2025-08-14 12:07
NEW YORK, Aug 14 (Reuters) - Major data center developer and operator Equinix (EQIX.O) , opens new tab has entered into several advanced nuclear electricity deals, including power purchase agreements for fission energy and pre-ordering microreactors for its operations, the company said on Thursday. Big Tech's race to expand technologies like generative artificial intelligence, which requires warehouse-like data centers that can require city-sized amounts of electricity at a single site, is driving up global energy consumption and raising fears about depleted power supplies. Sign up here. The voracious energy needs of data centers has led to a rising number of preliminary power deals to fuel data centers with advanced nuclear energy. Small modular reactors and other next-generation energy is not yet commercially available in the U.S., the world's data center hub. The Equinix announcement follows news that the U.S. Department of Energy earlier had selected an initial 11 projects for a pilot program seeking to develop high-tech test nuclear reactors with the aim of getting three of the projects operating in less than a year. Equinix's deals with advanced nuclear providers would supply more than 1 gigawatt of electricity to the company's data centers. Among the agreements, Equinix plans to procure 500 megawatts of energy from California-based Oklo's next-generation nuclear fission powerhouses. It also entered into a preorder agreement for 20 transportable microreactors from Radiant Nuclear, which is also based in California. In Europe, Equinix's agreements to eventually purchase power from next-generation nuclear developers, ULC-Energy and Stellaria. Equinix also entered into advanced fuel cell agreements with Bloom Energy, based in Silicon Valley. The agreements are part of Equinix's long-term planning for electricity to use for its data centers, as opposed to a quick-fix solution, Raouf Abdel, Equinix’s executive vice president of global operations, told Reuters. https://www.reuters.com/business/energy/equinix-enters-into-multiple-advanced-nuclear-deals-power-data-centers-2025-08-14/
2025-08-14 11:32
Q2 net profit up 27% on-year, beating market forecasts Foxconn bullish on AI server demand Warns of challenge from tariffs, currency exchange rate TAIPEI, Aug 14 (Reuters) - Foxconn on Thursday forecast a significant rise in third-quarter revenue as the world's biggest iPhone maker said it had for the first time made more money from its AI server business than from smart electronics last quarter. The company (2317.TW) , opens new tab said artificial intelligence server revenue is expected to leap more than 170% year-on-year in the coming quarter, though it also warned of uncertainty from U.S. tariffs. Sign up here. Nvidia's (NVDA.O) , opens new tab biggest server maker and Apple's (AAPL.O) , opens new tab top iPhone assembler has been riding a data centre boom, as cloud computing firms such as Amazon (AMZN.O) , opens new tab, Microsoft (MSFT.O) , opens new tab and Alphabet's (GOOGL.O) , opens new tab Google spend billions of dollars to expand their AI infrastructure and research capacity. Cloud and networking products, which include servers, accounted for 41% of its revenue in the second quarter, while smart consumer products represented 35%, the company said. The contribution from the server business to its revenue is set to grow further in the current quarter, as Foxconn expects a slight decline in smart consumer electronics revenue. Some experts expect iPhone sales to slow after they surged in the June quarter ahead of the expected imposition of U.S. tariffs. "AI has been the primary growth driver so far this year," Kathy Yang, rotating CEO of Foxconn, said on a call with media and analysts. She warned however that "close attention is needed due to the impact of changes in tariffs and exchange rates". The company said on Thursday its capital spending would rise more than 20% this year, as it plans to boost server production capacity in its manufacturing sites in Texas and Wisconsin. Global trade uncertainty and particularly the trade spat between the U.S. and China could dim its outlook this year as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the U.S. are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. LORDSTOWN SOLD Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility. The company said the Ohio plant would be used to manufacture cloud-related products. The goal of manufacturing its Model C EV for the U.S. market remains unchanged, although initial production will take place in Taiwan, Foxconn said. A source familiar with the matter told Reuters that the plant was sold to its partner SoftBank. Foxconn and SoftBank declined to comment. Overall, the company reported net profit for the April-June period of T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG. Foxconn, formally Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products, but cautioned over geopolitical and exchange rate headwinds. Its shares have risen 8.4% so far this year, outperforming the broader Taiwan index's (.TWII) , opens new tab 5.2% gain. They closed up 0.5% on Thursday ahead of the earnings release. ($1 = 29.9600 Taiwan dollars) https://www.reuters.com/world/china/foxconn-sees-robust-ai-demand-second-quarter-profit-tops-forecast-2025-08-14/
2025-08-14 11:27
Fed interest rate cut near certain after inflation data Focus on US Producer Price Index, jobless claims data Aug 14 (Reuters) - Gold prices edged down on Thursday due to a slight uptick in the U.S. dollar index, although expectations of a Federal Reserve interest rate cut in September limited losses. Spot gold fell 0.1% to $3,353.19 per ounce as of 1050 GMT. U.S. gold futures for December delivery were down 0.2% to $3,401.60. Sign up here. The dollar (.DXY) , opens new tab steadied from an over-two-week low against its rivals, making gold more expensive for holders of other currencies. "The marginal reduction in gold since this morning could be just chalked down to a slightly firmer dollar," said Nitesh Shah, commodities strategist at WisdomTree. However, growing signals that the Fed has room to cut U.S. interest rates were giving gold support, Shah said. The likelihood of a Fed rate cut in September is now near certain, after new data showed U.S. inflation increased at a moderate pace in July and Treasury Secretary Scott Bessent said he thought an aggressive half-point cut was possible given recent weak employment numbers. Non-yielding gold thrives in a low-interest-rate environment. Meanwhile, benchmark 10-year U.S. Treasury yields held near a one-week low. Investors awaited U.S. economic data scheduled later in the day, including the U.S. Producer Price Index and weekly jobless claims, for further cues on the direction of the Fed's monetary policy. "The rate cuts are very much fairly priced in but towards the end of this year we'll start to see a market movement upwards in gold as concerns around higher indebtedness really start to move the metal higher," Shah said. Meanwhile, U.S. President Donald Trump threatened "severe consequences" if Russia's President Vladimir Putin did not agree to peace in Ukraine at their upcoming summit, but also said the meeting could be followed by a second one which would include Ukraine's leader. Elsewhere, spot silver lost 0.5% to $38.30 per ounce, platinum gained 0.6% to $1,348.10 and palladium rose 0.7% to $1,130.02. https://www.reuters.com/world/china/gold-edges-lower-firmer-dollar-investors-await-us-economic-data-2025-08-14/
2025-08-14 11:27
H1 profit slipped despite higher revenue, more boxes moved Impact of Suez crisis, tariffs, Gemini venture hiked costs Savings programme underway, of which Gemini to bring half May improve revenue, but shipping costs are eating up gains FRANKFURT, Aug 14 (Reuters) - Container shipping firm Hapag-Lloyd (HLAG.DE) , opens new tab on Thursday reported a 3.1% decline in first-half net income and lowered the top end of its full-year earnings forecast, which has prompted it to focus on cost savings over the next 12-18 months. CEO Rolf Habben Jansen told analysts that start-up spending on its Gemini cooperation with competitor Maersk (MAERSKb.CO) , opens new tab, fidgety customers amid changing U.S. trade policies, and virtual closure of the Suez Canal weighed on profits. Sign up here. "The Gemini transition cost was a three-million dollar digit figure," said Habben Jansen in a call with analysts, adding port congestions amid tariff to and fro, as well as costly alternatives to the Suez route had also led to spiralling costs. "A 1 billion euros (savings programme) is realistic to (be achieved) by the end of next year," he added. Houthi militant attacks on vessel owners in the Middle East forced shippers to avoid the region. Germany's Hapag-Lloyd, the world's fifth-largest shipping firm, earlier projected full-year earnings before interest and taxes ranging between 200 million euros and 1.1 billion euros, compared with a previously expected range of breakeven to 1.5 billion euros. Core profit was 24% lower at 619 million euros in the six months at the German company. Its stock in a small free float was 7.2% down at 1100 GMT. Net income in the first half fell 3.1% to 709 million euros ($829 million) while revenues were up 10% at 9.7 billion euros and transport volumes grew 10.6% to 6.7 million 20-foot-equivalent (TEU) containers. Gemini brings synergies from a network of 340 ships on seven trade corridors, which will begin to pay off from the second half of 2025, Habben Jansen said. But inflation, higher prices of shipyards, carbon permits and cleaner fuels could not be argued away. ($1 = 0.8549 euros) https://www.reuters.com/business/autos-transportation/hapag-lloyd-lowers-2025-earnings-forecast-seeks-savings-2025-08-14/
2025-08-14 11:08
At least 17 feared dead, more missing after heavy, sudden rain Disaster follows recent flood and mudslide in Uttarakhand Community kitchens for pilgrims washed away by flood waters SRINAGAR, India, Aug 14 (Reuters) - At least 17 people were feared dead and more missing following sudden, heavy rain in Indian Kashmir, an official said on Thursday. The disaster occurred in Chasoti town of Kishtwar district, a stopover point on a popular pilgrimage route. It comes a little over a week after a heavy flood and mudslide engulfed an entire village in the Himalayan state of Uttarakhand. Sign up here. The flood washed away a community kitchen and a security post set up in the village, said the official, who declined to be named because he was not authorised to speak to the media about the incident. "A large number of pilgrims had gathered for lunch and they were washed away. Scores of people as of now are missing," the official said. "The news is grim and accurate, verified information from the area hit by the cloudburst is slow in arriving," Omar Abdullah, the chief minister of India's federal territory of Jammu and Kashmir, said in a post on X. Television footage showed pilgrims crying in fear as water flooded the village. The disaster occurred at 11.30 am local time, Ramesh Kumar, the divisional commissioner of Kishtwar district, told news agency ANI, adding that local police and disaster response officials had reached the scene. "Army, air force teams have also been activated. Search and rescue operations are underway," Kumar said. A cloudburst, according to the Indian Meteorological Department, is a sudden, intense downpour of over 100 mm (4 inches) of rain in just one hour that can trigger sudden floods, landslides, and devastation, especially in mountainous regions during the monsoon. The local weather office in Srinagar predicted intense showers for several regions in Kashmir on Thursday, including Kishtwar, asking residents to stay away from loose structures, electric poles and old trees as there was a possibility of mudslides and flash floods. https://www.reuters.com/world/india/sudden-rainstorm-indian-kashmir-leaves-17-dead-scores-missing-2025-08-14/
2025-08-14 11:08
Treasury to revise clean energy tax credit rules Developers may face stricter cost and construction requirements Some firms accelerate projects amid regulatory uncertainty Aug 14 (Reuters) - The Trump administration is expected as soon as Monday to take another step toward curbing the growth of renewable energy in the United States by making it harder for companies to claim federal tax subsidies for wind and solar energy. The Treasury Department next week will reach a 45-day deadline, set by U.S. President Donald Trump in July, to revise rules governing who can qualify for clean energy tax credits that the Republicans' One Big Beautiful Bill Act is phasing out years earlier than planned. Sign up here. The rule under scrutiny centers around what it means for a project to be considered under construction, a definition that is critical to companies building facilities that require years of planning. The OBBBA requires projects to begin construction by July of next year or enter service by the end of 2027 to qualify for a 30% tax credit and bonuses that can push the subsidy even higher. Under previous law, the credits were available through 2032. In an executive order last month, three days after signing the OBBBA into law, Trump directed Treasury to restrict the use of safe harbors, rules that have allowed project owners for years to claim tax credits so long as they incur 5% of their costs or make meaningful physical progress before the credit expires. Washington policy advisory firm Capstone said it could see Treasury requiring developers to incur a higher percentage of costs, such as 10% or 15%. Under the physical work requirement, the agency could exclude off-site construction or require more contact with the government and proof of continuous work. The Treasury Department did not respond to a request for comment. Tightening the requirements would be the latest in a string of steps the administration has taken to stall development of wind and solar energy, which Trump says are unreliable, expensive, and dependent on Chinese supply chains. According to advisory firm Clean Energy Associates, the United States could lose about 60 gigawatts of planned solar capacity through 2030 if stricter "beginning of construction" rules are implemented. That would be enough electricity to power about 10 million homes. Project developers and financiers have leaned on the tax credit rules to guide their investment and construction decisions for the last decade. "The executive order and the uncertainty has actually had a more negative impact than the legislation itself," said Reagan Farr, CEO of solar project developer Silicon Ranch. In the six weeks since the executive order, some companies have stalled progress, while others have ramped up activity to start as many projects as possible, said Javad Asghari, a partner with the law firm Simpson Thacher who focuses on energy and infrastructure projects. Aaron Halimi, founder and president of San Francisco-based solar project developer Renewable Properties, described measures his company has taken to protect its access to subsidies he fears could be at risk. "We’ve taken many steps to safe harbor a large portion of our pipeline of projects we plan to deliver between now and end of 2029," Halimi said, including buying transformers and American-made panels, and increasing lines of credit for purchasing equipment. https://www.reuters.com/sustainability/climate-energy/trump-administration-unveil-tougher-solar-wind-subsidy-rules-2025-08-14/
