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The outdoorsy retailer’s new facility in Lebanon, Tennessee features skylights, solar panels, and some quirky design choices.

Almost by definition, warehouses are boring — spaces of pure industry and function with no aesthetic value.
Boring, though, is not very efficient. The Department of Energy keeps national statistics on warehouses (instead of the more obvious Department of Commerce), largely because it’s the purview of the U.S. Energy Information Administration to keep track of the energy consumption of buildings, and warehouses consume a lot. The transportation sector makes up about 8% of global greenhouse gas emissions, a number that jumps to 11% when you factor in warehousing-related activities. There is an estimated 4.7 billion square feet of warehouse space in the country already — enough to cover Maine’s Acadia National Park more than twice over — and it’s growing rapidly.
Almost all the $1.1 trillion of U.S. e-commerce sales filters through warehouses at some point in the journey from clicking “purchase” on your screen to a package arriving at your front door. The trucks coming and going with goods from distribution centers spew nitrogen dioxide, which is linked to asthma and is 20% more prevalent on average in the air near industrial parks. Concrete monstrosities that they are, warehouses can even mess with local stormwater drainage due to the acres of ground cover, roads, and loading docks they require. And about a third of the ones in the United States are more than half a century old, meaning they’re not exactly at the state of the art of energy efficiency.
Until very recently, this was mostly an accepted fact. Customers never see the inside of warehouses, meaning there isn’t a lot of external pressure for companies to make them nicer. (Being out of sight and out of mind has also historically allowed them to become sites of rampant exploitation and safety violations.) As Andrew Dempsey, director of climate at outdoor recreation retailer REI Co-op, put it to me, “Folks are not thinking about their warehouses and distribution centers as opportunities for leadership.”
Late last year, REI opened the 10th warehouse in the country to earn a LEED v4 Platinum certification, a designation the nonprofit U.S. Green Building Council reserves for projects that go above and beyond sustainability considerations. (Levi Strauss & Co. has one in Nevada, and the National Institute of Health has another in North Carolina, among others.) Located in Lebanon, Tennessee, near important transportation corridors for the business, the new REI warehouse still looks, at least from the outside, a little like the boring designs of the past: At some 400,000 square feet, it’s certainly blocky and large.
“With most of these types of projects, there is always going to be a tension between some of the impact goals you’re looking to achieve and some of the business objectives,” Dempsey added — that is to say, a warehouse still needs to house wares. But, he added, “Under certain constraints, you can get very creative.”
According to the DOE, lighting is one of the biggest energy-sucks in a warehouse. For the Lebanon project, REI partnered with Al. Neyer, a commercial real estate developer with experience designing and constructing LEED-certified buildings, and zeroed in on “design decisions that aren’t overly complex or necessarily bleeding edge,” Dempsey explained. For example, to light the space, the team simply installed 90 skylights, which not only allows in more sun (and thus, reduces the need for lightbulbs), it also helps workers keep an “understanding of the rhythms of the day.” Sensors that turn off lights and conveyor belts when not in use allow the warehouse to run on 30% less energy than code requires.
Solar panels are another common way for warehouses to go greener, and the Lebanon facility has them, too. However, REI also wanted to bring more zero-emission energy to the surrounding community, so it teamed up with Clearloop, a local start-up, to build a supplementary solar project nearby. In addition to keeping the warehouse at its 100% renewable energy goal, the solar facility will also help power several hundred surrounding homes.
Perhaps the biggest challenge REI took on is making the construction process — another traditionally high-emissions part of a building’s lifecycle — zero-waste, which occasionally led to some delightfully woo-woo material decisions. Trees cut down in preparation for construction at the site were recycled for interior design accents like stair barristers. An old barn on the property was likewise deconstructed and its wood repurposed for the warehouse’s atrium space. (The lobby and lounge have the same Restoration Hardware-chic style as many REI retail spaces.)
Many other materials came from “right outside the windows of the building,” Dempsey told me, “which I think is really important to give the folks working there a connection to the history of that land.” Even interior wayfinding elements were made more whimsical: Though there is no way to avoid pouring vast emissions-intensive concrete floors in a warehouse, a polished path on their surface mimics the nearby Cumberland River, and is meant to further blend the indoors with the outdoors.
Stefanie Young, the vice president of technical solutions at the U.S. Green Building Council, who has worked on a number of warehouse projects, told me environmental sustainability is not necessarily the only motivator for companies pursuing LEED certificates. “It’s also about the health and wellness for the occupants: ventilation, access to amenities, the ability to travel to and from the site,” she said, adding, “It might be minimal, but every person that comes into that building is important.”
And while the REI facility is still an oddball in the warehouse space, the advantages of a climate-friendly design are attracting interest from more and more developers. The attention is not necessarily all altruistic: “Clearly, the more efficient the facility is, the less their utility bills will be,” Young pointed out. Owners and developers are also looking for places to meet their ESG or carbon reduction goals, and warehouse upgrades help boost those bona fides. (REI, for example, aims to halve its greenhouse gas emissions by 2030.)
Warehouses will probably never actually be sexy. But it also doesn’t take groundbreaking innovations to make them a little more pleasant — at the end of the day, we’re still just talking about adding some skylights, drought-resistant landscaping, and a few electric forklifts to make them better for both the planet and workers. But these little things matter: “Customers won’t come into this space, but several hundred of our employees will,” Dempsey said. “And that alone merits us to create the best space possible.”
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Climate tech investors talk investing in moonshots at SF Climate Week.
Three climate investors walked onto a boat.
That’s not the start of a joke — it’s a description of a panel at Heatmap House, a day of conversations and roundtables with leading policymakers, executives, and investors at San Francisco Climate Week (at the Klamath, a venue made out of an old ship).
Heatmap’s Katie Brigham moderated the roundtable conversation with Prelude Ventures Managing Director Gabriel Kra, Azolla Ventures co-founder Matthew Nordan, and Toba Capital Partner Susan Su. Many of their investments are in moonshot climate technologies that other financial players might avoid.
“Things that look contrarian is kind of what we do,” said Kra. “Occasionally, there’s an idea that looks bad that’s actually a good idea.”
Prelude Ventures funds early-stage climate companies that are “weird, or non-consensus, or counter cyclical, or just ahead of the curve,” according to Kra.
Nordan, for instance, said he backs cultivated meat despite some doubts that the category will achieve widespread popularity.
“I’m presently leading an investment in a company called Pythag Technologies,” said Nordan, talking about the generative AI company focused on lab-grown meat. “It’s actually a really interesting time to invest counter-cyclically in a field like that.”
Like Nordan, Su described her firm as one that is open to unconventional choices.
“We are very weird in that we invest across lots of different categories and lots of different stages,” said Su.
One of her personal investments is in Xeno. “This company does electric motorbikes for commercial drivers, as well as swapping and energy networks in emerging markets, starting in East Africa,” she explained.
The panelists told Katie that opting for less popular investments can be rewarding because they may help fund a major breakthrough.
“We placed a couple of bets on fusion before this current melée occurred that sort of had everybody thinking that, you know, fusion was the next hot thing,” said Kra (who claimed that he intended the pun).
Nordan emphasized the gap that venture can fill, left by larger institutional investors who may shy away from high-risk technologies.
“If there are true breakthroughs out there that just may not be investable by mainstream finance at the earliest stages,” Nordan said, “not because people don’t think they’re really good ideas, but they may be crazy early-stage or kind of weird, or non-consensus, or counter-cyclical, or just ahead of the curve, it would be a real shame.”
Noise ordinances won’t necessarily stop a multi-resonant whine from permeating the area.
What did you do for Earth Day this year? I spent mine visiting a notoriously loud artificial intelligence campus in Virginia’s Data Center Alley. The experience brought home to me just how big a problem noise can be for the communities adjacent to these tech campuses – and how much further local officials have to go in learning how to deal with them.
The morning of April 22, I jumped into a Toyota Highlander and drove it out to the Vantage VA2 data center campus in Sterling, Virginia, smack dab in the middle of a large residential community. The sensation when I got out of the car was unignorable – imagine an all-encompassing, monotonous whoosh accompanied by a low rumble you can feel in your body. It sounds like a jet engine that never stops running or a household vacuum amplified to 11 running at all hours. It was rainy the day I visited and planes from nearby Dulles International Airport were soaring overhead, but neither sound could remotely eclipse the thudding, multi-resonant hum.
If you want to hear the sound for yourself, this video accurately sums it up.
After parking nearby I walked to one of the residential enclaves adjacent to VA2. One resident of a home across the street, who declined to give me her name, said she moved there before the project was completed. When asked how she felt about the noise, she told me, “It’s not as bad as it could be on the other side [of the data center], where all the equipment is.” (While the sound does get louder on the other side, I could clearly hear VA2 from her driveway.)
VA2’s noise has been causing problems for months, as documented by numerous social media posts, local news clips, and a feature published in Politico. It’s doubtful many of those living near the data center wanted it there. The project was built quite quickly – so quickly that Google Earth still shows undeveloped woodlands on the site. Per public filings, Vantage first proposed the facility in 2022 under the county’s fast-track commercial incentive program, an expedited permitting process for specific preferred industries. It was under construction as recently as October 2024, according to images captured by Google Street View.
Noise is one of the most common issues associated with data centers. At least a third of all conflicts over data centers are over noise complaints, and noise is the number one reason for opposition in cases where projects were ultimately canceled, according to Heatmap Pro data.
This issue goes back almost a decade. In 2019, residents of the Phoenix ex-urb Chandler, Arizona, became irate after a loud monotonous hmmmm began emanating from a CyrusOne data center. In that case, CyrusOne traced the noise back to chilling fans, and the company reduced the sound with muffling devices.
Chandler wound up adopting a new ordinance in 2023 requiring sound mitigation measures to prevent companies from exceeding certain ambient noise levels in the surrounding areas. That did nothing to improve the mood of the people who live there, however. Now Chandler, once known as a potential data center development hub, is now firmly in the anti- camp. The city council unanimously rejected a proposed $2.5 billion data center campus in December over noise concerns, despite an expensive lobbying push backed by former Arizona Senator Kyrsten Sinema.
As data centers spread across the U.S., noise is becoming an ever-more-common complaint. You can hear the familiar hum at a DataOne data center project in Vineland, New Jersey. DataOne told us they “understand concerns about ambient noise in the area” and are operating within the limits of local noise ordinances.
The hum is also in Dowegiac, Michigan, where people living nearby are calling their new Hyperscale Data facility a “noise trap,” with little explanation to date for the issue. Hyperscale Data did not respond to a request for comment.
And the hum is in Mount Pleasant, Wisconsin, where the sound from a new Microsoft data center campus rises above any din from rain. The hyperscaling giant is doing more to mitigate the issue than I’m used to seeing from data center developers, however.
On April 15, the company published an update on its own internal investigations into noise complaints. “Although the facility noise levels meet the requirements set by local ordinance, we take this feedback seriously and understand the impact this has had on our neighbors,” the update read. “We anticipated that our systems would need adjustments and create some noise as part of the datacenter startup, but we did not expect the tonal quality of the sound to travel as far as it has.”
To address the noise, Microsoft said it was “manually adjusting the cooling fans” to reduce noise, and that “we expect this change to address community concerns about the tonal humming.” On top of that, the company said it will install “additional sound reduction components” to “provide even further reductions in measured sound levels.” A Microsoft spokesperson told me in an email: “We’ve identified the source of the noise concerns and have implemented changes to significantly reduce sound from our facility.”
It isn’t cooling fans causing the noise at Vantage’s VA2 in Virginia, however. The sound, according to media reports, is coming from gas turbines powering the data center.
VA2 is one of the first in Virginia to function entirely off-grid, a design companies are adopting in order to avoid lengthy grid connection processes. Company spokesman Mark Freeman told me the facility is “fully compliant with all local noise ordinances, and this has been verified by third-party sound studies.”
“Additionally, in line with our commitment, we are actively working with third-party engineers to explore additional sound mitigation options,” Freeman continued. Freeman said “Our goal is to further reduce noise levels where possible and continue to foster a positive environment for everyone.”
Here’s the thing, though: I visited the Vantage campus after initially hearing from the company, and it was loud. Very loud.
I did not bring a decibel meter with me, so I cannot know whether they were operating within legal limits that day. What I do know is that noise ordinances struggle to properly capture sounds in multiple frequency ranges, making high and low frequencies challenging to regulate, according to the Environmental and Energy Study Institute, a bipartisan non-profit think tank. Officials representing Loudon County, where VA2 is located, have acknowledged that the local ordinance may need to change in order to address the most distressing frequencies from the data center campus.
“We can change the zoning ordinance and noise ordinance,” Loudon County supervisor Mike Turner told local TV station WUSA9 last week. “Noise can be mitigated. I just don’t believe that the noise problem cannot be solved.”
I wrote Freeman, the Vantage spokesman, to tell him I had visited the VA2 campus and found the noise to be “quite foul.” He replied soon after, telling me that Vantage is going “above and beyond what is required in order to address concerns from nearby residents.” The company is using “targeted enhancements to turbine-related equipment such as dampening equipment, enclosure inlets and enclosure exhausts.” These measures “represent meaningful progress and will help us better evaluate the effectiveness of the broader solutions under consideration.” Freeman also said the company is “actively assessing additional options” focused on “targeted frequency ranges.”
As we continue to track local regulation of data centers, I’m we’ll see many more cases like VA2, in which obtrusive sound prompts forms of regulation we may have never seen before.
Or, people will just hear these noises and say no to more data centers.
Plus more of the week’s biggest project development fights.
New Jersey – Crucial transmission for future offshore wind energy in New Jersey is scrapped for now.
Montgomery County, Alabama – A statewide solar farm ban is dead for now after being blocked by lawmakers who had already reduced its scope.
Doña Ana County, New Mexico – The Federal Energy Regulatory Commission wants to move faster on data center power infrastructure, but at least one energy project for a major hyperscaler is trapped in internal conflicts.
Hawkins County, Tennessee – A local free-market nonprofit is suing this county in federal court to argue data center bans are unconstitutional.
Mingo County, West Virginia – Speaking of federal data center cases, West Virginia regulators will now be forced to testify in the legal challenge against a large hyperscaler in the heart of coal country.
Will County, Illinois – This county reversed several solar project rejections, but it didn’t do so happily.
King County, Washington – Seattle might be the next major city to ban data centers.