s world-leading climate policy that promise to save Californians billions of dollars on energy costs. The Governor’s action comes as the Trump administration continues its efforts to gut decades-old, bipartisan American clean air protections and derail critical climate progress.

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“I just signed into law the biggest electricity bill refunds in a decade — up to $60 billion to help bring down costs for California families. Millions of Californians will soon start saving billions on their energy costs, and the savings don’t stop there – we’re stabilizing the state’s gasoline supply to avert severe price spikes at the pump and we’re making it easier to build the abundant clean energy we need to keep bills lower. On top of all that, we’re doubling down on our best tool to combat Trump’s assaults on clean air – Cap-and-Invest – by making polluters pay for projects that support our most impacted communities.”

…Read more: https://www.gov.ca.gov/2025/09/19/governor-newsom-signs-historic-package-of-bipartisan-legislation-saving-billions-on-electric-bills-stabilizing-gas-market-and-cutting-pollution/

Why are electricity prices becoming such a political flashpoint?

Why California’s Electricity Bills Keep Rising: The Hidden Cost of Rooftop Solar Subsidies

Aug. 12, 2025 6:35 AM PT

Californians pay the second-highest electricity rates in the nation. A growing body of evidence has concluded that the No. 1 driver of higher bills is a decades-old policy that forces customers to pay for their neighbors’ rooftop solar systems.

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According to the California Public Advocates Office, this cost shift was $8.5 billion in 2024 alone, up from $3.4 billion just three years ago.

Households without solar now pay as much as 27% more on their electricity bills to cover the subsidies provided to about 1.6 million solar-equipped homes.

…Read more: https://www.latimes.com/specialsupplements/story/2025-08-12/hidden-cost-of-rooftop-solar-subsidies

I’m not suggesting rooftop solar subsidies are the sole cause of California’s fiscal crisis, California’s economic mismanagement is far broader than just the subsidies. But signing a bill to throw $60 billion at a self-inflicted cost of living crisis probably won’t help fix the state’s financial problems.

California’s 2025 state government deficit was $18 billion dollars. This year’s budget is projected to be $35 billion deficit. What do you think the 2026 California deficit will be?

Will future historians look back on the coming collapse of California, and identify a desperate attempt to subsidise soaring green energy prices as the final straw which broke the state economy? Or will historians focus on the wealth expropriation bill as the trigger for the collapse? What do you think?

Miliband Admits He’ll Buy Chinese Solar Panels Made With Slave Labour

The Energy Secretary has refused to rule out buying solar panels made with slave labour for his new warm homes roll out – despite saying the UK must ‘diversify’ its supply chains away from China.

Close-up of solar panels with a Chinese flag waving in the background against a blue sky.

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

Illustration of solar farms with two electrical control boxes featuring a red switch and a Chinese flag, set against a backdrop of solar panels.

Anything goes where Net Zero is concerned!

From the Mail:

Headline from a news article discussing Ed Miliband's statement about the UK sourcing solar panel products despite issues with supply chains.

The Energy Secretary has refused to rule out buying solar panels made with slave labour for his new warm homes roll out – despite saying the UK must ‘diversify’ its supply chains away from China.

The Government’s Warm Homes Plan, announced on Tuesday, will see millions of families able to access solar panels, batteries, heat pumps and insulation which could reduce the amount they pay for energy.

Under the plans, backed with £15billion of taxpayer cash, homeowners can apply for low and zero-interest loans to install solar panels on their homes in what the Government has dubbed a ‘rooftop revolution‘.

But concerns have been raised about fitting five million British homes with China-sourced solar panels – which have been linked with slave labour abuses against Uyghur Muslims in China’s Xinjiang province.

In April, the Government was forced to amend legislation requiring GB Energy, Britain’s state-owned energy company, to ensure slavery and human trafficking is not taking place within its supply chain.

But Ed Miliband on Wednesday refused to impose the same ban on solar panels purchased for its Warm Homes Plan – which could see five million homes fit with the technology – under questioning in the Commons Chamber.

When asked to confirm that ‘not a single aspect’ of the Warm Homes Plan would rely on slave labour supply chains, the Energy Secretary replied the Government has already ‘raised standards’ in GB Energy – and blamed the Tories for the ‘system’ Labour had inherited.

Ed Miliband on Wednesday refused to impose a ban on solar panels purchased for its Warm Homes Plan – which could see five million homes fit with the technology.

Daily Mail Online has the full story.

Regardless of Miliband’s warblings, there is no alternative but to buy solar panels from China, who make 80% of the world’s output of panels and as much as 95% of some of the key components.

He knows that and he also knows that China will not alter its use of Uighur slave labour, just because he says so.

Indeed, the requirement for GB Energy to “ensure slavery and human trafficking is not taking place within its supply chain” will have no effect either. Yes, they might get a piece of paper from the Chinese Government, certifying this – but that’s all it will be, a piece of paper.

It’s bad enough having to accept human rights abuses elsewhere in the world, which we have no control over. It is simply immoral for Miliband to be spending taxpayer money on products that we don’t need and that are beyond a doubt made with slave labour.

A solar panel field with a sign that reads 'Great British Energy' in front of numerous photovoltaic solar panels under a cloudy sky.

Australians to Receive Free Midday Grid Solar Power – But Don’t Charge your EV

Australia’s high solar penetration often leads to excess midday power, sometimes resulting in negative wholesale prices or curtailment (wasted solar output). To utilize this better and share benefits more equitably (including with renters or non-solar households), the government is mandating that electricity retailers offer plans with at least 3 hours of free electricity daily, typically around midday (e.g., 11am–2pm or similar windows when solar output peaks).

A dramatic scene depicting a transformer explosion surrounded by lightning strikes and billowing smoke at night.

Australia’s high solar penetration often leads to excess midday power, sometimes resulting in negative wholesale prices or curtailment (wasted solar output). To utilize this better and share benefits more equitably (including with renters or non-solar households), the government is mandating that electricity retailers offer plans with at least 3 hours of free electricity daily, typically around midday (e.g., 11am–2pm or similar windows when solar output peaks).

Electrical transformers emitting arcs of electricity surrounded by trees.

_________________________________________________________________________________________________________

From Watts Up With That?

Essay by Eric Worrall

A bright blue explosion occurring in an industrial area, with smoke rising from the ground amidst electrical equipment.

h/t Observa – Happy exploding transformer day: “… very high levels of consumption during the free-power period … may lead to increases in network costs. …”

Shared solar: Labor’s “free power” plan to have daily cap to stop abuse by EV and home battery owners

Giles Parkinson
Jan 23, 2026

Any thoughts that Labor’s proposed Solar share offer would deliver unlimited free power to fill their EVs and home batteries have been dashed, with the federal government proposing a 24 kilowatt hour cap.

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Federal energy minister Chris Bowen wants retailers to be required to offer three hours of free power to customers, enabling households who do not have access to their own rooftop solar to share in the benefits of the solar surplus that regularly pushes wholesale electricity prices below zero.

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However, there are caveats. Among the six proposed “guidelines” for the Australian Energy Regulator to consider as it weighs up the design of the scheme, the government proposes a “reasonable use” criterion that would cap the daily consumption of free power to 24 kWh.

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Submissions also highlighted that, in the absence of specific safeguards, very high levels of consumption during the free-power period could create localised network impacts that may lead to increases in network costs.

…Read more: https://reneweconomy.com.au/shared-solar-labors-free-power-plan-to-have-daily-cap-to-stop-abuse-by-ev-and-home-battery-owners/

You couldn’t make this up. If say half or even a quarter of the population took up this offer, supplying those people would require concentrating an entire day’s worth of electricity into a few hours. No existing grid could take that kind of load.

Entire suburbs would black out as overload breakers tripped. If you are lucky. Otherwise, you might lose a few transformers and power lines, along with anyone unlucky enough to be walking underneath when the grid started falling apart.

Let’s hope the government finds a free supply of high voltage electrical cable, to go with their free supply of electricity.

Any retailer who tries to recover costs by say jacking up evening electricity tariffs would likely face immediate price controls. The current federal government has proven to be very quick on the trigger with market interventions when their disastrous energy policies cause visible problems – which when exercised lead to even greater problems, more borrowed money subsidies and payouts to producers to cover up the mess.

Surprise! Australia’s Green Transition Energy Price Caps are Causing Supply Side Chaos

Maybe politicians should have talked to a few killjoy engineers before getting all excited and announcing policy. But our energy and climate minister Chris Bowen has a track record of not seeking or listening to advice before opening his mouth.

Another Exit: Ultra Low Carbon Solar Alliance

The Ultra Low-Carbon Solar Alliance (ULCSA) was a coalition of solar PV companies, manufacturers, and stakeholders focused on promoting and deploying solar panels with significantly lower carbon footprints- particularly highlighting differences in manufacturing emissions.

A weathered sign in a desert area reads 'Solar Bankruptcies: The New Normal.' with solar panels visible in the background.

The Ultra Low-Carbon Solar Alliance (ULCSA) was a coalition of solar PV companies, manufacturers, and stakeholders focused on promoting and deploying solar panels with significantly lower carbon footprints- particularly highlighting differences in manufacturing emissions.

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A diverse group of professionals poses for a photo outdoors in front of solar panels, engaged in a conference or event.

From The Master Resource

By Robert Bradley Jr.

Group of professionals posing for a photo outdoors in front of solar panels, showcasing a commitment to renewable energy.

“Having achieved our goals, the Alliance believes it is appropriate to sunset the organization and promote Ultra Low Carbon Solar through other channels as we proudly cheer the continued expansion of sustainable low carbon solar manufacturing.”

Don’t sugar coat. The political bubble of solar is losing air, and firms and trade groups are disbanding (see here, here, here, and here). Rooftop solar firms are in disarray with bankruptcies and now law firms helping thousands of customers get out of their long-term solar contracts. (See Appendix A below for a list of solar bankruptcies.)

The latest came from Michael Parr, executive director of ULCSA. who wrote on New Year’s day:

The Ultra Low Carbon Solar Alliance was formed five years ago with a simple but profound mission: education.

Specifically, we sought to help both industry and policy makers understand the significant differences in embodied carbon in solar panels made in China vs. those made in the west; to show solar buyers how they could have substantial impact on global carbon emissions by how they purchase solar panels; and to create a tool to allow buyers to easily specify low carbon solar panels backed by detailed solar supply chain and carbon footprint evaluations with robust third party validation.

It was our belief that today’s solar industry, empowered with knowledge and tools created through the Alliance, could reduce carbon emissions and create a more globally diversified, sustainable and reliable solar supply chain. We have succeeded in our mission.

In the relatively few years since the formation of the Alliance, the market has come to recognize differences in embodied carbon.

The Global Electronics Council launched the EPEAT Ultra Low Carbon Solar standard and ecolabel, and major manufacturers have completed the rigorous process to earn the ecolabel.

EPEAT registered module producers are sold out, with long-term supply contracts.

The US solar manufacturing sector has been reborn and has grown dramatically across key elements of the industry, to the point that we now have the ability to make more solar panels than we consume.

We are making solar wafers and cells in the US for the first time in decades, and the production of critical materials like module frames, backsheet and glass are expanding domestically. Importantly, each expansion of the US and European solar supply chain lowers the carbon footprint of solar manufacturing.

The Alliance is proud of its accomplishments, and we would like to thank our members for their commitment to improving the sustainability of the solar industry as well as their leadership in driving that vision into the marketplace.

We would also like to thank all of our global collaborators who embraced our mission and helped us bring it to reality. Ultra Low Carbon Solar is now firmly embedded in the industry, and buyers now have multiple routes to obtain sustainable solar panels.

Having achieved our goals, the Alliance believes it is appropriate to sunset the organization and promote Ultra Low Carbon Solar through other channels as we proudly cheer the continued expansion of sustainable low carbon solar manufacturing.

Kudos comments followed from alligned groups such as the Global Electronics Council; European Solar Manufacturing Council; Harvard University’s Professor of Human Rights Laura Murphy (‘just thinking of the good the alliance did for human rights, even if as collateral’); Jo McGraw of Solar Media.

Again, look beyond the happy talk. An artificial political bubble is being cut down to size as consumers rebel and the ecological costs become more obvious.

Appendix A: Major US Solar Bankruptcies:

Major Solar Bankruptcies as of June 2025 include:

California Company Closures:

  • Altair Solar
  • ASA – American Solar Advantage – CA
  • Bratton Solar- CA
  • Canapoy Energy – CA
  • Charged Up Energy – CA
  • Enver Solar – CA
  • Harness Power – CA
  • GCI Solar – CA
  • Green Nrg – CA
  • Kuubix Energy – CA
  • Peak Power USA – CA
  • Penguin Home- CA
  • Polar Solar – CA
  • Professional Roofing and Solar – CA
  • Sigora Home Solar – CA
  • Solsun USA – CA
  • Solar 360
  • Solar Advantage – CA
  • Sullivan Solar Power – CA
  • Sungrade Solar – CA
  • SunPower – CA
  • Sunstor Solar – CA
  • RGS Energy – CA
  • Solar Spectrum – CA
  • Sunworks, Inc. – CA
  • Swell Energy – CA
  • United Solar Inc. – CA

Texas Company Closures:

  • Alternative Solar
  • American Sun
  • Daybreak Solar Power
  • Envirosolar
  • Hitech Solar
  • Integrity Solar
  • Next Energy
  • Nivo Solar
  • Speir Innovations
  • TES Home Solar
  • Texas Solar Broker LLC
  • Texas Solar Integrated LLC
  • Verisolar
  • Vulcan Solar

Other States:

  • 3D Solar – Florida
  • AAA Certified Solar – Nevada
  • Accept Solar – MA
  • ACE Solar Systems – AZ
  • Arizona Solar Concepts – AZ
  • Brimma Solar – WA
  • Code Green Solar – NJ
  • EcoMark Solar – CO
  • Elan Solar – UT
  • Electriq Power – FL
  • Encor Solar – UT
  • Gulf South Solar – LA
  • Moxie Solar – IA
  • Refresh Energy Group – CO
  • Saveco Solar – UT
  • Solar Is Freedom – OH
  • Solar Titan USA – TN
  • SolarDot – FL
  • Solarworks – AZ
  • Solular, LLC – NJ
  • Utah Solar Group – UT
  • Voltage Solar Power – FL
  • Zenernet – AZ
A landscape featuring numerous solar panels on a reflective surface, with large, rusted structures in the background under a dramatic sky and a bright sunset.

Morano from Davos: “Trump did a masterclass of gutting the entire agenda of the WEF”

Marc Morano, the executive editor of ClimateDepot.com, speaking from the World Economic Forum (WEF) annual meeting in Davos in January 2026.

News reporter speaking outdoors at the World Economic Forum with a focus on the climate agenda, featuring buildings in the background and a snowy landscape.

From CFACT

Marc Morano, the executive editor of ClimateDepot.com, speaking from the World Economic Forum (WEF) annual meeting in Davos in January 2026.

Morano explain that President Trump’s actions and influence have effectively dismantled or sidelined key elements of the WEF’s agenda- particularly its emphasis on climate policies, net-zero transitions, and related globalist initiatives.

Key points from Morano’s comments:

He described Trump’s approach as a “masterclass” in “gutting” the WEF’s entire agenda, suggesting the forum’s traditional priorities (like aggressive climate action) were overshadowed or diminished.

He noted that climate discussions took a back seat this year due to “reality hitting,” including factors like overreach on COVID policies, Trump’s political resurgence, and practical concerns (e.g., energy demands from AI data centers).

Germany’s Natural Gas Crisis Escalates … One Storage Site Near Empty …Government Silent

Several large storage sites in Bavaria are at very low fill levels, significantly below legal or expected thresholds for this time of year during the heating season.
Wolfersberg (a key site): under 6% (practically empty in some reports).
Inzenham-West: under 19% in recent data.

A large metallic storage tank with pipes and valves, situated outdoors under a blue sky with clouds. A clock is mounted on a post nearby.

Several large storage sites in Bavaria are at very low fill levels, significantly below legal or expected thresholds for this time of year during the heating season.

Wolfersberg (a key site): under 6% (practically empty in some reports).

Inzenham-West: under 19% in recent data.

Despite these regional lows in Bavaria, experts and operators generally assess no immediate supply crisis for Germany as a whole—national levels remain sufficient for a standard winter, supported by diversified imports (LNG, Norway, etc.) and milder periods slowing depletion.

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Industrial storage tanks against a cloudy sky.

From No Trick Zone

By P Gosselin

Two men in hard hats stand in front of gas storage equipment at the Wolfsersberg gas facility, highlighting concerns about low gas storage levels in Bavaria.

Germany’s shift to green energy has really turned into a nightmare.

It’s the dead of winter and already the first heating gas storage facility in Germany is near empty, only 6% full!

Industrial gas storage tanks and pipelines covered in snow, surrounded by a fence and trees in the background.
Storage facility. Symbol image generated by Grok

Germany desperately needs to pray for a warm February miracle if the country is to avoid an energy disaster and a state of emergency. 

Currently, there’s no danger to private households as their supply is guaranteed. The risks, however, are for industry. Should storage levels drop to even more dangerously low levels, then energy-intensive industry will be forced to shut down — a step that would cripple the already struggling German economy.

Bavarian gas storage levels at critical lows

No place is as critical as in the southern state of Bavaria. Apollo News describes a worrisome situation regarding Bavarian natural gas storage facilities, where fill levels are now significantly below legal requirements.

While the Federal Government mandates a fill level of 40% for Bavarian storage facilities by February 1st (due to their strategic importance for Southern Germany), the actual average in Bavaria is currently just 25%.

Only 6% full – virtually empty!

The situation is particularly dramatic at the Wolfersberg storage site, which is filled to less than 6%, making it effectively empty. Other sites like Inzenham-West (under 19%) and Bavaria’s largest facility, Breitbrunn (approx. 20%), are also far below the target.

Germany-wide levels dip below 38%

Across Germany, the situation is hardly better. Total storage levels have fallen below 38%. According to the “Natural Gas Emergency Plan,” levels below 40% are officially classified as “critical.” Yet the German government and media continue to keep silent on the issue, which is only spawning and fueling conspiracy theories. There are reports that the government has stopped updating storage levels.

Industrial hubs face shutdowns

Since Germany’s largest storage facilities are located in the North (Lower Saxony/North Rhine-Westphalia), the Upper Bavarian sites (representing about one-eighth of total capacity) are essential for supplying the industrial hubs of Southern Germany.

In neighboring Austria, storage levels remain significantly higher at approximately 50%.