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Hotspots

A Data Center Dies in Wisconsin

Plus more of the week’s biggest renewable energy fights.

The United States.
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Dane County, Wisconsin – The QTS data center project we’ve been tracking closely is now dead, after town staff in the host community of DeForest declared its plans “unfeasible.”

  • As I previously explained to Fight readers, this QTS project was a quintessential data center conflict. Not only was it situated in a blue county inside of a purple state, but a recent imbroglio over emails between the village mayor and QTS have made it a key example of how private conversations between tech companies and local governments can tarnish the odds of getting a data center permitted.
  • Late Tuesday, DeForest town staff issued a public statement disclosing they would recommend rejecting QTS’ petition to annex land for construction, without which the developer can’t build. A vote on whether to formally deny the petition was scheduled for February 3.
  • If the town rejects the project, the statement reads, DeForest staff expect QTS to “formally withdraw” its request for changes to land zoning plans and the annexation application. The town also cited vociferous opposition to the project, declaring: “The Village of DeForest appreciates the dedicated engagement of our community. Engagement is at the core of democracy. Reviewing public information, participating in public meetings, and discussing potential opportunities and impacts are all important civic activities.”
  • I was prepared to wait and see what happened at the public meeting before declaring this project dead in the water, but QTS itself has gone and done it : “Through our engagement, it has become clear that now is not the right time for our proposed project to move forward in DeForest.”

Marathon County, Wisconsin – Elsewhere in Wisconsin, this county just voted to lobby the state’s association of counties to fight for more local control over renewable energy development.

  • The county board of commissioners voted this week to approve a resolution that directly repudiates existing state permitting laws governing renewable energy. Wisconsin requires companies with a project larger than 100 megawatts to get certificates from the state Public Service Commission. But state law binds localities from instituting broad restrictions on renewables unless for public health and safety reasons.
  • Marathon County is a ruby-red area of the state with a 99 opposition score in the Heatmap Pro database, so not exactly somewhere I’d recommend a company try to build a utility-scale solar or wind farm.
  • It seems what tipped the county into lobbying for state-wide local control policy was the fight over Marathon Wind, an EDP Renewables wind farm that got into a legal battle with two towns in the county over rejecting the project.

Huntington County, Indiana – Meanwhile in Indiana, we have yet another loud-and-proud county banning data centers.

  • I can be the first to report that this county issued a one-year moratorium on new data centers, battery storage projects, and CO2-capture pipeline systems. I was first tipped off by a strange “press release” from a dubious-looking Facebook page, which unfortunately is par for the course when it comes to tracking these sorts of local siting fights.
  • Per the video records, the county will develop an ordinance after an undefined period of study. Commissioners pointed at neighboring counties in the state wrestling with data center projects as their justification. The commission adopted the moratorium unanimously.
  • As with Marathon County, Wisconsin, we shouldn’t necessarily be surprised that this rural county is acting proactively to halt new projects given its own 99 opposition risk score for renewables development. Even though its data center risk score is lower, the area is clearly quite sensitive to individual landowner complaints.

DeKalb County, Georgia – This populous Atlanta-adjacent county is also on the precipice of a data center moratorium, but is waiting for pending state legislation before making a move.

  • Per local reports, the county is hearing from a lot of opposition to two specific data centers abutting residential homes and public schools. This has the county commission leaning towards action. However this week, the county regulatory body voted to delay a decision because as one commissioner put it, there are “too many bills” in the state legislature to put new rules on these projects.
  • Indeed, there is a mammoth pile of legislation in the Georgia state legislature addressing data centers after last year’s Democratic victories in two statewide races for the Public Service Commission. It’s challenging to understate the political shockwave that election had in the state, which is why this week’s Q&A is with the legislative director for Georgia Conservation Voters. Read on to hear her take on why the state’s politics have become so wrapped up in tech and land use.

New York – Multiple localities in the Empire State are yet again clamping down on battery storage. Let’s go over the damage for the battery bros.

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Spotlight

The Real vs. Imagined Problems with Data Centers’ Water Use

How much water is too much?

Water, a data center, and a protester.
Heatmap Illustration/Getty Images

The data center water issues are real – but they aren’t what you think.

Too often, I hear people say the number one reason they’re against data center development is water use. Heatmap’s data shows water consumption is historically the reason cited most often by activists when opposing projects. This complaint, they often say, is rooted in the fear that this nascent buildout of AI infrastructure will simply draw so much H2O it will leave little liquid left for the rest of us.

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Hotspots

Texas Is the Eye of the Bipartisan Data Center Hurricane

And more of this week’s biggest news around project fights.

The United States.
Heatmap Illustration/Getty Images

1. Matagorda County, Texas – The bipartisan data center backlash is now so powerful that a top Republican Texas state official is doing an event with the Democrat vying to replace him.

  • On Thursday afternoon, outgoing Republican agriculture commissioner Sid Miller and Democratic candidate Clayton Tucker are marqueeing a forum hosted by Matagorda County Against Data Centers, an opposition group that appears to also monitor solar and battery storage for potential opposition, too. Miller is leaving his post at the end of the year after being defeated in a GOP primary by Nate Sheets, who was supported by Gov. Greg Abbott.
  • This bipartisan forum will take place after Abbott himself called for new laws and regulations on data centers in a letter to Texas Public Utility Commission Chair Thomas Gleeson and ERCOT CEO Pablo Vegas. Abbott said he’d push to require data centers to pay costs for electric infrastructure and use “water-efficient technologies such as closed-loop cooling systems.” Also on the to-do list? Mandatory property setbacks and noise reduction.
  • It’s becoming clear the frustrations against AI infrastructure and associated energy projects are starting to boil without a vent. The first county to issue a data center moratorium in Texas has withdrawn the effort after facing a $100 million lawsuit from a developer, and other counties are delaying future moratoria on fears of legal risks. Where will all of this frustration go without the option to pause development locally?
  • We’re starting to see Texas legislators seek to channel this anger. Last week, Rep. Veronica Escobar – a Democrat who represents the dry, data center-anxious city of El Paso – offered an amendment in a House committee to block funding for the EPA’s new data center construction rules. The amendment failed but I’d hardly be surprised to see this sort of rider gain traction if Democrats retake the lower chamber, especially if data centers are a major election issue.

2. Albany County, New York – As we await Gov. Kathy Hochul’s decision on whether to enact the nation’s first statewide moratorium on data centers, I wanted to bring up some pretty crucial facts about the situation in the Empire State.

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Q&A

One Investor’s Climate ‘Realism’ In the Data Center Era

A conversation with Craig Lawrence of Energy Transition Ventures

The Q&A subject.
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This week’s conversation is one of my favorites so far – Craig Lawrence of Energy Transition Ventures. Lawrence has been around the block and back again when it comes to the cleantech investment landscape. So I took note when he got into a brief back-and-forth with an activist fighting data centers in Indiana who claimed there were “so many clean energy people who no longer care about climate change” because they “now support fossil fuel data centers if some nominal amount is met with clean energy.”

Lawrence replied, “Some of us are simply realists.”

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