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Hotspots

Don’t BESS With Texas

A county commissioner ousted over batteries, plus more of the week’s biggest renewables and data center fights.

The United States.
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Menard County, Texas – An anti-battery campaign just ousted a member of a county commission who would have had to consider storage infrastructure on his own property.

  • Sitting commissioner Tyler Wright was ousted last week in a Republican primary election by Gary Hardin, the favored candidate of grassroots anti-battery activism outfit Don’t BESS with Menard. There is no Democratic challenger, so Hardin now wins the seat by default.
  • According to the Menard News – a local media outlet owned by Wright and his wife – the contested battery storage project is being developed on their property. Wright tried to assuage concerns about conflicts of interest by saying he’d recuse himself from future decisions but couldn’t avoid a loss. This is a super rural county with exceptionally low voter turnout — this county commission race received just 170 votes — and is therefore extremely susceptible to wedge issues like these that bring out a deciding minority.

Wake County, North Carolina – There mere idea of impending restrictions killed a data center here this week.

  • Developer Natelli Investments claimed the New Hill Digital Campus would have a muted impact on local electricity bills by relying on broader regional transmission lines and drawing power from a repowered nuclear plant nearby. Natelli also said it would use water supplies ruled out for human consumption and recirculate water to avoid excessive demand.
  • None of that moved the needle. The project would have been built in the small town of Apex, north of Raleigh, where officials have been preparing a one-year moratorium on data center development. This week Natelli withdrew its applications to get zoning approval for the data center campus, citing the likelihood of Apex restricting development.

Frederick County, Maryland – This agriculture-dense county seems to be gearing up for a big ol’ data center referendum.

  • Activists have gotten enough signatures from local residents to put the question of whether to allow future data centers up for a vote this fall. Efforts to tee up this ballot question only started after the county greenlit new zoning maps toward the end of last year allowing for new digital infrastructure.
  • Frederick County is no stranger to land use conflicts. In November I explained how a fight over transmission related to the Piedmont Reliability Project had transformed this farming county into a hotbed of resentment over new electrical upgrades.

Montcalm County, Michigan – Pour one out for the Montcalm wind farm.

  • This week Apex Clean Energy pulled the plug on Montcalm, a nearly 50,000-acre wind energy project, after years of opposition led to difficulty securing land use agreements and property rights.
  • In 2022, voters across three different townships voted to recall multiple officials and reject zoning ordinances supporting construction of the Montcalm wind project. Things haven’t really progressed since then.

Dunn County, North Dakota – At least one company is vying to start work on a fresh wind farm proposal: NextEra.

  • The company announced this week that it would begin advancing the new Blizzard wind farm through permitting in 2028. There’s no record of previous conflicts in Dunn County, but there’s a good reason NextEra is taking its time: The county has a high chance of concerted opposition, carrying an 80 opposition risk score in the Heatmap Pro database, not to mention North Dakota’s recent back-and-forths around wind farm fights.

Hartford County, Connecticut – The state of Connecticut’s siting council approved expanding a DESRI Holdings-backed solar farm in the rural town of East Windsor.

  • It should’ve been a victory for some kind of permitting reform. But instead, the decision has been met with criticism from residents of East Windsor, a prototypical New England vacation town filled with old time-y historic buildings.
  • The upset against this project — which, to be clear, is pretty small, adding just about 30 megawatts of new electricity to the local grid — is bipartisan, with frustration coming from local elected Democrats as well as Republican candidates for office in Connecticut. I anticipate some form of legal or political challenge against the state regulator, as this anger will have to be vented somehow.
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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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