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Hotspots

Michigan’s Data Center Bans Are Getting Longer

Plus more of the week’s top fights in renewable energy.

The United States.
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1. Kent County, Michigan — Yet another Michigan municipality has banned data centers — for the second time in just a few months.

  • Solon Township, a rural community north of Grand Rapids, passed a six-month moratorium on Monday after residents learned that a consulting agency that works with data center developers was scouting sites in the area. The decision extended a previous 90-day ban.
  • Solon is at least the tenth township in Michigan to enact a moratorium on data center development in the past three months. The state has seen a surge in development since Governor Gretchen Whitmer signed a law exempting data centers from sales and use taxes last April, and a number of projects — such as the 1,400-megawatt, $7 billion behemoth planned by Oracle and OpenAI in Washtenaw County — have become local political flashpoints.
  • Some communities have passed moratoria on data center development even without receiving any interest from developers. In Romeo, for instance, residents urged the village’s board of trustees to pass a moratorium after a project was proposed for neighboring Washington Township. The board assented and passed a one-year moratorium in late January.

2. Pima County, Arizona — Opposition groups submitted twice the required number of signatures in a petition to put a rezoning proposal for a $3.6 billion data center project on the ballot in November.

  • No Desert Data Center Coalition and Arizonans for Responsible Development, two advocacy groups that have been fighting the proposed Marana, Arizona project, said this week that they had collected 2,800 signatures on a petition to allow voters to decide on the project’s rezoning. The Marana Town Council had voted unanimously in January to approve the rezoning of the project site.
  • The Marana project is often conflated with Project Blue, a nearby data center proposed by the same developer. Both have faced concerns over energy and water consumption.

3. Columbus, Ohio — A bill proposed in the Ohio Senate could severely restrict renewables throughout the state.

  • Senate Bill 294 would require new electricity generation plants to “employ affordable, reliable, and clean energy sources” — restrictions that, on the face of it, could appear friendly to renewables. But the bill’s definition of “reliable” includes a minimum capacity factor of 50% and the requirement that generation is “readily available,” restrictions that effectively exclude low-capacity, weather- and sunlight-dependent wind and solar. What’s more, the bill names natural gas and nuclear as “clean” sources of energy but does not explicitly refer to wind or solar as clean.
  • The bill follows a template provided by the American Legislative Exchange Council, which along with the Heartland Institute has advocated for its passage in Ohio. The template has already been applied in Louisiana, and a proposed bill in New Hampshire would establish similar reliability requirements.

4. Converse and Niobrara Counties, Wyoming — The Wyoming State Board of Land Commissioners last week rescinded the leases for two wind projects in Wyoming after a district court judge ruled against their approval in December.

  • It’s the latest in a saga for the pair, the Pronghorn and Sidewinder Wind Projects, which this newsletter began covering last June after Wyoming’s governor and secretary of state staked opposing positions on the projects. Ranchers near the project sites expressed vociferous opposition, and a lawsuit filed by a rancher in July alleged that the Wyoming Board of Land Commissioners had violated its own rules when it approved the projects. The December court ruling in favor of that lawsuit opened the way for the rescission.
  • The Pronghorn project was initially planned to include a hydrogen extraction plant, but developers this month announced that the plan would be reduced to 30% of its original size and the hydrogen component would be canceled.
  • Although the state appealed the court ruling later in December, the board requested the state withdraw that appeal following its vote last week to rescind the leases. It’s unclear what comes next for the projects, but more litigation seems likely to follow.
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Q&A

How Building Transmission Could Lower Electricity Costs

Talking with National Grid’s Matthew Satterwhite about his new report with S&P Global.

The Q&A subject.
Heatmap Illustration

This week’s conversation is with Matthew Satterwhite, head of U.S. policy for National Grid. This week National Grid released a report in collaboration with S&P Global I found noteworthy amidst the data center backlash, asserting that building new transmission lines can potentially reduce consumer costs. I reached out asking if we could chat about how this argument leans into the fight over hyperscale infrastructure. I found our conversation illuminating and educational.

The following Q&A was lightly edited for clarity.

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Hotspots

The Solar Farm-to-Data Center Switcheroo Hits a Snag

Plus more of the week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

1. Clark County, Nevada – The first data center approved on federal lands has hit a legal brick wall.

  • On Monday, the Townsite 2 solar farm-to-data center environmental review swap I’ve previously covered received a stay from the Interior Department’s board of appeals. David Gunter, a Biden appointee, ruled that the Center for Biological Diversity’s appeal of the permit flip was likely to succeed on the merits because a solar farm … is not a data center. Seems logical!
  • As I covered at the time, the Bureau of Land Management approved the environmental review swap claiming that a solar farm and a data center have essentially the same characteristics. It was a bold claim. Both the agency and Townsite said the characteristics would have substantially the same environmental impacts. Gunter shrugged off the claim idea, however, stating that statute requires projects to be both substantially similar and have equally similar impacts under the National Environmental Policy Act.
  • Crucially, Gunter also noted that the federal agency had never done an environmental review of any data centers under NEPA, so there’s not even a proper frame of reference. “BLM has not studied the Townsite data center project, or indeed any other data center project, in any environmental document,” he wrote.

2. Jackson County, Missouri – We have yet another high-profile case of a city councilor losing their job over voting for a data center, and this one’s a doozy.

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Spotlight

These 5 States Are Primed for a Data Center Pause

Where temporary moratoria could happen next.

A data center protest.
Heatmap Illustration/Getty Images

Brace yourself for more statewide data center moratoria.

So far there are only two full state-wide blocks on data center permits, in New York and Texas. At least fifteen states have moratorium legislation in the pipeline, but few if any of those bills stand a chance of becoming law in the short term. Here are five states, however, where a broad development pause may gain momentum in the next year or two — and all of them are crucial to watch this November.

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