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<v Sarah>A federal court cleared the queue-reform rule—just as states started asking AI data centers how much water they’re drinking.

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<v Matt>This is The Data Center Daily.

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<v Matt>FERC got a win, Aligned’s $40 billion deal closed, and power and water bills just got a lot less theoretical.

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<v Sarah>First up: does this court win unclog the grid queue—or just remove one excuse for keeping it clogged?

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<v Sarah>Energy-Storage.News's William Norman has been tracking it.

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<v Sarah>The DC Circuit upheld FERC Order 2023 on July 31.

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<v Sarah>Interconnection reform now has firmer legal footing: faster study timelines

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<v Sarah>clearer withdrawal penalties

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<v Sarah>and one less court challenge over projects trying to get energized.

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<v Matt>Good. Grid operators and permitting teams finally got a win.

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<v Matt>But the morning after a court ruling, that 1,400-plus-gigawatt queue is still there, and no substation gets built by appellate opinion.

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<v Sarah>Precisely. The ruling makes the process more durable.

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<v Sarah>It doesn’t add a megawatt

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<v Sarah>but it lets Order 2023 keep moving instead of treating it like a regulatory experiment with a lawsuit-shaped expiration date.

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<v Matt>Look at ERCOT's Batch Zero pause in that context: FERC gets judicial backing to clear the national queue

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<v Matt>while Texas adds another audit gate.

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<v Matt>Very efficient, if the product is delay.

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<v Sarah>Emily <00:01:29.306>Ulizio, <00:01:30.076>writing <00:01:30.479>in <00:01:30.630>National <00:01:31.044>Conference <00:01:31.653>of <00:01:31.759>State <00:01:32.083>Legislatures:

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<v Quote>As <00:01:34.022>demand <00:01:34.405>for <00:01:34.569>artificial <00:01:35.054>intelligence <00:01:35.665>and <00:01:35.778>cloud <00:01:36.101>computing <00:01:36.653>continues <00:01:37.112>to <00:01:37.245>grow

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<v Quote>so <00:01:38.253>does <00:01:38.465>the <00:01:38.573>need <00:01:38.805>for <00:01:38.989>data <00:01:39.315>centers—the <00:01:40.495>massive <00:01:40.903>facilities <00:01:41.525>housing <00:01:41.825>the <00:01:41.945>servers <00:01:42.397>that <00:01:42.592>power <00:01:43.112>AI <00:01:43.525>and <00:01:43.665>the <00:01:43.805>cloud.

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<v Quote>These <00:01:45.216>facilities <00:01:45.775>consume <00:01:46.205>a <00:01:46.365>lot <00:01:46.658>of <00:01:46.832>water, <00:01:47.533>primarily <00:01:48.025>for <00:01:48.245>cooling <00:01:48.605>servers <00:01:49.245>and <00:01:49.538>managing <00:01:50.005>the <00:01:50.173>heat <00:01:50.413>generated <00:01:50.898>by <00:01:51.062>computational <00:01:51.877>processes.

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<v Matt>With <00:01:53.041>queue <00:01:53.321>reform <00:01:53.851>cleared <00:01:54.254>by <00:01:54.401>the <00:01:54.588>court

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<v Matt>states <00:01:55.681>are <00:01:55.870>asking <00:01:56.341>another <00:01:56.841>very <00:01:57.225>practical <00:01:57.863>question: <00:01:58.601>before <00:01:59.601>you <00:01:59.778>permit <00:02:00.141>the <00:02:00.281>data <00:02:00.649>hall

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<v Matt>is <00:02:01.441>there <00:02:01.703>actually <00:02:02.281>water <00:02:02.741>for <00:02:03.001>it?

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<v Sarah>NCSL <00:02:05.228>finds <00:02:05.625>lawmakers <00:02:06.228>in <00:02:06.308>at <00:02:06.414>least <00:02:06.761>six <00:02:07.070>states <00:02:07.534>pursuing <00:02:08.014>water-use <00:02:08.577>reporting <00:02:09.134>or <00:02:09.299>disclosure <00:02:09.921>for <00:02:10.105>data <00:02:10.421>centers.

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<v Sarah>Virginia <00:02:11.921>has <00:02:12.081>already <00:02:12.407>signed <00:02:12.721>a <00:02:12.821>law <00:02:13.017>that <00:02:13.134>takes <00:02:13.447>effect <00:02:13.774>in <00:02:13.961>2027, <00:02:15.369>requiring <00:02:15.865>suppliers <00:02:16.494>to <00:02:16.658>report <00:02:17.061>monthly <00:02:17.561>potable <00:02:18.121>and <00:02:18.417>reclaimed-water <00:02:19.321>volumes.

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<v Matt>Monthly <00:02:21.691>numbers <00:02:22.101>are <00:02:22.353>excellent.

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<v Matt>“Sustainable <00:02:24.191>cooling” <00:02:24.814>is <00:02:24.990>lovely <00:02:25.463>brochure <00:02:26.023>language.

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<v Matt>Potable <00:02:27.961>versus <00:02:28.521>reclaimed <00:02:29.308>water <00:02:29.801>is <00:02:30.169>what <00:02:30.414>tells <00:02:30.701>the <00:02:30.841>town <00:02:31.201>how <00:02:31.369>much <00:02:31.601>a <00:02:31.703>facility’s <00:02:32.414>actually <00:02:32.910>taking.

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<v Sarah>Water <00:02:35.054>is <00:02:35.211>joining <00:02:35.628>power <00:02:36.014>as <00:02:36.161>a <00:02:36.261>siting <00:02:36.681>gate.

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<v Sarah>Developers <00:02:38.137>will <00:02:38.233>have <00:02:38.388>to <00:02:38.489>show <00:02:38.743>adequate <00:02:39.321>supply <00:02:39.861>and <00:02:40.094>infrastructure <00:02:40.887>before <00:02:41.221>permits <00:02:41.708>clear—an <00:02:42.749>inconvenient <00:02:43.641>detail <00:02:44.161>for <00:02:44.338>anyone <00:02:44.717>treating <00:02:45.071>cooling <00:02:45.614>as <00:02:45.761>a

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<v Sarah>footnote <00:02:46.388>to <00:02:46.461>the <00:02:46.581>megawatt <00:02:47.161>pitch.

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<v Sarah>Jemima <00:02:49.099>Davey, <00:02:49.565>writing <00:02:49.968>in <00:02:50.155>Datacenter <00:02:50.804>Dynamics:

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<v Quote>The <00:02:52.264>$40bn <00:02:53.071>acquisition <00:02:54.051>of <00:02:54.157>Aligned <00:02:54.568>Data <00:02:54.874>Centers <00:02:55.264>has <00:02:55.464>closed.

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<v Quote>The <00:02:56.637>purchase <00:02:57.277>by <00:02:57.564>a <00:02:57.777>consortium <00:02:58.148>comprising <00:02:58.624>the <00:02:58.877>AI <00:02:59.187>Infrastructure <00:02:59.837>Partnership <00:03:00.624>(AIP)

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<v Quote>BlackRock’s <00:03:02.481>Global <00:03:02.861>Infrastructure <00:03:03.446>Partners <00:03:04.144>(GIP)

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<v Quote>and <00:03:05.544>Abu <00:03:05.851>Dhabi-based <00:03:06.691>MGX

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<v Quote>was <00:03:07.667>successfully <00:03:08.240>completed <00:03:08.776>this <00:03:08.952>week.

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<v Quote>An <00:03:10.140>additional <00:03:10.584>$5bn <00:03:11.824>was <00:03:12.008>also <00:03:12.304>committed <00:03:12.704>for <00:03:12.877>Aligned's <00:03:13.368>data <00:03:13.658>center <00:03:13.928>expansion.

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<v Sarah>The <00:03:15.148>$40 <00:03:15.518>billion <00:03:16.255>Aligned <00:03:16.841>acquisition <00:03:17.497>closed <00:03:18.004>July <00:03:18.548>22, <00:03:19.620>with <00:03:19.798>another <00:03:20.228>$5 <00:03:20.648>billion <00:03:21.388>committed <00:03:21.768>for <00:03:21.908>expansion.

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<v Sarah>Finally, <00:03:24.108>a <00:03:24.212>data-center <00:03:24.928>capital <00:03:25.401>story <00:03:25.716>with <00:03:25.999>actual <00:03:26.601>money <00:03:26.930>attached—not <00:03:28.052>just <00:03:28.348>a <00:03:28.445>render <00:03:28.808>and <00:03:28.908>a <00:03:29.020>handshake.

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<v Matt>And <00:03:30.356>they <00:03:30.582>bought <00:03:30.828>the <00:03:31.001>whole <00:03:31.335>thing <00:03:31.716>from <00:03:31.948>Macquarie: <00:03:33.188>51 <00:03:33.908>campuses <00:03:34.608>and <00:03:34.820>more <00:03:34.980>than <00:03:35.268>6.4 <00:03:36.168>gigawatts <00:03:37.001>of <00:03:37.168>operational <00:03:37.868>and <00:03:38.048>planned <00:03:38.548>capacity.

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<v Matt>“Operational” <00:03:40.988>and <00:03:41.188>“planned” <00:03:42.132>mean <00:03:42.468>very <00:03:42.828>different <00:03:43.257>things <00:03:43.721>in <00:03:43.876>that <00:03:44.130>sentence.

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<v Sarah>Exactly. <00:03:46.108>The <00:03:46.519>consortium <00:03:47.088>now <00:03:47.308>needs <00:03:47.561>to <00:03:47.716>show <00:03:47.968>how <00:03:48.180>much <00:03:48.361>of <00:03:48.500>that <00:03:48.788>6.4 <00:03:49.568>gigawatts <00:03:50.281>is <00:03:50.455>energized

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<v Sarah>what <00:03:51.721>comes <00:03:52.057>online <00:03:52.548>when

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<v Sarah>and <00:03:53.561>which <00:03:53.872>customer <00:03:54.300>contracts <00:03:55.008>support <00:03:55.448>the <00:03:55.575>extra <00:03:55.988>$5 <00:03:56.448>billion.

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<v Matt>Forty-five <00:03:59.008>billion <00:03:59.498>dollars <00:04:00.068>buys <00:04:00.477>campuses.

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<v Matt>It <00:04:01.868>doesn’t, <00:04:02.281>by <00:04:02.479>itself, <00:04:03.168>buy <00:04:03.410>transmission, <00:04:04.455>substations, <00:04:05.321>or <00:04:05.501>generation.

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<v Matt>Dallas <00:04:07.403>headquarters <00:04:08.135>stays <00:04:08.548>put; <00:04:09.368>the <00:04:09.495>power <00:04:09.888>problem <00:04:10.361>doesn’t.

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<v Sarah>This <00:04:11.846>one's <00:04:12.094>from <00:04:12.366>Data <00:04:12.743>Center <00:04:13.184>Dynamics:

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<v Quote>The <00:04:14.717>demand <00:04:15.100>for <00:04:15.290>digital <00:04:15.800>and <00:04:15.924>data <00:04:16.251>services <00:04:16.876>continues <00:04:17.433>to <00:04:17.620>grow <00:04:17.967>at <00:04:18.100>an <00:04:18.317>unprecedented <00:04:19.140>rate.

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<v Quote>According <00:04:20.367>to <00:04:20.440>the <00:04:20.551>International <00:04:21.277>Energy <00:04:21.700>Agency <00:04:22.380>(IEA)

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<v Quote>the <00:04:23.734>number <00:04:23.993>of <00:04:24.144>internet <00:04:24.567>users <00:04:24.953>globally <00:04:25.440>has <00:04:25.668>more <00:04:25.892>than <00:04:26.080>doubled <00:04:26.540>since <00:04:26.820>2010

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<v Quote>while <00:04:28.224>internet <00:04:28.640>traffic <00:04:29.120>has <00:04:29.369>surged <00:04:29.860>20-fold.

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<v Quote>Despite <00:04:31.847>major <00:04:32.231>efficiency <00:04:32.795>improvements

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<v Quote>workloads <00:04:34.390>handled <00:04:34.767>by <00:04:34.887>large <00:04:35.284>data <00:04:35.590>centers <00:04:35.988>have <00:04:36.228>increased <00:04:36.717>energy <00:04:37.107>consumption <00:04:37.700>by <00:04:37.940>20-40 <00:04:38.940>percent <00:04:39.282>annually <00:04:39.833>since <00:04:40.180>2020.

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<v Matt>The <00:04:41.590>IEA <00:04:42.267>says <00:04:42.587>workloads <00:04:43.296>at <00:04:43.483>big <00:04:43.787>data <00:04:44.093>centers <00:04:44.491>have <00:04:44.729>pushed <00:04:45.056>power <00:04:45.383>consumption <00:04:46.150>up <00:04:46.443>20 <00:04:46.896>to <00:04:47.163>40 <00:04:47.533>percent <00:04:47.963>a <00:04:48.139>year <00:04:48.576>since <00:04:48.923>2020.

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<v Matt>And <00:04:50.336>we’re <00:04:50.656>still <00:04:50.967>treating <00:04:51.403>a <00:04:51.723>100-megawatt <00:04:52.763>PPA <00:04:53.403>like <00:04:53.803>routine <00:04:54.423>procurement?

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<v Matt>Sellers <00:04:56.571>have <00:04:56.803>the <00:04:56.976>leverage <00:04:57.503>now.

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<v Sarah>DCD’s <00:04:59.363>point <00:04:59.643>is <00:04:59.874>narrower

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<v Sarah>and <00:05:00.843>useful: <00:05:01.936>PPAs <00:05:02.736>still <00:05:03.060>anchor <00:05:03.463>net-zero <00:05:04.112>claims

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<v Sarah>but <00:05:05.243>100-to-200-megawatt-plus <00:05:07.627>contracts <00:05:08.243>are <00:05:08.403>getting <00:05:08.773>tougher <00:05:09.510>as <00:05:09.783>tariffs <00:05:10.243>and <00:05:10.411>equipment <00:05:10.936>costs <00:05:11.515>rise.

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<v Sarah>A <00:05:12.649>signed <00:05:13.043>PPA <00:05:13.515>with <00:05:13.683>a <00:05:13.776>credible <00:05:14.283>in-service <00:05:14.907>date <00:05:15.216>still <00:05:15.553>matters.

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<v Sarah>A <00:05:16.736>sustainability <00:05:17.550>slide <00:05:17.963>isn’t <00:05:18.352>enough.

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<v Matt>The <00:05:20.016>Aligned <00:05:20.512>buyers <00:05:20.987>just <00:05:21.291>committed <00:05:21.763>another <00:05:22.203>$5 <00:05:22.713>billion <00:05:23.510>to <00:05:23.635>expansion.

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<v Matt>Before <00:05:25.523>you <00:05:25.707>call <00:05:26.016>it <00:05:26.176>infrastructure, <00:05:27.283>put <00:05:27.443>the <00:05:27.628>generation, <00:05:28.566>transmission <00:05:29.152>rights, <00:05:29.703>and <00:05:29.954>executed <00:05:30.576>power <00:05:30.923>contracts <00:05:31.734>beside <00:05:32.315>that <00:05:32.500>number.

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<v Sarah>The <00:05:33.936>DC <00:05:34.253>Circuit <00:05:34.667>just <00:05:34.980>upheld <00:05:35.403>FERC <00:05:35.776>Order <00:05:36.123>2023, <00:05:37.483>so <00:05:37.683>the <00:05:37.853>federal <00:05:38.256>queue <00:05:38.590>rules <00:05:38.971>have <00:05:39.223>firmer <00:05:39.710>legal <00:05:40.093>footing.

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<v Sarah>That <00:05:41.283>helps <00:05:41.503>the <00:05:41.643>process.

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<v Sarah>It <00:05:42.790>doesn’t <00:05:43.049>create <00:05:43.403>a <00:05:43.563>200-megawatt <00:05:44.576>clean-power <00:05:45.243>contract <00:05:45.910>at <00:05:46.003>a <00:05:46.110>price <00:05:46.483>a <00:05:46.587>data <00:05:46.877>center <00:05:47.115>will <00:05:47.339>sign.

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<v Host>If <00:05:48.704>you’re <00:05:48.986>enjoying <00:05:49.204>The <00:05:49.372>Data <00:05:49.610>Center <00:05:49.951>Daily, <00:05:50.580>subscribe <00:05:51.137>or <00:05:51.284>leave <00:05:51.584>a <00:05:51.713>review <00:05:51.920>wherever <00:05:52.224>you’re <00:05:52.404>listening.

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<v Host>It <00:05:53.457>helps <00:05:53.758>people <00:05:54.028>find <00:05:54.304>the <00:05:54.428>show—and <00:05:55.057>helps <00:05:55.404>us <00:05:55.591>bring <00:05:55.764>you <00:05:55.904>the <00:05:56.033>latest <00:05:56.511>every <00:05:56.924>day.

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<v Host>You’ll <00:05:58.465>find <00:05:58.646>links <00:05:58.940>to <00:05:59.033>every <00:05:59.300>story <00:05:59.660>in <00:05:59.733>the <00:05:59.841>show <00:06:00.113>notes, <00:06:00.966>along <00:06:01.249>with <00:06:01.333>the <00:06:01.453>sources <00:06:01.919>behind <00:06:02.246>today’s <00:06:02.646>briefing.

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<v Host>Dig <00:06:04.081>into <00:06:04.313>whichever <00:06:04.721>ones <00:06:04.933>you <00:06:05.073>want, <00:06:05.833>and <00:06:05.980>we’ll <00:06:06.140>be <00:06:06.241>back <00:06:06.490>Monday.

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<v Host>That’s <00:06:07.893>The <00:06:08.001>Data <00:06:08.239>Center <00:06:08.566>Daily <00:06:08.873>for <00:06:09.060>today.

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