Amazon AWS consumes a lot of electricity and government paying for it

- Advertisment -
- Advertisement -

According to Bloomberg News, Amazon’s cloud computing business Amazon Web Services (AWS) is Amazon’s fastest growing, most profitable sector, but on the other hand, it also brings a lot of early infrastructure construction costs and ongoing spending, including the biggest expense of electricity.

In the past 10 years, the cloud computing business in the United States has grown from zero to 2% of US power. Amazon’s “physical footprint” in the world has almost doubled in 2 years, covering an area of 23.6 million square meters, including dozens of new data centers. These data centers have a large number of servers that run 24 hours a day.

Amazon AWS consumes a lot of electricity but the government pays for electricity

In at least two states, Amazon also negotiates with power companies and politicians to let others pay for these electricity bills. In the past 10 years, the company has received about $1.2 billion in state and municipal tax benefits. So, who is paying for the huge electricity bills that Amazon spends?

Greenpeace (Non-governmental organization) said that Amazon has strengthened the confidentiality of who pays for electricity, and the company is the single biggest obstacle to transparency in the industry. Amazon declined to comment on the matter.

Amazon’s dominant position in the US cloud computing business has also been a huge success in reducing the cost of electricity. Neal Elliott, senior research director at the Environmental Economics Committee (ACEEE), said: “Amazon has a huge advantage because the electricity market is not growing like other industries.”

Unlike tax incentives (which must ultimately be disclosed to the public), the cost of electricity trading is often hidden because, technically, they are achieved between firms. However, these transactions do require approval from national regulators.

Although data centers usually don’t bring many new jobs, politicians eager to make up for the manufacturing downturn have worked closely with power companies to get Amazon’s data center in place, using the company’s name as a symbol of economic recovery.

For example, Amazon’s Vadata operates at least 29 data centers in Virginia and plans to build another 11 data centers. The company’s 78-page special rate agreement application has two versions, one is a publicly reviewed version and the other is a hidden version stamped by a state regulator.

Like politicians, power companies are actively pursuing cooperation with Amazon. In this way, Amazon is in line with the long-standing tradition of the United States to pass costs from businesses to residents. According to a study by the US Energy Conservation Economics Commission (ACEEE) in 2016, the cost of utilities for poor residents is three times that of wealthy families.

Source

H2S Media Team
H2S is a group of tech enthusiasts those are passionate about latest technology developments. They always like to solve own technical problems and share the same solution with others through this Website.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest Posts

6 Best disk space analyzer tools for Windows 10

List of best Storage or disk space usage analyzer software for Windows 10/7 to help in disk analyzation, so...

Electronics Arts “Apex Legends” game is coming to Smartphones

The news has been aired all the way among the mobile game lovers that the PC title from Electronics...

Microsoft Office app brings all the major Office apps and other services under one roof

On installing Microsoft Office on our computers, we get access to all the office applications on your computer. However,...

Half-Life Games are about to become Free to Play on Steam

According to the latest announcement from Valve, all the games under the Half-Life franchises are going to be free...
- Advertisement -

KDM launches dual charging 10,000 mAh Power Bank

KDM that deals in audio products recently has announced its budget-priced 10,000 mAh Power bank names as KDM 10X...

How to mount encrypted VeraCrypt or other volumes on an Android device

If you want to encrypt everything on your computer there are a number of encrypting solutions are available out...

- Advertisment -
- Advertisement -

You might also likeRELATED
Recommended to you