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8  THE NEXT INTERNET  101

            including its well-funded research arm the Defense Advanced Research
            Products Agency (DARPA), as well as to the NSA and the CIA, helps to
            explain why there are no challengers to US hegemony over the Next
            Internet coming from Europe, whose telecommunications companies once
            led the world.
              China provides the only serious competition. There, government has
            invested heavily in Next Internet technologies going as far as to integrate
            them into its five-year plans and build entire cloud cities. This has benefited
            leading companies like Alibaba, Baidu, Huawei, and Tencent, among
            others. Signalling that it intends to challenge America’s lead, Alibaba has
            set up shop in Silicon Valley and, like other Chinese firms, is building on
            the enormous domestic market to extend its reach internationally (Tse and
            Hendrichs 2016). A look at the remaining policy issues reveals why the
            concentration of corporate power is such a significant problem and why it is
            essential that societies begin to consider the need for public intervention to
            regulate and control the Next Internet as an information utility.
              Because the digital world is made up of invisible electrons zipping
            through the air, there is a tendency to view it as immaterial. Nothing could
            be further from the truth and the sooner this is recognized, the more likely
            the environmental problems associated with the Next Internet will be
            addressed. Cloud data centres are very material structures and, as they
            come to fill the world, there are numerous emerging environmental policy
            issues. It is expected that by 2017 data centres will consume 12% of the
            global electricity grid (Sullivan 2015). Moreover, customer demand for
            24/7 services requires several layers of backup power, including lead acid
            batteries and diesel generators that have been found to be carcinogenic.
            Furthermore, many data centres require large, continuous supplies of water
            for their cooling systems and this raises serious policy issues in places like
            the US West, where years of drought have taken their toll. So far, data
            centre operators have used their economic power and the allure of pro-
            mised jobs to successfully pressure local governments to provide property
            tax breaks, cut-rate power deals, and relief from pollution regulations.
              Some companies have responded to opposition from environmental
            groups, especially Greenpeace, by incorporating solar and other sustainable
            energy sources into their data centre power supplies. But as data require-
            ments grow, systematic regulation is required, including a broad review of
            discount power deals, the use of massively polluting backup systems, and
            the diversion of water resources to cool servers. Notwithstanding any
            progress in this area, the primary source of power consumption in the Next
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