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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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The movement against data centers is raising up a raison d'etre of the anti-renewables movement: protecting would-be farmland.
Farm owners and operators across the U.S. are winning national headlines almost every week for rejecting big dollar offers from data center developers. In Hanover County, Virginia, protestors are chanting “Grow Tomatoes, Not Data Centers.” In Pennsylvania and elsewhere, Republican legislators are mulling proposals to block the sale of so-called “prime farmland” for data center development. In Texas, the fight over data center development has engulfed the race for the state’s ag commissioner seat. In the Midwest, where agriculture reigns supreme, statewide races and congressional campaigns are slowly but surely being defined by the issue. Like in Nebraska where Austin Ahlman, an independent candidate running for Congress in Nebraska’s first district, told me he believes the data center backlash is reflective of a populist politics that broadly criticize elites and top-down control of the economy: “I think sometimes people misunderstand the anxieties of rural Americans when it comes to these data centers because a lot of their fears are about control long term.”
Unlike the farmland backlash around renewable energy development, the loudest critics are on the anti-monopolist left. On Wednesday, the prominent opposition group Food and Water Watch signaled farmland could soon be a watchword in the national data center debate – in a fashion analogous to what we’ve seen with renewable energy. The organization’s blog post entitled “The AI Data Center Boom Is Coming for Farmers” declared data centers verboten because of the threat they posed to “small and midsized family farmers.” Mitch Jones, deputy director of the campaign outfit, said he believes the threat to farmland is “a compelling reason to oppose data center development” but that his organization’s fight is primarily focused on protecting small business owners and an anti-monopoly sentiment.
“If data centers are coming into their areas, this puts even more pressure on them. It drives up the cost of their electricity, just as it does anyone else. It competes with them for water for crops, and it affects the value of their land in a perverse way,” Jones told me.
None of this should be surprising. An agricultural workforce has always been a good barometer for figuring out if a community will accept new infrastructure of any kind. We’ve seen as much time and time again with renewable energy, carbon capture, fossil energy and mining, just to name a few industries.
This same rule is true with data centers. In April, county commissioners in Kosciusko County, Indiana, unanimously rejected a Prologis data center; nearly 90% of acreage in Kosciusko County is being actively farmed, according to the Heatmap Pro database. Linn County, Iowa, in February enacted a rule severely restricting data center development in unincorporated areas; almost three-fourths of the land is used by the ag sector. A potential Amazon facility is causing heartburn in Clinton County, Ohio; nearly all land in the county is used for farming and utility-scale solar development has a recent history of conflict with landowners.
To be candid, I’m struck by the similarity in the backlash over siting data centers on farmland – a resemblance so close that some counties are starting to restrict renewable energy and data center development on farmland at the same time. This week, Eau Claire County, Wisconsin created a new “farmland preservation plan” discouraging utility-scale solar energy and data centers on any potential farmland. (More than 40% of land in this county is currently being used for farmland, according to Heatmap Pro.)
Jones at Food and Water Watch said his organization taking on the “protect farmland” mantle had nothing to do with the success this argument has had against renewable energy. “That thought never entered my head,” he told me, adding that if communities respond to the data center backlash by taking steps that short-circuit solar and wind too, that’s “a coincidence.”
I kept pressing. What if the pivot to farmland protection leads to more communities restricting renewable energy along with the data centers? “If you’re looking for a reason to oppose solar and wind, you can come up with that without having to attach data centers to it,” Jones said. “We’ve seen rural communities oppose solar and wind before data centers blew up across the country. It’s nothing new.”
And more of the week’s top news around project fights.
1. Virginia Beach, Virginia – The right-wing interest group lawsuit against Dominion Energy’s Coastal Virginia offshore wind is now dead, concluding one of the wackier tales of the Trump 2.0 energy era.
2. Box Elder County, Utah – Call it the Box Elder County massacre.
3. Davidson County, Tennessee – We have the latest updates in the Nashville Zoo data center drama and they’re a doozy and a half.
4. Clark County, Ohio – Yet another utility-scale solar farm is in the Ohio state permitting graveyard.
A conversation with Hanson Wood of RWE
This week’s conversation is with Hanson Wood, chief development officer for solar developer RWE. Wood’s perspective felt crucial at a moment when the data center boom is leading to so much deal volume – even after the repeal of the Inflation Reduction Act. So I reached out to his team to see if we could talk about how he’s evaluating all things Fight-related, including the impacts of the data center backlash on solar itself. The following conversation was lightly edited for clarity.
How is solar finding opportunities in the data center development space? I know there’s conversations about speed-to-power and some deal volume, but help us get a better sense of the level of capacity being sought versus fossil or other forms of energy.
Great question. To contextualize, I think it just makes sense to talk about energy demand overall. Solar is filling the base of where the majority of load growth and generation is coming from and going to be served.
Over the last decade, the cost of solar has gone down dramatically. It’s become a very modular technology being deployed in a variety of locations. It can be deployed very quickly at low cost. It can ramp to meet short-term demand needs. And within the space of just energy demand, across utilities and large industrial data center companies, the reality is no single technology is going to be able to serve overall demand. Everything from solar to onshore wind and geothermal and other forms of flexible generation are needed.
What this speaks to is how our grid is pretty finite. We have to be able to mix and match a variety of products to be able to meet an ever-growing reliability need. To make it simple, I think solar’s going to serve the largest base of growing demand because it's cheap and it's available. But it’s not going to be the only technology. We need to be able to serve this load growth reliably. And we know this is going to require a diversity of technologies.
From a social license perspective, does solar power for a data center make it more acceptable for a community? Less acceptable? More friendly?
One thing I want to be clear about: I don’t develop data centers. So I’m looking at it through the same view many people in the industry and the public see it.
I think there’s manifold reasons why people have concerns about data centers, overall. I can’t speak for all of them. But what solar does address is, we don’t want to see large price spikes in the short term and solar can really help in that regard. It can provide near-term generation immediately in a lot of instances at one of the lowest costs in the market.
Whether the broader public makes that connection, it’s probably too early to see. There’s probably a lot of anxiety that has to be addressed by that [data center] community.
When it comes to the state of solar development, have the feelings around data center infrastructure we’ve seen in various places impacted solar projects?
Solar is more often in what we consider rural areas where there’s more of a conservative viewpoint generally.
Where I think we stand in the solar industry is that in the 2010s we were looked at as a one-off, and now what we see as the challenge is that as solar scales, communities are looking at the scale and potential of what solar will be bringing. A lot of the conversations we have with [them] are, is this changing the local character? How is this impacting our way of life?
And the way we try to approach that is to highlight a lot of the public benefits. Renewables are generating significant jobs, locally as well as through funding local services. Farmers setting aside land for renewables are also funding their farms and way of life. I’ve heard testimonials from farmers who’ve said they wouldn’t be able to continue on without the revenue from solar or BESS projects.
The broader community is concerned solar is displacing rural farming, but what we hear from rural landowners is that these projects are allowing them to keep their farms.
Most people when they start looking at renewables, they don’t make that connection. They’re primed to ask, what’s the downside here? But it’s nothing in terms of physical land while the economic value it brings is long-term. It’s 30 years — at a time when the American public is seeing lots of headwinds.
I know at a broader level, you’re addressing the conflicts in solar energy. Do you think the solar industry offers any lessons for the folks now trying to get data centers built?
Anyone who is building large infrastructure projects can’t ignore early community engagement. One of the things people should be thinking about as they’re developing projects is these things are going to be here 20, 30 years, right? When we develop those projects we are trying to build relationships in a sustainable fashion.
We really take into consideration the concerns we hear. Again, people are primed to see the downside in any development, and without that early engagement – genuinely – you risk whether other people come along and hear the benefits or feel like their voice mattered in the process of development.