Tag: infrastructure

Ukraine/Russia War Intensifies, As Drones Strike Major Russian Oil Refinery

The war between Russia and Ukraine fell through the cracks a little when the United States and Israel started a war with Iran back in February. However, Ukraine and Russia are still very much locked in a war, as Kiev used drones to strike a major Russian oil refinery overnight.

Back in late June, Ukraine struck a Moscow refinery and caused “oil rain” to pour over the Russian capital of Moscow.

Drone Strike on Moscow Refinery Causes “Oil Rain” in Russian Capital

The Russian Defense Ministry added that Vladimir Zelensky, Ukraine’s ruler, ordered the attacks on the eve of the NATO (North Atlantic Treaty Organization) summit in Ankara “to demonstrate to his European sponsors, including the UK, his willingness to strike civilian targets in Russia from Ukraine at their expense.”

The UAV (unmanned aerial vehicles) attack occurred on the Omsk Oil Refinery in Omsk Region and is the first in central Russia since the start of the Ukraine conflict.

The Omsk Oil Refinery, which is operated by Gazprom Neft, specializes in the production of gasoline, diesel, aviation kerosene and road‑building bitumen. The refinery has an installed capacity of 20.5 million tons of crude per year. Omsk accounts for around one in every six liters of Euro‑5 gasoline and diesel fuel produced in Russia, as well as a significant share of the country’s aviation fuel.

Governor Vitaly Khotsenko wrote on Telegram on Monday that the facility was hit after several drones reached the city’s northern industrial zone.  Khotsenko said most of the incoming UAVs were destroyed by air defenses and that, according to preliminary information, there were no deaths or injuries, according to a report by RT. 

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Trump warns Iran that next targets will be power plants and bridges if no deal is reached

President Donald Trump warned the Iranian regime Tuesday that the United States will target its bridges and power plants soon “unless they get to the table and negotiate.”

The Middle Eastern conflict resumed last week after Iran struck three commercial vessels in the Strait of Hormuz and the United States has since launched its own strikes on Iran in response.

Trump warned Iran that the conflict will end when “I say it’s enough,” and that “energy targets” are next on his list. Iranian bridges and power plants will be struck next week if no deal is reached.

“I’ll save the energy targets for last, but ultimately we’ll hit energy targets,” Trump told Fox News reporter Trey Yingst. “We’re going to hit them very hard tonight. We’re going to hit them very hard tomorrow night. We’re going to hit them very hard the night after, and then next week it gets really bad for them because next week comes the power plants.

“Next week comes the bridges. We’re going to knock out all their power plants,” he continued. “We’re going to knock out all their bridges unless they get to the table and negotiate.”

Trump defended the U.S.’s recent airstrikes on Iran, likening the country’s regime to a boxer who needs to be beaten down before peace can be achieved.

“The only way you can negotiate with these people is through strength, and the only strength is military strength, and that’s what we’ve done,” Trump told Yingst. “It’s like a great boxer. You think you have them beat, and then all of a sudden he comes back and he gives you a shot. They have some fight left, but they don’t have much.”

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Largest US Power Grid Is 6.8 Gigawatts Short To Ensure Reliability On Historic Data Center Boom

The largest US power grid failed for a third straight year to secure enough future supply commitments to ensure reliability for the future amid a historic boom in data center demand.

PJM Interconnection, the largest US power grid (Regional Transmission Organization), which serves 67 million customers in 13 states and Washington, DC, said its auction to procure power for the year starting June 2028 fell 6.8 gigawatts short of what it will need to guarantee system reliability during demand spikes, in a statement released Tuesday. The shortfall is equivalent to almost seven traditional nuclear reactors.

The result ramps up pressure on a grid that’s home to Virginia’s Data Center Alley, the biggest concentration of data centers in the US, and has borne the brunt of criticism for the struggle to manage the AI boom and sufficiently protect customers from soaring costs. Attention now shifts to an emergency procurement mechanism later this year that aims to shift the burden of ramping up power generation to hyperscalers.

6.831 Megawatt Shortfall

PJM Interconnection today announced the results of its 2028/2029 Base Residual Auction (BRA), which secured 138,318 MW of unforced capacity generation (UCAP) and demand response to meet projected electricity needs for the more than 67 million people across 13 states and the District of Columbia, which fall under the RTO’s umbrella.

Regions under the Fixed Resource Requirement (FRR) acquired an additional 10,864 MW in UCAP, for a total of 149,182 MW in UCAP available to serve forecasted peak electricity demand, plus a reserve margin. UCAP represents a generation resource’s maximum output adjusted for its estimated ability to reliably perform at times of highest system risk. The capacity of the resources procured in the auction, plus FRR resources, is short of PJM’s reliability requirement by 6,831 MW, meaning that the committed supply is less than what would be required to meet the one-event-in-10-year reliability standard (and with electricity-guzzling data centers popping up almost daily these days, the one-event-in-10-year has become a daily occurrence).

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The Real Grid Crisis Is A State Policy Problem Dressed Up As A Market Failure

There’s a critique of PJM making the rounds: PJM – the largest grid operator in the United States – is too big. There are too many state interests at play, and PJM doesn’t have the ability to function cohesively or quickly enough. FERC even scheduled a governance technical conference this month to examine whether PJM’s stakeholder structure can move fast enough to respond to demand. The reality is that policy disagreements at the state level are dressed up as a procedural defect with the grid, opening the way for critics to point their reforms at the wrong target.

Disagreements at the state level are just what you’d expect, pitting those that generate enough power to export against those that depend on imports. Pennsylvania is PJM’s energy workhorse, shipping out roughly a quarter of everything it generates. Illinois, West Virginia, and Michigan also produce more than they consume. The others – Virginia, Maryland, New Jersey, and Delaware – are net importers, and increasingly so as data centers expand across their footprints.

Exporters like Pennsylvania that are rich in nuclear, gas, and coal generation have fundamentally different interests in capacity pricing and transmission cost allocation from an importer state, which has restricted natural gas development, leaned hard into renewables, or joined an ambitious emission reduction program. When Virginia pulls in more expensive power from its neighbors, or when Maryland absorbs double-digit rate hikes, that isn’t a governance failure – it’s the market doing its job by revealing the cost of divergent state policy preferences (and thus resource access).

These state policy preferences are then lobbed at the market and its participants to respond to, whether by prematurely retiring generation, relying on tax subsidies, or simply building generation that is more expensive per megawatt when compared against traditional baseload fuels.

PJM is actively working to continue the evolution of the market to meet the demand of today and the future. It has cleared more than 60% of its interconnection backlog under a reformed study process and opened a new study cycle this spring in partnership with Google to apply AI to speed up the review process. A separate PJM program, the Reliability Resource Initiative, pulled in more than 11,000 MW of new projects that could come online quickly. PJM has also adjusted its review processes to allow more wind, solar, and storage to compete directly in the capacity auction. It’s even accepted a price collar through 2030, demonstrating that it is willing to make short-term adjustments in response to concerns by state executives.

More than 46,000 MW of approved projects – over a quarter of PJM’s existing capacity – already hold the right to build but are unable to move forward. Some 37,000 MW of PJM-approved generation can’t even break ground at all because of state and local permitting fights. At the same time, state policy mandates have pushed working plants into early retirement, further tightening supply from the other end. The same governors demanding faster action are often the ones holding the permits and slow-walking the buildout of energy infrastructure while forcing closures of dispatchable power.

PJM is not too big. It has demonstrated time and again that it can run a competitive power market and ensure the reliable transportation of power across 13 very varied states and the District of Columbia. It’s been successfully doing this for more than 30 years, delivering $5 billion in savings annually to customers, just as it was designed to do. It’s accelerated the queue and kept the lights on. What the market cannot do is permit projects or draft legislation. States must recognize their role in restricting the full benefits of the market.

Asking PJM to continue navigating these policy issues in the same manner – trying to respond to all of them – is a recipe for disaster. The states are absolutely responsible for chucking icebergs into the path of this ship, and if it goes down, they’ll have themselves to blame for the aftermath.

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Leaked Meta Memo Shows AI Capacity Doubling To 14 Gigawatts

Meta shares fell 4.3% at Thursday’s open after Reuters reported the contents of an internal memo laying out the next phase of the company’s AI infrastructure program.

The stock has clawed back part of the loss through the morning but stayed solidly red while the tape digested the same question it has been chewing on for nine days: is Meta the hyperscaler that just started exercising capex discipline, or the one that just committed to doubling?

Three things to note from today’s news. The first is silicon. Iris, Meta’s in-house AI accelerator and one of four planned MTIA generations unveiled in March, enters production at TSMC in September after clearing bug validation in six weeks with no major issues – an unusually clean result for a program that has stumbled for more than half a decade. Broadcom is the design partner under an agreement extended through 2029, and Meta plans to ship a new chip roughly every six months through 2027, against an industry norm of annual-or-slower cadences. The chips are meant to augment, not replace, externally sourced GPUs – Meta separately holds a multiyear agreement with AMD covering up to six gigawatts of Instinct accelerators – but the internal memo is very blunt about why the program matters – as adopting the latest external GPUs at Meta’s scale “has been a heavy lift, and it has cost us time.”

The second is scale. Meta plans to deploy seven gigawatts of computing infrastructure this year and to double overall capacity to fourteen gigawatts in 2027, with 2026 spending running as high as $145 billion – the very top of the range guided in April, and a meaningful slice of the more than $700 billion Big Tech is projected to pour into AI this year.

The third is supply. The memo reveals long-term contracts for memory from Samsung, flash storage from Sandisk and fiber-optic equipment from Sumitomo Electric – multi-year lock-ins struck in the middle of a memory shortage severe enough to be raising consumer hardware prices.

On its face the chip news is bullish: faster, cheaper, more independent compute is exactly what a company spending $145 billion a year should want. But the market has spent the past week and a half developing a very specific allergy, and the memo triggered it.

When Bloomberg reported at the start of the month that Meta was standing up a cloud business – internally, Meta Compute – to sell surplus capacity and token-metered API access to outsiders, the stock ripped nearly 9% higher in a session while CoreWeave and Nebius fell double digits. We suggested this might be a potential first crack in the AI capex boom: hoarding compute stops making sense the moment you admit you have extra, and if management appears willing to monetize idle infrastructure, the market reads capital discipline and pays for it. Days later, leaked town-hall remarks in which Zuckerberg conceded that agent development “hasn’t accelerated in the way we expected” knocked the stock back down – the July 2 drop that Thursday’s open just eclipsed.

Against that backdrop, a memo describing a doubling of capacity, a six-month silicon cadence and years of locked-in component supply looks rather – undisciplined when it comes to capex. Companies do not sign multi-year memory contracts in the middle of a shortage in order to stand still. As we noted earlier this month – the pivot to rewarding CapEx cutters – has, for now, been a driving force: up on plans to sell capacity, down on plans to double it, with the same infrastructure underneath both headlines.

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Ukraine Drones Hit Blue Stream Pipeline Compressor — Targeting Russia’s Gas Lifeline To Turkey On Day One Of NATO Summit In Ankara

Ukraine struck the Krasnodarskaya compressor station in Russia’s Krasnodar Krai on the evening of July 7 — timed, whether by design or coincidence, to the opening day of the NATO summit hosted by Turkey in Ankara. The Krasnodarskaya station is a critical node in the Blue Stream pipeline, which carries Russian natural gas directly to Turkey under the Black Sea. Gazprom confirmed the attack in an official statement, saying deliveries were not disrupted. That claim should be treated as a floor, not a ceiling — Gazprom has institutional incentive to minimize the incident and a track record of doing so.

The strategic geometry is deliberately provocative. Ukraine is attacking infrastructure that supplies gas to Turkey — the very country hosting the NATO summit where Erdogan is simultaneously positioning himself as both NATO convener and back-channel broker with Russia. At the summit, Erdogan separately announced new arms supplies to Ukraine while thanking the US, Spain, Germany, and Italy for air defense assistance during the Iran conflict — a performance of omnidirectional relevance that only Erdogan could plausibly sustain.

The Kremlin’s response was predictable: calling the strike “terrorism against critical global energy infrastructure.” What is less predictable is Turkey’s actual long-term posture. Ankara depends on Russian gas via Blue Stream and Turkish Stream, is courting Ukraine with weapons, is hosting the NATO summit, and is negotiating quietly with Moscow. Ukraine’s targeting of the Blue Stream compressor — reportedly guided by Palantir’s Maven targeting system — puts Erdogan in a genuinely uncomfortable position: his NATO allies’ weapons are striking infrastructure that heats Turkish homes.

Gazprom said exports were unaffected. This is the second reported attack on Blue Stream infrastructure in recent weeks, suggesting Ukraine has identified the pipeline as a pressure point specifically because it hurts both Russian revenue and Turkish dependency simultaneously — a two-for-one leverage play. There has been no indication Kyiv offered Turkey any advance warning….

President Trump has intentionally courted Turkey for its refusal to get involved on the side of Muslim Iran in the conflict, going so far as returning access to the F-35. Whether Anakara will remain in Trump’s camp as Russian gas is slowed is another issue entirely.

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MAMDANI’S NYC: Con Edison Shuts Off Power to 10,000 Customers in Queens as Temps Soar Over 100 Degrees

Mamdani’s New York City.

Con Edison shut off power to 10,000 customers in Queens, New York, on Friday as temperatures soared over 100 degrees.

This is after Communist NYC Mayor Zohran Mamdani urged New Yorkers to raise their thermostats to 78 degrees to alleviate strain on the energy grid.

“ConEd pulls the plug on nearly 10,000 customers in Howard Beach, Ozone Park, Richmond Hill and South Ozone Park as power demand soars with temps pushing 100 degree,” 4 New York reported.

It gets even worse.

500,000 customers are being urged to reduce their electricity use while the ConEd crews make repairs.

Per 4 New York: ConEd cuts voltage by 8% across parts of the Bronx, Westchester, Queens and Brooklyn under soaring demand. Nearly 500,000 customers are being urged to slash electricity use while crews make repairs. Neighborhoods include: Yonkers, Mount Vernon, New Rochelle, Mamaroneck, Pelham, Bronxville, Eastchester, Northeast Bronx, City Island, Glendale, Forest Hills, Ridgewood, Maspeth, Middle Village, Long Island City, Hunters Point, Sunnyside, Woodside, Bay Ridge, Park Slope, Sunset Park, Borough Park, Dyker Heights, Flatbush, Kensington, Bensonhurst and Windsor Terrace

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Conservative Catches CNN Host Abby Phillip in a Glaring Hypocrisy as She Defends Communist NYC Mayor Zohran Mamdani’s Absurd Demand on Air Conditioning

Notorious CNN host Abby Phillip’s efforts to defend communist New York City Mayor Zohran Mamdani’s demand for air conditioning went sideways when one of her guests caught her in a huge hypocrisy.

As The Gateway Pundit reported, Mamdani on Wednesday requested that New Yorkers set their thermostats to 78 degrees. He claimed this was to alleviate stress on the energy grid.

Temperatures are soaring into the triple digits in the Midwest and East Coast this week and into the July 4th holiday weekend.

“The best protection against extreme heat is air conditioning, he added. If you don’t have it at home, know now where you’ll go to stay cool. Check in on your neighbors, especially seniors, and if you see someone outside who appears to be in distress, call 311 so we can get help to them.

“This administration is using every tool we have to keep New Yorkers safe, but the strongest city is one where neighbors look out for one another. And to every business owner, please set your thermostats to 78 degrees to alleviate the stress on our grid.”

Of course, we all know the Gracie Mansion (where Mamdani lives) will be fully air-conditioned. According to Marxists like him, the rules should apply only to the masses.

Phillip, though, saw Mamdani’s demands as reasonable. During her show last night, she repeatedly cited then-South Carolina Governor Nikki Haley’s similar requests from a 2015 heat wave in the Palmetto State as a reason to let New Yorkers suffer.

Conservative guest Ben Ferguson then challenged Phillip by asking whether she raised the temperature in her home in solidarity with Mamdani. This caused the panel to go off the rails.

After the shouting died down, Ferguson dropped a bombshell: the CNN studio they were debating in was nowhere near 78 degrees.

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Mamdani Tells New Yorkers to Set Thermostats to 78 Degrees to Alleviate Stress on the Grid Amid Life-Threatening Heat Wave

Far-left NYC Mayor Zohran Mamdani on Wednesday urged New Yorkers to set their thermostats to 78 degrees to alleviate stress on the energy grid.

Temperatures are soaring into the triple digits in the Midwest and East Coast this week and into the July 4th holiday weekend.

Mamdani encouraged New Yorkers to raise their thermostats amid the life-threatening heat wave.

“I am asking every New Yorker to make a heat plan before the worst of this weather arrives,” said Mayor Mamdani on Wednesday.

“The best protection against extreme heat is air conditioning. If you don’t have it at home, know now where you’ll go to stay cool. Check in on your neighbors, especially seniors, and if you see someone outside who appears to be in distress, call 311 so we can get help to them. This administration is using every tool we have to keep New Yorkers safe, but the strongest city is one where neighbors look out for one another.”

“And to every business owner, please set your thermostats to 78 degrees to alleviate the stress on our grid,” Mamdani told New Yorkers.

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Are Taxpayers Helping to Finance America’s Data Center Boom?

“Government is the great fiction through which everybody endeavors to live at the expense of everybody else” ~ Frédéric Bastiat

A strikingly large number of massive data centers are being built across the United States. It is currently estimated that there are more than 4,000 data centers in the U.S., and more are on the way.

The federal government as well as local and state governments are providing financial incentives for these investments. Such incentives occur in an environment that lacks transparency and proper disclosure. As an extension of this opaqueness, the benefits to justify these subsidies also remain unclear. Many would argue that promises of job creation have been grossly overstated (and the data centers’ potential role in creating a digital control grid kept secret), while energy and resource concerns—as well as the potential costs of site cleanup if and when the facilities close down or fail—have been minimized. This, in addition to the secrecy surrounding the planning and financing of the data center industry, indicates that the negative impact to local residents and the American taxpayers may be substantial.

The following report examines this matter and is organized into two main sections. The first covers the federal layer of financial influence helping to advance the data center boom—the One Big Beautiful Bill. The second section focuses on the generous state and local government tax incentives, which are costing state governments billions in revenue losses. The conclusion elaborates on an opportunity to join the effort in seeking clarity on America’s data center industry, with additional resources provided in the links below.

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