Economic Archives | Page 219 of 684 | Digital Watch Observatory

Rising data centre demand pushes utilities to invest

US electricity prices are rising as the energy demands of data centres surge, driven by the rapid growth of AI technologies. The average retail price per kilowatt-hour increased by 6.5% between May 2024 and May 2025, with some states experiencing significantly sharper increases.

Maine saw the sharpest rise in electricity prices at 36.3%, with Connecticut and Utah following closely behind. Utilities are passing on infrastructure costs, including new transmission lines, to consumers. In Northern Virginia, residents could face monthly bill increases of up to $37 by 2040.

Analysts warn that the shift to generative AI will lead to a 160% surge in energy use at data centres by 2030. Water use is also rising sharply, as Google reported its facilities consumed around 6 billion gallons in 2024 alone, amid intensifying global AI competition.

Tech giants are turning to alternative energy to keep pace. Google has announced plans to power data centres with small nuclear reactors through a partnership with Kairos Power, while Microsoft and Amazon are ramping up nuclear investments to secure long-term supply.

President Donald Trump has pledged more than $92 billion in AI and energy infrastructure investments, underlining Washington’s push to ensure the US remains competitive in the AI race despite mounting strain on the grid and water resources.

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German state pushes digital sovereignty

The northern German state of Schleswig-Holstein is pushing ahead with an ambitious plan to replace Microsoft software in its public administration with open-source alternatives.

With around 30,000 civil servants, a workforce comparable to the European Commission, the region has already migrated most staff to new systems. It expects to cut its Office licences by more than two-thirds before the end of the month.

Instead of relying on Word, Outlook or SharePoint, staff are switching to LibreOffice, Thunderbird, Open Xchange and Nextcloud. A Linux pilot is also underway, testing the replacement of Windows itself.

The digital minister, Dirk Schrödter, admitted the schedule is tight but said that 24,000 employees are already using the new setup. By 2029, only a handful of Microsoft licences should remain, kept for compatibility with federal services.

A transition that has not been free of challenges. Some judges have called for a return to Outlook, citing outages, while larger providers such as SAP have proven difficult to adapt.

Still, Schrödter argued the investment is about sovereignty rather than cost-cutting, comparing Europe’s reliance on Big Tech to its dependence on Russian gas before 2022. He urged Brussels to prioritise open-source solutions in procurement rules to reduce dependence on foreign tech giants.

Although Schleswig-Holstein is a relatively small region, its programme has already influenced wider German and European initiatives.

Similar efforts, including Germany’s OpenDesk project, have gained traction in France, Italy and the Netherlands, with several governments now watching the experiment closely.

Schrödter said the state’s progress surprises many observers, but he believes it shows how public administrations can regain control of their digital infrastructure.

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Scientist and DeepMind’s CEO Demis Hassabis says learning how to learn is key to the AI future

The Nobel laureate, Demis Hassabis, has argued that the most crucial ability for the next generation will be learning how to learn.

Speaking at the Odeon of Herodes Atticus in Athens, Greece, he said adaptability was vital as AI reshapes work and education.

The neuroscientist and former chess prodigy predicted that AGI machines with human-level versatility could emerge within a decade. He described it as a development that may create a future of radical abundance, although he warned of risks.

Hassabis urged a stronger focus on ‘meta-skills’ such as optimising approaches to new subjects, instead of relying solely on traditional disciplines.

Given the speed of technological change, he emphasised that people will need to update their knowledge continuously throughout their careers.

His remarks came during a discussion with Greek Prime Minister Kyriakos Mitsotakis, who warned that the unchecked growth of technology giants could fuel economic inequality and social unrest if citizens do not see clear benefits from AI adoption.

Hassabis’s work on protein folding won him the 2024 Nobel Prize in chemistry.

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xAI cuts 500 jobs as focus turns to specialist AI tutors

Elon Musk’s company xAI has laid off around 500 staff from its data annotation team after deciding to reduce its focus on general AI tutors. The employees were told their system access would be revoked immediately, although salaries will be paid until contracts end or until 30 November.

According to reports, the company will instead invest more heavily in specialist AI tutors for areas such as video games, web design, data science, medicine, and STEM.

xAI announced plans to expand the specialist team tenfold, describing the roles as highly valuable to developing its technology.

The shift comes as xAI continues to promote its chatbot Grok. Musk recently highlighted its predictive abilities, sharing benchmarks that measure performance in forecasting politics, economics, sports, and cultural events.

Observers see the move toward specialist tutors as a way to refine Grok’s training and strengthen its commercial applications.

The layoffs follow earlier signs of restructuring, with some senior staff reportedly losing access to internal systems before the formal announcement.

Analysts suggest the changes reflect a strategic recalibration, aiming to boost productivity instead of spreading resources too thinly across generalist roles.

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Integratel Perú secures spectrum to boost 5G rollout

Integratel Perú has secured a 100 MHz spectrum block to accelerate the deployment of 5G, laying the foundation for faster connections, lower latency, and greater device capacity.

A move that is expected to boost Peru’s digital transformation and strengthen local industries’ competitiveness.

The company has already modernised 1,400 antennas as part of a wider network upgrade that will continue into 2027, preparing the ground for nationwide 5G rollout once fully authorised.

Under its Movistar Empresas brand, Integratel plans to enhance digital services, including personnel identification systems that use cameras to verify protective equipment in restricted areas. With 5G, such tools will deliver more explicit images and real-time alerts, reducing human oversight.

As part of its spectrum award commitments, Integratel will expand 4G coverage to 437 rural locations and extend connectivity along 545 kilometres of roads.

It will also deliver 5G to 92 public institutions, including schools, hospitals, and Pan American Games venues, ensuring wider access to advanced connectivity nationwide.

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Apple notifies French users after commercial spyware threats surge

France’s national cybersecurity agency, CERT-FR, has confirmed that Apple issued another set of threat notifications on 3 September 2025. The alerts inform certain users that devices linked to their iCloud accounts may have been targeted by spyware.

These latest alerts mark this year’s fourth campaign, following earlier waves in March, April and June. Targeted individuals include journalists, activists, politicians, lawyers and senior officials.

CERT-FR says the attacks are highly sophisticated and involve mercenary spyware tools. Many intrusions appear to exploit zero-day or zero-click vulnerabilities, meaning no victim interaction must be compromised.

Apple advises victims to preserve threat notifications, avoid altering device settings that could obscure forensic evidence, and contact authorities and cybersecurity specialists. Users are encouraged to enable features like Lockdown Mode and update devices.

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EDPB adopts guidelines on the interplay between DSA and GDPR

The European Data Protection Board (EDPB) has adopted its first guidelines on how the Digital Services Act (DSA) and the General Data Protection Regulation (GDPR) work together. The aim is to understand how GDPR should be applied in the context of DSA.

Presented during the EDPB’s September plenary, the guidelines ensure consistent interpretation where the DSA involves personal data processing by online intermediaries like search engines and platforms. While enforcement of DSA falls under authorities’ discretion, the EDPB’s input supports harmonised application across the EU’s evolving digital regulatory framework, including:

Notice-and-action systems that help individuals or entities report illegal content,
Recommender systems used by online platforms to automatically present specific content to the users of the platform with a particular relative order or prominence,
The provisions to ensure minors’ privacy, safety, and security and prohibit profile-based advertising using their data are presented to them.
transparency of advertising by online platforms, and
Prohibition of profiling-based advertising using special categories of data.

Following initial guidelines on the GDPR and DSA, the EDPB is now working with the European Commission on joint guidelines covering the interplay between the Digital Markets Act (DMA) and GDPR, as well as between the upcoming AI Act and the EU data protection laws. The aim is to ensure consistency and coherent safeguards across the evolving regulatory landscape.

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EU enforces tougher cybersecurity rules under NIS2

The European Union’s NIS2 directive has officially come into force, imposing stricter cybersecurity duties on thousands of organisations.

Adopted in 2022 and implemented into national law by late 2024, the rules extend beyond critical infrastructure to cover more industries. Energy, healthcare, transport, ICT, and even waste management firms now face mandatory compliance.

Measures include multifactor authentication, encryption, backup systems, and stronger supply chain security. Senior executives are held directly responsible for failures, with penalties ranging from heavy fines to operational restrictions.

Companies must also report major incidents promptly to national authorities. Unlike ISO certifications, NIS2 requires organisations to prove compliance through internal processes or independent audits, depending on national enforcement.

Analysts warn that firms still reliant on legacy systems face a difficult transition. Yet experts agree the directive signals a decisive shift: cybersecurity is now a legal duty, not simply best practice.

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DOJ accuses Uber of violating disability law

The US Justice Department has filed a lawsuit against Uber, accusing the ride-hailing giant of discriminating against passengers with disabilities.

The DOJ alleges that Uber drivers frequently deny service to people using wheelchairs or travelling with service animals, and sometimes impose unfair cancellation fees. Prosecutors say such practices cause economic and emotional harm and breach the Americans with Disabilities Act.

Uber denies the allegations, insisting it enforces a zero-tolerance policy for confirmed denials. The company says it deactivates drivers who breach accessibility rules and highlights reminders it issues to drivers about their legal obligations.

Uber has faced similar claims in the past. It reached a settlement with the DOJ in 2022, paying millions to more than 65,000 disabled riders. The new lawsuit, filed in the US California’s Northern District, follows a DOJ investigation launched last year.

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Ukraine urges ethical use of AI in education

AI can help build individual learning paths for Ukraine’s 3.5 million students, but its use must remain ethical, First Deputy Minister of Education and Science Yevhen Kudriavets has said.

Speaking to UNN, Kudriavets stressed that AI can analyse large volumes of information and help students acquire the knowledge they need more efficiently. He said AI could construct individual learning trajectories faster than teachers working manually.

He warned, however, that AI should not replace the educational process and that safeguards must be found to prevent misuse.

Kudriavets also said students in Ukraine should understand the reasons behind using AI, adding that it should be used to achieve knowledge rather than to obtain grades.

The deputy minister emphasised that technology itself is neutral, and how people choose to apply it determines whether it benefits education.

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