North Alabama welcomes Google with its 14th data center! Yay Alabama! OK, so what does it actually mean?
There are two key takeaways that matter to you:
- It is now clear that clean, sustainable energy is extremely important to companies of the “new economy”.
- The Tennessee Valley Authority (TVA) is re-purposing its shuttered coal-fired power plants to create even more jobs and economic activity than these plants previously provided.
Importance of Google’s Alabama Campus in the New Economy
North Alabama has traditionally been extremely competitive in luring new companies to the area. That said, the game is changing and North Alabama is keeping up. Looking around the country you’ll notice that more and more companies are considering renewable energy and highly energy-efficient buildings as prerequisites for opening up shop. Want some examples?
- Volkswagen’s Chattanooga, TN plant is home to the first Leadership in Energy and Environmental Design (LEED) certified auto plant in the world. This plant is also home to a solar array that produces more than 13 gigawatt hours of energy or enough to take 1,200 area homes off the grid. You may remember that this plant came down to a decision between Chattanooga, TN and Huntsville, AL.
- Apple’s Claremont, NC data center is powered by 100% sustainable energy. Their acquisition went so well, they kept going with another 100-acre, 17.5 MW plant. Apple recently made a commitment to power 100 percent of their Apple Retail Stores with 100 percent renewable energy.
This means that as you see Alabama continues to compete for the jobs of the 21st century, expect more announcements like Google’s. Companies care about sustainable energy because their customers care about sustainable energy.
Oh and don’t forget, it saves them money too! Google’s newest technology allows them to get 3.5 times the computing power out of the same amount of energy, compared to just five years ago.
Re-purposing of Coal-Fired Power Plants
After the announcement that the Colbert Fossil Plant was closing, there was much speculation about what would become of the old sites. Additionally, while some employees were able to find work elsewhere in the TVA, many people were literally worrying about what they would do after their jobs were eliminated. Just a short time later, TVA announced that the site of the Colbert Fossil Plant would become home to Alabama’s largest solar power plant.
A recent study by the University of Alabama shows that the new solar-power plant will generate $52 million in additional local taxes and will create over 400 jobs with cumulative earning of over $24 million. Talk about a boom to the local economy! In fact it was so good Lauderdale County Commissioner Fay Parker said, “I have reviewed the study several times, just to make sure I was seeing what I was seeing.”
By itself, this conversion of the Colbert Fossil Plant was simply great news. But with the Google announcement, are we witnessing a clear strategy by TVA?
If so, we applaud them. As the numbers prove, these new sustainable-energy projects will generate more jobs, income, and tax revenues for their local areas than their predecessors did. In Stevenson, AL the announcement called for at least 100 “high paying jobs” which should be considered in contrast to the 90 jobs lost that probably paid less than Google. This doesn’t even consider the increase in tax revenue to the local school systems and Google’s well-known generosity.
Why old coal-fired power plants?
A couple of reasons. First, there is a significant amount of electrical transmission infrastructure already in place that is attractive to an energy-intensive project like a data center. Think about the money Google will save by building there or the money Alabama saved by not having to build out additional infrastructure as a recruiting incentive. Hint: your tax money was spent wisely! Second, coal-fired power plants typically use a lot of water, and data centers like Google’s can tap into that infrastructure, as well, for its own massive water needs.
Governments also care about sustainable energy because it is now a proven way to create more jobs and increase local tax revenues. Additionally, they can use their recruiting incentives in a more targeted way by properly utilizing existing infrastructure.
So what does it matter for you? Wouldn’t you want to work for Google? Take a peek inside of a Google data center and let us know in the comments.