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Hotspots

Michigan’s Data Center Bans Are Getting Longer

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

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The United States.
Heatmap Illustration/Getty Images

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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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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