2025-12-01 11:09

Residents fear data centers will raise utility bills and strain resources Local opposition unites farmers, environmentalists and homeowners across party lines Pennsylvania utilities project sharp rise in electricity demand from data centers by decade's end DANVILLE, Pennsylvania, Dec 1 (Reuters) - The residents came in camouflage hats and red shirts signaling unity, more than 300 of them packing into a rural Pennsylvania planning commission meeting to protest a proposed data center they feared would carve up their farmland and upend the quiet rhythms of their valley. Most were loyal supporters of President Donald Trump, who carried their home of Montour County by 20 percentage points in the 2024 election. But they bristled at Washington’s push to fast-track artificial intelligence infrastructure, which has driven data-center growth in rural areas around the U.S. where land is cheap. Sign up here. On a recent November evening, residents in this county of 18,000 people stepped to the microphone, questioning Talen Energy (TLN.O) , opens new tab officials about how their planned data center might raise residents' utility bills, reduce working farmland, and strain local water and natural resources. "Say no to rezoning, so water keeps flowing and crops keep growing," two women sang in a riff on Woody Guthrie's folk song "This Land Is Your Land." Political leaders across the U.S. are urging a rapid expansion of data-center capacity and new power production to keep the country competitive in AI. Trump, a Republican, is promoting the build-out as an economic and national security priority and has directed his administration to bypass environmental rules and permitting that give local communities a voice. In Pennsylvania, Democratic Governor Josh Shapiro and Republican Senator Dave McCormick are courting developers with incentives and infrastructure upgrades to attract investment in the fast-growing industry. Some communities welcome the economic boost. But the backlash in Montour County, nestled in central Pennsylvania, reflects a growing coalition of farmers, environmentalists and homeowners who have united across partisan lines to resist data-center expansion. A report by Data Center Watch earlier this year found that about $64 billion worth of data center projects have been blocked or delayed amid local pushback in states including Texas, Oregon and Tennessee. Critics in Pennsylvania worry that their region could turn into northern Virginia’s “data center alley,” with its vast, sprawling complexes. If successful, the pushback threatens to slow efforts by the administration and the tech industry to build AI infrastructure fast enough to keep pace with global rivals. Political strategists say anger over the projects also could add to the problems Republicans face as they grapple with affordability worries going into the 2026 midterm elections. “It’s an issue that can be exploited by whoever’s out of power,” said Chris Borick, a political science professor at Muhlenberg College in Allentown, Pennsylvania. The politics of AI infrastructure, he added, remain unsettled: “The industry’s still evolving, and politicians are figuring out where to stand. It’s like social media — everyone rushed in before understanding the consequences.” PRESERVING CULTURE Talen Energy is requesting to rezone roughly 1,300 acres in Montour County from agricultural to industrial use, the first step toward building a large data center that would include 12 to 15 buildings. The site would sit in the shadow of the company's 1,528-megawatt natural-gas-fired power plant, tucked among farmland and dirt roads used heavily by the region’s Amish community. Talen Energy has said the project would take 350 acres of farmland supporting soybeans, corn and livestock. Residents worry that losing this land would weaken the local farm economy, including a nearby plant that processes soybeans for regional food and feed. Montour County Commissioner Rebecca Dressler, a Republican, said the concerns are rooted less in ideology than in preserving the region’s character. “Small-town character defines our community,” Dressler said. “People aren’t anti-development - they just want growth that fits who we are.” At its recent November meeting, the county planning commission recommended against approving the rezoning by a 6-1 vote - a decision that drew thunderous applause. The issue now goes to Dressler and the other two county commissioners for a final decision in mid-December. Rather than blaming Trump, residents are pointing their fingers at the billion-dollar companies behind the data-center boom - firms they say have the money to snap up farmland, reshape rural landscapes and leave locals to absorb the higher utility costs. “I think it’s a society that has forgotten about the small person - the people who live here, the farmers who are struggling with the economy,” said Theresa McCollum, a 70-year-old Trump supporter. In a place that prides itself on local control, the shift in power to Washington does not sit well. “Stay out. We wouldn’t even be having this conversation without federal involvement,” said Craig High, 39, also a Trump supporter. “Both (political) parties are pushing data centers and giving regulatory relief — water permits, permitting, all of it.” PENNSYLVANIA BOOM Pennsylvania’s abundant, stable electricity has made it a hot spot for data centers, attracting tens of billions in investments from Amazon.com (AMZN.O) , opens new tab, Alphabet's (GOOGL.O) , opens new tab Google, and Microsoft (MSFT.O) , opens new tab, with Constellation Energy (CEG.O) , opens new tab even eying the old Three Mile Island nuclear power plant to power new server farms. But residents fear they may end up paying for it. Pennsylvania utilities project a sharp rise in electricity demand from data centers by the end of the decade - enough to power several million additional homes, according to data from PJM Interconnection, the region’s grid operator. Electricity prices in Pennsylvania increased by about 15% in the past year - roughly double the national average, according to federal data. That surge is already rippling through the regional grid. Capacity prices, which help determine what power plants are paid to ensure supply during peak demand, have spiked in recent auctions, and utilities have begun raising rates to cover growing infrastructure needs. Analysts warn that customers' bills could climb significantly in the years ahead. For many families, the strain is already visible. Overdue utility balances have risen far faster than inflation since 2022, and Pennsylvania ranks among the states with the highest levels of household energy debt, according to the Century Foundation, a progressive research organization. Those pocketbook pressures are starting to reshape politics in some parts of the United States. Earlier this year, Alicia Johnson became one of two Democrats elected to Georgia’s utility board since 2007 after her campaign highlighted frustration over rising power bills and unchecked growth of data centers. She said the issues in her campaign were a preview of what states like Pennsylvania may face in next year's U.S. midterm elections. Power prices have surged in Georgia in recent years, in large part because of massive cost overruns at the new Vogtle nuclear plant. “Data centers and utility costs were the top two issues on the ballot, and people are angry,” Johnson said. “They don’t want data centers without guardrails, and they don’t want to be the ones paying for them. This is going to be part of the national affordability debate in 2026." Ginny Marcille-Kerslake, an organizer with Food and Water Watch, an environmental nonprofit group, has spent months mobilizing opposition to data centers in places like Montour County. She predicted a political reckoning next year. "Communities - red, blue, and everything in between - are united in opposition," she said, referring to so-called red areas dominated by Republicans and blue areas controlled by Democrats. "At a time when we’re so divided, this issue is bringing people together." https://www.reuters.com/business/retail-consumer/trumps-push-more-ai-data-centers-faces-backlash-his-own-voters-2025-12-01/

2025-12-01 11:08

VTB will need 1.7 trln roubles in capital in next 5 years VTB expects 500 bln roubles in profit in 2025 VTB expects to pay up to 50% of 2025 net profit in dividends VTB CEO says economy is holding up MOSCOW, Dec 1 (Reuters) - Finding sources of new capital will be the main challenge for Russian banks in 2026 due to the central bank tightening capital requirement rules, the CEO of Russia's second largest lender VTB Andrei Kostin told Reuters. The Russian banking sector, led by VTB and its rival Sberbank, performed relatively well despite Western sanctions during almost four years of the conflict in Ukraine, with banks posting record profits last year. Sign up here. However, as economic growth is set to slow to about 1% in 2025 from 4.3% last year, and with interest rates staying high, the banks' loan portfolio is starting to deteriorate while the central bank is tightening regulation. "We have a number of changes planned by the central bank aimed at strengthening regulation and calculating capital for non-core assets. Further raising of capital will be a challenging task," Kostin said. The central bank is gradually restoring the international Basel rules which it had softened in 2022. It has also been raising capital requirements for "systemically important" banks such as VTB. Kostin estimated that in order to meet the central bank's regulatory requirements VTB alone will need 1.7 trillion roubles ($22 billion) over the next five years. He said the Russian equity market in the absence of Western funds was too shallow for raising capital. Despite the economic downturn, VTB plans to post 500 billion roubles in net profit this year and pay between 25% and 50% of 2025 net profit in dividends. Some critics have lambasted the banks for making hefty profits amid the economic downturn. "This (VTB profits) provokes a mixed reaction in many, even envy among some in the oil industry, although their situation isn't that bad," Kostin said. He added that the bank's retail business was underperforming due to the loss-making home loans segment. Kostin said that he expected the central bank to cut the key interest rate by 50 basis points to 16% at the next board meeting in December and to bring it to 12% or 13% by the end of next year. He said that tax hikes in 2026, in addition to high interest rates, will have a negative impact on economic activity, ultimately leading to lower tax revenues, but the bank did not sense an upcoming crisis. "So far, the economy is holding up; we do not feel a crisis in the real sector," Kostin said. ($1 = 77.6000 roubles) https://www.reuters.com/sustainability/boards-policy-regulation/russian-banks-main-challenge-2026-will-be-raising-capital-vtb-ceo-says-2025-12-01/

2025-12-01 11:04

At least 176 people killed in southern Thailand PM Anutin's popularity down by half, poll shows Government response 'flawed', says Anutin Thailand expected to hold snap polls in March BANGKOK, Dec 1 (Reuters) - Thailand’s Prime Minister Anutin Charnvirakul is facing mounting criticism over his government’s slow response to deadly floods in the south, threatening to derail his party’s ambitions ahead of a snap election. At least 176 people have been killed by some of the heaviest flooding in decades that swept through eight provinces in southern Thailand last month, with most of the fatalities in and around the regional commercial hub of Hat Yai. Sign up here. The disaster, triggered by the heaviest day of rains to hit Hat Yai in three centuries, was the first major test for the 59-year-old power broker who took office in September, after his predecessor was removed by a court order. Voters in flood-hit provinces and analysts are now questioning whether his Bhumjaithai Party can deliver on promises as the country heads toward elections expected in March or April. "This flood has greatly affected the popularity of Anutin and the government because it appears that, in emergencies, Anutin is relatively unsystematic in his management," Sukhum Nuansakul, a political analyst told Reuters. "His popularity has dropped." Floods and landslides across Southeast Asia have killed close to 700 people, most of them in Indonesia, where over 500 people are still missing. POLLS SHOW SUPPORT SLIPPING Speaking to reporters on Monday, Anutin said he wasn't thinking about losing support in the south, adding: "I am only thinking about how to help the people." A poll by Suan Dusit University conducted last week, during the peak of the flooding, found that Anutin's standing had slipped from 48% of respondents backing him down to 23%. "The flooding not only caused damage to the people but also significantly impacted the government's popularity," said the survey, which polled 2,208 respondents, released on Sunday. Three days of heavy downpours, starting on November 19, dumped 630 mm (25 inches) of rain onto Hat Yai and the surrounding area, but the government's response was initially slow, with relief efforts accelerating after the military was put in charge nearly a week later. Another poll by the National Institute of Development Administration released on Sunday, which surveyed 2,000 people in 14 southern provinces before the flooding, showed Anutin stood only third in the list of leading prime ministerial choices, with 15.4% of the support. PRIME MINISTER'S PARTY SOUTHERN OBJECTIVES Anutin's Bhumjaithai Party, which currently holds only 70 seats in the 493-member lower house of parliament, has its stronghold in the country's lower-northeast, but has set its sights on winning at least 30 seats in the southern provinces. The prime minister, as part of a deal with the opposition to take power, has vowed to dissolve parliament by the end of January, with a general election expected to follow in late March. In Hat Yai, Thailand's fifth-largest city, residents said they had not received clear warnings from local authorities as the incessant rains swelled water levels, trapping many inside their homes for days. "There is a tremendous amount of anger," said Kiranee Tammapiban-udom, a voter from Hat Yai who works in the capital Bangkok. "It will very hard for Bhumjaithai to get the 30 seats they are targeting." After a visit to the Hat Yai area, Anutin on Saturday apologised for his government's performance and promised to speed up the recovery process. "The government is flawed, I accept it," he said. "When there is death, when there are losses, when people cannot live in their homes... it is only the prime minister's fault." Bhumjaithai's strength will also depend on how its regional ally, the Klatham Party led by Deputy Prime Minister Thammanat Prompao, performs in the next polls. "Thammanat's visits to the affected areas did not help improve the government's popularity," Sukhum said. "If the government introduces relief and compensation measures that satisfy the people, their popularity may improve somewhat." https://www.reuters.com/business/environment/thailand-floods-hit-pm-anutins-popularity-ahead-snap-polls-2025-12-01/

2025-12-01 10:13

LONDON, Dec 1 (Reuters) - British lenders approved more mortgages than expected in October, despite concerns about finance minister Rachel Reeves' budget, and consumer credit grew at a slower pace than in September, Bank of England data showed on Monday. The BoE said 65,018 mortgages were approved in October, down from 65,647 in September and the lowest since May. Economists polled by Reuters had pointed to 64,200 approvals during the month. Sign up here. Reeves raised taxes in last week's budget with higher levies on expensive homes among the measures announced last week. The BoE's data showed approvals for people looking to re-mortgage fell by the most in October since February. Net mortgage lending - which reflects completed house purchases - fell to a net 4.273 billion pounds compared with a rise of 5.223 billion pounds in September. Simon Gammon, managing partner at Knight Frank Finance, said uncertainty about tax rises and a "steady drip of policy leaks" hit sentiment in the housing market. "That said, the fall in approvals was small. Monthly transaction activity has been broadly in-line with pre-pandemic levels since the summer, which is a display of resilience given the weakening economy and the uncertain fiscal outlook. Aspects of that uncertainty have now passed and the Bank of England looks on course to cut the base rate in December." The BoE's data also showed consumers borrowed at a slower rate ahead of Reeves' tax and spending plan. Net consumer borrowing rose by 1.1 billion pounds ($1.45 billion) in October, less than the 1.35 billion-pound forecast in the Reuters poll of economists. The increase was below September's 1.398 billion pound rise, leaving the annual rate of consumer credit growth unchanged at 7.2%, joint-highest since October 2024. Official data published ahead of the budget showed a drop in retail sales and consumer confidence in October. ($1 = 0.7561 pounds) https://www.reuters.com/world/uk/uk-lenders-approve-more-mortgages-than-expected-october-2025-12-01/

2025-12-01 07:20

BANGKOK, Dec 1 (Reuters) - Thailand's central bank is planning measures to ease the upward pressure on the baht , including having banks tighten their controls on gold-related foreign exchange transactions and requiring major gold traders to supply their transaction data. The baht has strengthened by 7% against the dollar so far this year to be Asia's second-best performing currency. The baht's appreciation is seen as a threat to the competitiveness of the export and tourism sectors. Sign up here. The Bank of Thailand is closely monitoring the baht and will act on any volatility to reduce the impact on businesses, it said in a statement. The BOT said it will propose the Finance Ministry increase the limit for foreign income that does not need to be repatriated to $10 million per transaction, up from the current $1 million per transaction, to take effect this month. The higher limit would provide greater flexibility for the private sector in managing foreign currency and ease the pressure on the baht to rise by reducing the amount of foreign exchange being brought into the country. Earlier on Monday, central bank governor Vitai Ratanakorn said he saw room to cut interest rates, but added such a move had only a limited impact on an economy facing structural problems. The central bank has cut its policy rate four times over the past year, taking it to a three-year low, to support a sluggish economy. Its next policy review is on December 17, and some economists expect a further rate reduction. It unexpectedly left the key rate (THCBIR=ECI) , opens new tab unchanged at 1.50% at its review in October. https://www.reuters.com/sustainability/boards-policy-regulation/thai-central-bank-planning-measures-ease-strong-baht-sees-room-rate-cuts-2025-12-01/

2025-12-01 07:17

European firms look to move supply chains due to export controls 40% of respondents say China is processing export licenses slowly Survey casts doubt on optimism over Trump-Xi summit in Korea, analyst says BEIJING, Dec 1 (Reuters) - China's tightening export controls are pushing European firms to explore new supply chain capacity outside of the world's second-largest economy, a European lobbying group said on Monday, seeking cover from the U.S.-China trade war. The European Union Chamber of Commerce in China said one in three member companies was looking to shift sourcing away from China due to Beijing's export control regime, with 40% of its flash survey's respondents reporting that the commerce ministry is processing export licences more slowly than promised. Sign up here. "China's export controls have increased the uncertainty felt by European businesses operating in the country, with companies facing the risks of production slowdowns or even stoppages," said Jens Eskelund, the chamber's president. The curbs have "added more pressure to a global trade system that was already under a great deal of stress," he added. Some 130 companies participated in the survey, the chamber said, which counts German automakers BMW (BMWG.DE) , opens new tab and Volkswagen (VOWG.DE) , opens new tab, Finnish telecommunications maker Nokia and French oil major TotalEnergies (TTEF.PA) , opens new tab as members. Beijing shocked the U.S. in October when it threatened even tighter controls over rare-earth exports, underscoring China's willingness to flex its muscles to keep Washington pressured in trade talks. The move raised fresh concerns among European companies that their supply chains could again be upended as they had been by similar curbs in April. April's curbs forced some EU automakers to shut down production lines, as Beijing's move to suspend exports of a wide range of rare earths and related magnets - seemingly to squeeze U.S. military contractors and automakers - caused supplies to dry up globally. "These survey results are significant because they paint a picture that runs counter to the post-Busan summit optimism," said Alfredo Montufar-Helu, a managing director at Ankura Consulting. He was referring to a pause in Beijing's new export curbs negotiated at a U.S.-China summit in the South Korean city of Busan. "The reality is that the deal was not signed in ink: Washington and Beijing are still debating the scope of concessions, while the EU is pushing for inclusion. Implementation is taking time, and in that gap, global supply chains are paying the price." Nearly 70% of respondents to the chamber's flash survey said their overseas production facilities depended on Chinese components covered by the export control regime, while 50% of exporting firms reported that their suppliers or customers made goods that were subject to the controls or would be soon. EU firms said that the commerce ministry's licence-application process was taking longer than the promised 45 days, with respondents also taking issue with its lack of transparency and disclosure requirements. They also raised concerns about potential intellectual property theft. The survey also provided redacted examples of firms that were impacted by Beijing's export controls, including one that estimated the measures would lead to costs totalling 20% of its global revenue this year, while another said it expected to incur costs in excess of 250 million euros ($289.8 million). But 56 out of the 131 European firms that answered the survey said the export controls would have no impact, suggesting some sectors remain insulated. https://www.reuters.com/business/autos-transportation/china-export-controls-push-european-firms-move-supply-chains-2025-12-01/