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  • Author:
  • Published: May 26th, 2010
  • Category: USA
  • Comments: 6

Carbon Costs Could Add Up for Silicon Valley Companies


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The huge data centers that power the Internet could end up costing companies like Google millions more under a “cap and trade” carbon emissions reduction program.

That’s because most of the nation’s electricity is still produced by coal-fired power plants, and data centers are one of the fastest-growing consumers of electricity.

Google spends approximately $38 million a year on electricity for its data centers nationwide, and a carbon tax could increase that by as much as 50 percent or more.

Even though that money is chump change for Google, the company is aggressively investing in a project dubbed “RE < C,” an effort to create renewable energy sources that are cheaper than coal.

In England, where nearly all electricity comes from coal, a carbon reduction tax has already been implemented and no new data centers have been built.

Suggesting that some companies may simply move their power-hungry operations to other countries.

Jackson West has been noodling micro-hydro to run a server and network in the mountains of Washington.

Related posts:

  1. Silicon Valley Companies Reduce CO2 Emissions
  2. Intel Slashes Carbon Footprint by Over 20%, Reduces Power Costs by $4 Million
  3. Earth Day News: Silicon Valley Company oDesk Reduces CO2 Emissions by 8,300 Tons per Year
  4. Serving up greener data centers
  5. Yahoo redesigns data center, ditches carbon offsets

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6 Responses to “Carbon Costs Could Add Up for Silicon Valley Companies”


  1. MDgreen
    on May 27th, 2010
    @ 7:29 am

    Natural Gas, not coal is the primary fuel source for electricity in the UK.

    I am also curious where the statistic for 50% increases in electricity prices comes from. Projections based on analysis of APA and also experience with the EU ETS (including a December 2009 report from E. On) indicate that the impact of cap and trade mechanisms on end user electricity prices is, while difficult to measure precisely, on the order of 5%.

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