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Hotspots

The Most Important Data Center Vote You Haven’t Heard About

Plus more on this week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. Washtenaw County, Michigan — The Mitten State made itself the center of the data center backlash this week, as multiple AI skeptics won key Democratic congressional primaries. Yet the most significant election result wasn’t a primary vote, but rather a quiet referendum in a small town outside Ann Arbor.

  • On Tuesday, the town of Augusta voted by a nearly 9-1 margin to overturn a land use ordinance enacted by the township government the previous year allowing a data center on agricultural land. This means developer Thor Equities will either have to find a way around clear local rejection or abandon Augusta for its proposed data center.
  • Augusta sits on the border of Michigan’s 7th congressional district, where Sunrise Movement cofounder Will Lawrence pulled off a surprise upset against a moderate establishment-backed candidate. Lawrence’s victorious primary campaign was rooted almost entirely in advertising against data center development and tying his opposition to supporting the industry.
  • I believe the Augusta result proves the case made by Lawrence’s candidacy — voters will resoundingly back ways to fight data centers. A Lawrence campaign memo published by Politico after the primary makes the argument he will defeat incumbent Republican Tom Barrett almost entirely on this issue, too, calling it “the hyperscale elephant in the room.” The memo also claims there are “data center voters” who have “not traditionally been available to Democrats [but] have been highly motivated by hyperscale development in mid-Michigan.”
  • “Will’s strong stance on this issue and his consistency in showing up and standing alongside residents in data center fights expands his potential voter base in the general,” the memo states.

2. Travis County, Texas — I’ve been getting a lot of texts from sources about Texas Governor Greg Abbott issuing a stop to data center permitting. Let’s get into what really is happening here.

  • On Tuesday, as folks like me were awaiting election results, we were met with a shocker: Abbott issued a directive that reads a lot like a data center moratorium, instructing the Public Utility Commission of Texas and the Electric Reliability Council of Texas to do a comprehensive “audit” of data centers and the electricity grid’s capacity to handle them. Abbott also asked the commission and regional transmission organization to craft energy and water requirements for data centers, adding that the audit must be completed “before any data center project moves forward.” After that, any project that “fails to comply with the requirements” will be “denied connection to the Texas grid.”
  • QTS, a large developer, announced it would comply with and support Abbott’s proposed standards for data center development. The governor celebrated the industry affirmation, and his office said it was part of a trend of welcoming his approach that also includes Amazon and Google. “QTS is setting an example of responsible data center development by embracing my standards, and any company that wants to do business in Texas should expect to do the same.”
  • On its face, this looked like a win for data center critics, and was reported by national media that way. But it’s clear the directive did not go far enough to please those holding the governor’s feet to the fire on the issue, as both former Texas Agriculture Commissioner Sid Miller and GOP-focused data center watchdog advocates Human First called on the governor to also call a special legislative session to put new data center laws on the books.
  • Humans First also sent Abbott a letter from numerous GOP officials in rural Texas counties calling for action ASAP. “We cannot afford to wait until the regular 2027 legislative session,” the letter reads. “Every month, additional land is acquired, permits are approved, infrastructure is financed, and communities lose opportunities to shape decisions that will affect them for decades. By the time lawmakers reconvene, many of today’s most consequential decisions will already be made.”
  • One of the major issues here is unincorporated land rights. A recent Texas Tribune analysis found that roughly half of all data centers under development in the state are sited in unincorporated areas, where local and county governments are limited in their legal authority to halt projects under Texas state law. Abbott previously called for a ban on data center development in these places but that would require a new law and it’s clear some GOP politicos at minimum believe there’s an immediate political risk ahead of the midterms. At maximum? The potential for a land rush before lawmakers return for a normal session next year.

3. Jefferson County, Missouri — Data center opposition can win a Republican political primary, too, as demonstrated this week in this rural pocket of the Show-Me State.

  • On Tuesday, Ann Moloney narrowly won the primary to be the GOP nominee for the 114th Missouri state house district. The district is primarily Jefferson County, home to the city of Festus, where residents made national headlines by ousting almost all city leaders over support for data centers. Roughly half the county is expansive farmland and prairie. It essentially screams “don’t develop here”: the county has a 99 clean energy opposition risk score and a 92 data center development risk score in Heatmap Pro.
  • Moloney previously sought a state house seat unsuccessfully on a campaign built around pro-life messaging. She initiated her race after the person holding it passed away last year and claims data center opposition became her new primary focus, saying it is the “number one” issue she hears from would-be constituents.
  • Still, data center angst can’t win them all. Voters this week also rejected a ballot initiative to cut the state income tax that supporters tried to pitch as repealing data center subsidies. It was a questionable claim to make in campaign ads in the first place and wound up having little sway with voters.

4. Santa Clara County, California — We conclude this week’s Hotspots with a warning about the dire political straits of battery storage technology.

  • AES canceled its Jewelflower battery storage project in San Jose this week after a mountain of upset over its location in Coyote Valley on farmland acreage conservationists called to preserve from industrial development. The Santa Clara Valley Open Space Authority, a special land use district created by the state that oversees the project proposal area, unanimously opposed Jewelflower in May.
  • “After careful consideration, AES has decided not to move forward with the proposed Jewelflower battery energy storage project,” the company said in a statement posted to its website. “As with every project in early development, we evaluated a range of factors, including project economics, infrastructure requirements, market conditions, community considerations, and long-term investment priorities.”
  • This comes after multiple high profile BESS rejections this year in California and other large states with considerable energy needs and strained grids like Texas. It’s becoming clear that anxiety around fire safety is overwhelming any desire to improve local resilience, even amidst public concerns about the rising data center power demand.
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Spotlight

The New Push for Underwater Data Centers

Exploratory projects are making a splash in Maine and Alaska.

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Wires and water.
Heatmap Illustration/Getty Images

A legal brawl is brewing over what could be the nation’s first underwater data centers.

Two subsidiaries of a new LLC named DeepGreen have applied for “preliminary” permits from the Federal Energy Regulatory Commission that would give four years of permission for studies and analysis towards constructing underwater data centers off remote coastlines in Maine and Alaska. The data centers as proposed would be powered entirely by tidal energy, as in, the power of waves themselves – a technological innovation from hydropower still being piloted around the world. Project descriptions submitted to FERC lay out what these data centers would look like in broad strokes: hundreds of hydrokinetic turbines, dozens of underwater “data center pods,” and miles of subsea cable. The permits would not authorize construction, which would need its own lengthy review process. But these early green lights would tee both areas up for years of potential conflict over hypotheticals that feel real to those on the ground.

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Hotspots

The Solar Opponents Begging Trump to Intervene in Michigan

And more of the week’s biggest fights around project development

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The United States.
Heatmap Illustration/Getty Images

1. Ottawa County, Michigan – A congressional district House Democrats are targeting for control of the Lower Chamber is now a battleground over solar development on farmland, and I’m waiting to see if President Trump gets involved.

  • On Sept. 24, the Michigan township of Zeeland wrote a letter to the president – and reportedly Agriculture Secretary Brooke Rollins – requesting the federal government intervene in the development of RWE’s utility-scale Silver Maple Solar project. The letter to Trump which is public requests the president visit Zeeland and the project site to “provide an opportunity to meet directly with local farmers, business owners, elected officials, and residents who are living with the consequences of the poor policies you are fighting against.”
  • Shortly thereafter, Zeeland Township supervisor Kerri Bosma, who authored the letter, met with Rep. Bill Huizenga and presented him with a copy of the letter. “Thank you for reaching out Kerri and keep up the fight against this Lansing big government takeover!” Huizenga said on Facebook. Huizenga’s office did not respond to a request for comment on how they would support this request further.
  • This is remarkable because local officials are beckoning for Trump to arrive at a time when he’s historically unpopular and Huizenga’s congressional district is one being targeted by the Democratic Congressional Campaign Committee in this year’s midterm elections as a priority. Maybe this is about ginning up partisan red meat, as Huizenga’s opponent, State Sen. Sean McCann, has been publicly supportive of more solar development in agricultural communities.
  • Locals appear most irate with the state permitting primacy law which allows the state regulator, Michigan Public Service Commission, to supersede local opposition toward renewable energy projects. So far, the legality of that power is withstanding court challenges, and it’s unclear to me how the federal government could in any way stall this large solar farm aside from helping out in that legal effort on behalf of localities.
  • Clearly, RWE is confident they can go ahead – they just resubmitted their application to build the project with the MPSC, citing the primacy law’s survival in the courts.

2. Texas – The Lone Star State sure is action-packed right now, huh? Let’s break down a few of the most important fights.

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Q&A

Why the Senate Permitting Bill Isn’t a ‘Grand Bargain’

A conversation with Josh Freed of Third Way

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Josh Freed.
Heatmap Illustration

This week’s conversation is about the big energy policy story of the week – month? year? – which is the new bipartisan permitting deal in the U.S. Senate. As my colleagues and I were feverishly working on our mega-explainer about the bill, I rang up Josh Freed, founder of Third Way’s energy and climate program, who graciously picked up the phone despite traveling in London. Freed, a fellow energy wonk-slash-musician, was gracious to jam out with me on all the things I felt you needed to know about this bill – including whether there really is only one shot to get what he believes would be landmark legislation into law.

The following chat was lightly abridged for clarity. Let’s dive in.

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