Surge in Internet Use, Energy Costs Has Big Tech Firms Seeking Power

SURGE IN INTERNET USE, ENERGY COSTS HAS BIG TECH FIRMS SEEKING POWER
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney kevin.delaney@wsj.com and Rebecca Smith]
With both Internet services and power costs soaring, big technology companies are scouring the nation to secure enough of the cheap electricity that is vital to their growth. The search is being led by companies including Microsoft Corp., Yahoo Inc. and IAC/InterActiveCorp. Big Internet firms have been adding thousands of computer servers to data centers to handle heavy customer use of their services, including ambitious new offerings such as online video. But that is feeding a thirst for more power. One large data center can consume enough juice to power a small city of 30,000 to 40,000 people -- and also requires a fat Internet linkup to stay connected to the outside world. The power-guzzling centers are such big energy users that shaving as little as a penny per kilowatt-hour from electricity rates can knock off millions of dollars in annual expenses. Some Internet executives say electricity has become a closely watched expense and can even be a factor when they consider rolling out new services. While always a concern, the cost of power has become more important amid a recent run-up in energy prices and increased use at data centers. To satisfy their power needs, Internet companies are exploring options ranging from building facilities in former defense bunkers -- which already have rugged grid connections -- to plunking themselves down near hydroelectric plants to get a slice of the inexpensive power. Anticipating demand a decade from now, some executives even are mulling whether proximity to nuclear-power plants could be a plus.
http://online.wsj.com/article/SB115016534015978590.html?mod=todays_us_page_one
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