How Google is changing small town America

An injection of renewable power.

In director Peter Bogdanovich’s elegiac 1971 movie The Last Picture Show, the aging local movie theatre serves as a metaphor for the cultural and economic decline of a fly-blown north Texas town during the 1950s.

On the big screen at the Royal, Westerns like Red River mythologise the Lone Star state’s outlaw history, but the inhabitants of Anarene prefer the anodyne game shows playing on their new-fangled TV sets, a taste of the dull conformity that will come to define the Eisenhower years. Fast forward six decades, and technology is once again transforming America’s rural heartland.

Nestled in the shadow of the iconic Blue Ridge mountains is the unassuming backwater of Lenoir, North Carolina. Once a flourishing factory town serving the US furniture industry, the cacophony of noise emanating from Lenoir’s carpentry mills has long since been replaced by the barely audible hum generated by row after row of servers housed inside Google’s massive $1.2bn data centre.

Constructed in 2007, and home to 110 employees and contractors, the 215-acre facility – one of six such server farms dotted around the US – houses computer systems that support Google Search, Gmail, Google+ and YouTube.

Now, the next chapter in Lenoir’s transformation into a 21st-century internet hub is being written as Google invests a further $600m to expand the data centre’s capacity.

More important, however, is the global IT giant’s collaboration with Duke Energy, the largest electricity utility provider in the US, on a new project that gives corporates the option of offsetting some or all of their energy consumption with renewable power purchased directly from utilities in North Carolina.

This more scalable approach will take the form of "renewable energy tariffs" that may one day be made available to all Duke Energy customers in the US.

So, why haven’t electric utilities offered corporate serious alternatives to "dirty" energy such as coal, nuclear and gas before now?

"In many parts of the US, the electric utilities run a monopoly service and the rates they charge are regulated by a state utility commission," says Michael Terrell, Google’s senior policy counsel, energy and sustainability. "The commissions have never asked for them to create this kind of service – until now, people have tended to just be interested in reliable power at the lowest cost possible."

There are signs that this is changing. Apple powers its data centre in Maiden, about 30 miles from Lenoir, with a 100-acre solar farm and has also built an on-site 10MW fuel cell installation that converts methane gas from landfills into stored electricity.

To attract Google to North Carolina in 2007, state officials controversially offered 30 years of state and local tax breaks potentially worth more than $260m. In light of this, and ongoing accusations of tax evasion, the internet giant has been quick to allay concerns that by offering new tariffs to big business, Duke Energy will be forced to shift costs to residential customers.

"We can’t offset our way out of climate change – eventually we need new sources of power,” says Terrell. "What we are doing with Duke is creating a new class of renewable energy service."

In doing so, Google is also transforming the town of Lenoir into a living monument to the accelerated pace of technological change that has characterised post-war American life and industry.

Photograph: Getty Images

Julian Turner works for NRIdigital, part of Progressive Media.

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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