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<v Sarah>The AI buildout has arrived at the part where water, wires, and money all get a veto.

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<v Matt>On The Data Center Daily: California communities are hitting the brakes in a matter of days, while the grid’s backup plan is stuck in line.

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<v Matt>First up: Visalia. Tap follow so the next episode finds you.

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<v Sarah>Here's <00:00:22.365>SJV <00:00:22.872>Water:

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<v Quote>Proposals <00:00:25.980>for <00:00:26.240>two <00:00:26.600>“mini” <00:00:27.093>AI <00:00:27.424>data <00:00:27.730>centers <00:00:28.107>on <00:00:28.180>the <00:00:28.304>fairgrounds <00:00:28.907>in <00:00:29.020>Tulare <00:00:29.460>and <00:00:29.587>Kings <00:00:29.973>counties <00:00:30.480>recently <00:00:31.168>generated <00:00:31.680>a <00:00:31.840>firestorm <00:00:32.453>of <00:00:32.616>questions <00:00:33.180>and

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<v Quote>angry <00:00:33.742>comments.

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<v Quote>They <00:00:35.080>are <00:00:35.280>far <00:00:35.552>from <00:00:35.742>approval, <00:00:36.680>but <00:00:36.848>residents <00:00:37.328>fear <00:00:37.540>the <00:00:37.656>notorious <00:00:38.240>power <00:00:38.660>and <00:00:38.773>water <00:00:39.093>guzzling <00:00:39.500>centers <00:00:40.000>will <00:00:40.373>drain <00:00:40.710>already <00:00:41.253>stressed <00:00:41.733>water <00:00:42.062>supplies.

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<v Quote>Whether <00:00:43.728>they <00:00:43.960>would <00:00:44.210>depends <00:00:44.613>on <00:00:44.760>a <00:00:44.840>lot <00:00:45.013>of <00:00:45.180>factors, <00:00:45.960>including <00:00:46.340>the <00:00:46.496>size <00:00:46.920>and <00:00:47.088>type <00:00:47.333>of <00:00:47.488>data <00:00:47.726>center.

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<v Matt>“Mini” <00:00:49.135>is <00:00:49.322>a <00:00:49.436>pretty <00:00:49.700>convenient <00:00:50.349>label <00:00:50.746>here.

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<v Matt>SJV <00:00:52.202>Water <00:00:52.666>puts <00:00:52.972>typical <00:00:53.402>use <00:00:53.722>at <00:00:54.322>18.6 <00:00:55.162>acre-feet <00:00:55.722>a <00:00:55.866>year <00:00:56.162>for <00:00:56.335>every <00:00:56.662>megawatt

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<v Matt>in <00:00:57.682>a <00:00:57.779>valley <00:00:58.149>where <00:00:58.342>farmers <00:00:58.812>already <00:00:59.210>have <00:00:59.455>to <00:00:59.629>meter <00:01:00.062>and <00:01:00.442>pay <00:01:00.742>for <00:01:00.975>groundwater.

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<v Sarah>The <00:01:02.922>disclosure <00:01:03.642>gap <00:01:03.935>is <00:01:04.095>still <00:01:04.426>wide <00:01:04.778>open: <00:01:05.386>Newsom <00:01:06.202>vetoed <00:01:06.642>a <00:01:06.746>statewide <00:01:07.370>reporting <00:01:07.834>bill <00:01:08.026>last <00:01:08.362>year, <00:01:09.009>while <00:01:09.402>AB <00:01:10.042>2469 <00:01:11.142>and <00:01:11.509>AB <00:01:12.202>2619 <00:01:13.450>take <00:01:13.682>another <00:01:14.002>run <00:01:14.202>at <00:01:14.442>it.

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<v Sarah>Aaron <00:01:15.622>Fukuda’s <00:01:16.175>point <00:01:16.522>is <00:01:16.728>pretty <00:01:17.082>plain: <00:01:17.742>account <00:01:18.462>for <00:01:18.562>the <00:01:18.742>pumping, <00:01:19.695>formally <00:01:20.202>or <00:01:20.442>otherwise.

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<v Matt>Tulare <00:01:22.979>County <00:01:23.378>considers <00:01:23.922>a <00:01:24.362>45-day <00:01:24.914>emergency <00:01:25.610>ordinance <00:01:26.095>tomorrow, <00:01:26.872>Aug.

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<v Matt>18. <00:01:28.775>These <00:01:28.906>fairgrounds <00:01:29.546>proposals <00:01:30.162>are <00:01:30.349>still <00:01:30.762>far <00:01:31.050>from <00:01:31.340>approval

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<v Matt>but <00:01:32.410>residents <00:01:32.882>are <00:01:33.032>putting <00:01:33.322>a <00:01:33.455>clock <00:01:33.775>on <00:01:33.926>permitting <00:01:34.419>before <00:01:34.815>somebody <00:01:35.299>treats <00:01:35.686>stressed <00:01:36.102>groundwater <00:01:36.810>like <00:01:37.082>free <00:01:37.452>cooling <00:01:37.874>inventory.

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<v Sarah>From <00:01:39.674>Bloomberg:

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<v Quote>Demand <00:01:41.036>for <00:01:41.212>batteries <00:01:41.756>has <00:01:41.940>skyrocketed <00:01:42.783>as <00:01:43.056>electricity <00:01:43.776>use <00:01:44.013>across <00:01:44.396>the <00:01:44.649>US <00:01:44.969>swells

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<v Quote>driven <00:01:46.196>by <00:01:46.404>data <00:01:46.646>centers’ <00:01:47.116>booming <00:01:47.465>energy <00:01:47.943>needs <00:01:48.336>and <00:01:48.560>increasing <00:01:49.053>electrification.

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<v Quote>It’s <00:01:50.964>also <00:01:51.196>getting <00:01:51.533>harder <00:01:51.903>to <00:01:51.996>get <00:01:52.148>them <00:01:52.316>connected <00:01:52.729>to <00:01:52.876>power <00:01:53.156>grids.

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<v Quote>Falling <00:01:54.733>prices <00:01:55.108>have <00:01:55.268>made <00:01:55.444>batteries <00:01:55.908>more <00:01:56.101>attractive.

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<v Quote>But <00:01:57.289>after <00:01:57.616>decades <00:01:58.063>of <00:01:58.169>stagnant <00:01:58.654>investment

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<v Quote>grids <00:01:59.896>are <00:02:00.013>racing <00:02:00.383>to <00:02:00.484>make <00:02:00.696>the <00:02:00.809>upgrades <00:02:01.282>needed <00:02:01.583>to <00:02:01.684>plug <00:02:01.908>them <00:02:02.116>in

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<v Quote>straining <00:02:03.129>supplies <00:02:03.609>of <00:02:03.778>transformers

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<v Quote>circuit <00:02:05.196>breakers <00:02:05.696>and <00:02:05.916>other <00:02:06.172>equipment.

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<v Matt>Seven <00:02:07.398>hundred <00:02:07.898>fifty <00:02:08.398>gigawatts <00:02:09.178>of <00:02:09.418>storage <00:02:10.058>is <00:02:10.288>sitting <00:02:10.831>in <00:02:11.005>interconnection <00:02:11.818>lines.

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<v Matt>That’s <00:02:13.218>the <00:02:13.395>backup <00:02:13.791>fleet <00:02:14.111>everyone <00:02:14.595>points <00:02:14.991>to <00:02:15.130>when <00:02:15.306>they <00:02:15.538>say <00:02:15.738>data-center <00:02:16.458>load <00:02:16.838>can <00:02:17.071>be <00:02:17.258>managed—and <00:02:18.565>it <00:02:18.671>waits <00:02:19.018>a <00:02:19.155>median <00:02:19.642>five <00:02:20.325>years <00:02:20.911>to <00:02:21.066>plug <00:02:21.365>in.

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<v Sarah>That’s <00:02:22.123>roughly <00:02:22.338>the <00:02:22.529>capacity <00:02:23.151>of <00:02:23.290>more <00:02:23.466>than <00:02:23.818>700 <00:02:24.678>nuclear <00:02:25.160>reactors <00:02:25.704>queued <00:02:26.018>for <00:02:26.196>connection.

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<v Sarah>Not <00:02:27.445>every <00:02:27.638>project <00:02:28.120>survives <00:02:28.658>the <00:02:28.845>queue, <00:02:29.358>but <00:02:29.698>a <00:02:29.802>five-year <00:02:30.287>median, <00:02:30.938>up <00:02:31.130>from <00:02:31.338>18 <00:02:31.864>months <00:02:32.191>in <00:02:32.378>2015, <00:02:33.631>is <00:02:33.778>a <00:02:33.876>structural <00:02:34.528>failure—not <00:02:35.698>a <00:02:35.802>busy <00:02:36.165>inbox.

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<v Matt>Battery <00:02:37.555>prices <00:02:37.978>fell.

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<v Matt>The <00:02:38.840>transformers, <00:02:39.778>circuit <00:02:40.098>breakers, <00:02:40.658>and <00:02:40.826>grid <00:02:41.080>upgrades <00:02:41.658>still <00:02:42.106>didn’t <00:02:42.447>arrive.

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<v Matt>We’ve <00:02:43.858>built <00:02:44.098>a <00:02:44.188>waiting <00:02:44.602>room <00:02:44.918>for <00:02:45.138>the <00:02:45.306>equipment <00:02:45.778>meant <00:02:46.031>to <00:02:46.170>keep <00:02:46.338>the <00:02:46.515>system <00:02:46.906>from <00:02:47.158>falling <00:02:47.658>over.

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<v Sarah>Con <00:02:48.755>Edison <00:02:49.162>says <00:02:49.458>its <00:02:49.638>battery <00:02:50.111>queue <00:02:50.426>grew <00:02:50.778>300% <00:02:51.791>in <00:02:51.958>two <00:02:52.231>years.

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<v Sarah>Utilities <00:02:53.778>are <00:02:53.925>being <00:02:54.125>asked <00:02:54.485>to <00:02:54.598>accommodate <00:02:55.338>new <00:02:55.658>large <00:02:56.151>loads <00:02:56.698>while <00:02:57.118>the <00:02:57.234>balancing <00:02:57.818>assets <00:02:58.362>face <00:02:58.658>the <00:02:58.858>same <00:02:59.229>connection <00:02:59.796>bottleneck.

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<v Sarah>Very <00:03:01.234>efficient, <00:03:01.871>if <00:03:01.994>your <00:03:02.138>goal <00:03:02.485>is <00:03:02.610>paperwork.

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<v Sarah>Saeed <00:03:04.768>Azhar <00:03:05.235>and <00:03:05.435>Tatiana <00:03:05.955>Bautzer <00:03:06.528>at <00:03:06.705>Reuters <00:03:07.227>have <00:03:07.375>the <00:03:07.525>details.

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<v Matt>Reuters <00:03:09.355>says <00:03:09.768>banks <00:03:10.275>are <00:03:10.435>now <00:03:10.599>treating <00:03:11.022>water <00:03:11.455>use, <00:03:12.075>noise, <00:03:12.782>power-bill <00:03:13.422>anger, <00:03:13.915>and <00:03:14.222>local <00:03:14.620>opposition <00:03:15.408>as <00:03:15.732>credit <00:03:16.155>risk.

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<v Matt>Good. <00:03:18.115>A <00:03:18.445>stalled <00:03:18.852>permit <00:03:19.262>costs <00:03:19.662>money <00:03:20.052>before <00:03:20.475>anybody <00:03:21.088>pours <00:03:21.395>a <00:03:21.483>yard <00:03:21.702>of <00:03:21.817>concrete.

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<v Sarah>Bank <00:03:23.222>of <00:03:23.335>America’s <00:03:23.883>infrastructure <00:03:24.622>chief <00:03:25.055>defines <00:03:25.815>project <00:03:26.299>readiness <00:03:26.982>as <00:03:27.265>permits, <00:03:27.971>approvals, <00:03:28.595>and <00:03:28.771>community <00:03:29.345>support.

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<v Sarah>So <00:03:31.035>“ready <00:03:31.488>to <00:03:31.675>build” <00:03:32.295>now <00:03:32.528>comes <00:03:32.827>with <00:03:32.995>a <00:03:33.095>few <00:03:33.347>decidedly <00:03:34.059>less <00:03:34.379>glamorous <00:03:35.004>requirements <00:03:35.627>than <00:03:35.795>a <00:03:35.975>GPU <00:03:36.448>purchase <00:03:36.928>order.

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<v Matt>And <00:03:37.968>after <00:03:38.267>that <00:03:38.452>Valley <00:03:38.848>water <00:03:39.182>story, <00:03:39.895>lenders <00:03:40.335>don’t <00:03:40.595>treat <00:03:40.843>community <00:03:41.335>support <00:03:41.835>as <00:03:42.043>some <00:03:42.315>soft <00:03:42.704>survey <00:03:43.182>score.

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<v Matt>It <00:03:44.275>can <00:03:44.464>decide <00:03:44.905>whether <00:03:45.155>a <00:03:45.252>lender <00:03:45.648>funds <00:03:45.955>a <00:03:46.038>construction <00:03:46.617>schedule—or <00:03:47.867>gets <00:03:48.355>stuck <00:03:48.611>financing <00:03:49.155>a <00:03:49.291>very <00:03:49.731>expensive <00:03:50.288>argument.

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<v Sarah>Capital <00:03:51.728>is <00:03:51.862>still <00:03:52.045>chasing <00:03:52.415>the <00:03:52.528>buildout.

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<v Sarah>Reuters <00:03:54.043>says <00:03:54.299>loan <00:03:54.599>committees <00:03:55.075>are <00:03:55.275>now <00:03:55.584>asking <00:03:56.025>whether <00:03:56.275>a <00:03:56.395>project <00:03:57.035>stays <00:03:57.488>buildable <00:03:58.187>once <00:03:58.675>the <00:03:58.829>ribbon-cutting <00:03:59.419>deck <00:03:59.728>is <00:03:59.899>over.

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<v Sarah>Here's <00:04:01.298>San <00:04:01.542>José <00:04:01.854>Spotlight:

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<v Quote>As <00:04:03.295>San <00:04:03.539>Jose <00:04:03.875>hammers <00:04:04.315>out <00:04:04.488>local <00:04:04.801>review <00:04:05.123>standards <00:04:05.595>for <00:04:05.763>data <00:04:05.989>center <00:04:06.266>projects

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<v Quote>some <00:04:07.355>residents <00:04:07.735>are <00:04:07.835>calling <00:04:08.135>for <00:04:08.215>the <00:04:08.339>city <00:04:08.648>to <00:04:08.801>follow <00:04:09.115>the <00:04:09.267>lead <00:04:09.422>of <00:04:09.528>other <00:04:09.852>jurisdictions <00:04:10.675>and <00:04:10.982>enact <00:04:11.342>an <00:04:11.459>immediate <00:04:12.075>moratorium <00:04:12.888>on <00:04:13.035>new <00:04:13.210>developments.

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<v Sarah>San <00:04:14.554>Jose <00:04:14.934>has <00:04:15.194>20 <00:04:15.570>operating <00:04:16.138>data <00:04:16.454>centers, <00:04:17.374>six <00:04:17.714>under <00:04:17.963>construction, <00:04:18.994>and <00:04:19.210>five <00:04:19.634>seeking <00:04:19.986>approvals.

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<v Sarah>Its <00:04:21.402>standards <00:04:21.904>package <00:04:22.434>doesn’t <00:04:22.741>reach <00:04:22.934>council <00:04:23.407>until <00:04:23.736>December

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<v Sarah>so <00:04:24.847>Green <00:04:25.194>Foothills <00:04:25.722>says <00:04:25.972>developers <00:04:26.586>have <00:04:26.794>every <00:04:27.258>incentive <00:04:27.861>to <00:04:27.954>get <00:04:28.127>grandfathered <00:04:28.847>in <00:04:29.047>first.

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<v Matt>Of <00:04:30.383>course <00:04:30.842>they <00:04:31.141>do.

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<v Matt>With <00:04:32.287>rules <00:04:32.607>on <00:04:32.781>water, <00:04:33.421>power, <00:04:34.007>noise, <00:04:34.594>air <00:04:34.784>quality, <00:04:35.394>and <00:04:35.571>public <00:04:35.967>outreach <00:04:36.494>all <00:04:36.838>arriving <00:04:37.221>in <00:04:37.336>December, <00:04:38.434>the <00:04:38.634>rush <00:04:39.007>is <00:04:39.194>to <00:04:39.418>file <00:04:39.743>before <00:04:40.207>December.

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<v Matt>That’s <00:04:41.674>a <00:04:41.798>permitting <00:04:42.305>loophole <00:04:42.906>with <00:04:43.174>a <00:04:43.345>calendar <00:04:43.656>attached.

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<v Sarah>And <00:04:44.874>Equinix’s <00:04:45.578>site <00:04:45.887>at <00:04:46.074>123 <00:04:47.087>Great <00:04:47.418>Oaks <00:04:47.738>Boulevard <00:04:48.501>is <00:04:48.941>right <00:04:49.327>in <00:04:49.454>the <00:04:49.548>middle <00:04:49.807>of <00:04:49.934>the <00:04:50.063>debate.

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<v Sarah>Community <00:04:51.485>acceptance <00:04:52.047>is <00:04:52.214>now <00:04:52.447>on <00:04:52.574>the <00:04:52.698>city-council <00:04:53.423>agenda, <00:04:54.294>not <00:04:54.538>just <00:04:54.834>a <00:04:54.954>line <00:04:55.301>in <00:04:55.434>a <00:04:55.562>site-selection <00:04:56.301>spreadsheet.

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<v Matt>San <00:04:57.882>Jose <00:04:58.122>officials <00:04:58.614>can <00:04:58.826>call <00:04:58.994>the <00:04:59.158>approval <00:04:59.585>timeline <00:05:00.234>protracted

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<v Matt>but <00:05:01.642>residents <00:05:02.094>are <00:05:02.194>looking <00:05:02.527>at <00:05:02.714>Oakley <00:05:03.294>and <00:05:03.414>New <00:05:03.642>York’s <00:05:03.954>moratoriums <00:05:04.914>and <00:05:05.331>asking <00:05:05.774>why <00:05:06.132>applicants <00:05:06.754>get <00:05:06.927>to <00:05:07.103>sprint <00:05:07.544>through <00:05:07.786>this <00:05:08.014>gap.

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<v Matt>After <00:05:09.294>the <00:05:09.400>lender <00:05:09.727>piece, <00:05:10.426>that <00:05:10.607>fight <00:05:10.938>goes <00:05:11.238>straight <00:05:11.642>into <00:05:11.887>underwriting.

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<v Host>If <00:05:13.405>you <00:05:13.522>follow <00:05:13.885>The <00:05:14.009>Data <00:05:14.311>Center <00:05:14.665>Daily, <00:05:15.412>check <00:05:15.625>out <00:05:15.972>AI <00:05:16.238>Daily <00:05:16.558>Briefing: <00:05:17.325>top <00:05:17.998>AI <00:05:18.329>news <00:05:18.605>for <00:05:18.737>engineers, <00:05:19.598>founders, <00:05:20.125>and <00:05:20.241>investors <00:05:20.812>every <00:05:21.205>weekday.

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<v Host>It <00:05:22.471>breaks <00:05:22.793>down <00:05:23.049>real <00:05:23.367>capabilities <00:05:24.162>versus <00:05:24.569>demo <00:05:24.889>hype, <00:05:25.337>fast.

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<v Host>Find <00:05:26.612>it <00:05:26.709>wherever <00:05:27.085>you <00:05:27.191>listen <00:05:27.492>to <00:05:27.625>podcasts.

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<v Host>We’re <00:05:29.411>watching <00:05:29.755>San <00:05:30.015>Jose’s <00:05:30.479>data-center <00:05:31.023>standards <00:05:31.525>package, <00:05:32.557>expected <00:05:33.082>to <00:05:33.188>go <00:05:33.341>before <00:05:33.635>the <00:05:33.743>City <00:05:33.995>Council <00:05:34.442>in <00:05:34.557>December.

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<v Host>Links <00:05:36.122>to <00:05:36.215>every <00:05:36.482>story <00:05:36.855>are <00:05:37.002>in <00:05:37.075>the <00:05:37.183>show <00:05:37.455>notes, <00:05:38.095>so <00:05:38.447>take <00:05:38.615>a <00:05:38.687>look <00:05:38.842>at <00:05:38.935>the <00:05:39.103>ones <00:05:39.311>that <00:05:39.421>caught <00:05:39.711>your <00:05:39.839>attention.

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<v Host>Thanks <00:05:41.475>for <00:05:41.583>listening, <00:05:42.235>and <00:05:42.682>we’ll <00:05:42.842>be <00:05:42.943>back <00:05:43.197>tomorrow.

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<v Host>That’s <00:05:44.675>The <00:05:44.799>Data <00:05:45.101>Center <00:05:45.428>Daily <00:05:45.735>for <00:05:45.935>today.

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<v Host>This <00:05:47.268>is <00:05:47.415>a <00:05:47.515>Lantern <00:05:48.025>Podcast.