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Policy Watch

Trump’s Energy Direction: 5 Early Takeaways

And more on this week’s top policy and energy news.

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Trump and wind.
Heatmap Illustration/Getty Images.

Trump’s energy direction – We’re far enough into the Trump 2.0 transition that I can offer a few specific insights having covered him the first go-around.

  1. Trump’s pick for Interior Secretary Doug Burgum indicates any form of energy or resource extraction prevalent in his state of North Dakota could be safe from the wrath of political meddling in permitting. That includes onshore wind and battery metals.
  2. Trump’s selection for Energy Secretary – gas CEO Chris Wright – indicates even more reason for optimism about mining given the heavy overlap between companies in historic fracking development and U.S. lithium industry growth.
  3. Trump’s EPA pick Lee Zeldin previously backed legislation to ease permitting for renewable energy, though I anticipate from his lack of agency leadership experience that he’ll be more deferential to political directions than a former governor or CEO.
  4. Cantor Fitzgerald CEO Howard Lutnick was chosen for the Commerce Department, which will dictate tariff proposals. Although Cantor Fitzgerald itself supports the “megatrend” that is the energy transition, I expect China hawkishness to prevail above fear of short-term impact on American renewables projects.
  5. Even with all this, you should expect the deputy picks to matter for solar and wind. Trump 1.0 began with figurehead agency leaders (Ryan Zinke at Interior, Scott Pruitt at EPA) and an empowered assistant administrator, who was usually a former lobbyist or ideologue. I’m anticipating the same here.

New hydrogen hub backing – The Energy Department has announced more than $2.2 billion in cost-sharing agreements with two more hydrogen hubs in the Midwest and Gulf Coast.

  • Both hubs appear to rely on both renewable energy and natural gas to get their jobs done. Given the uncertainty surrounding Trump’s views on hydrogen, it’s likely this move is intended to get out ahead of any effort to claw back funds from the infrastructure law and Inflation Reduction Act.

Here’s what else I’m watching…

A Virginia Circuit Court has struck down Governor Glenn Youngkin’s attempt to withdraw the state from the Regional Greenhouse Gas Initiative.

Massachusetts Governor Maura Healey signed new legislation creating new tax breaks and financing for offshore wind as she defiantly insists the industry will continue to grow during the Trump 2.0 era.

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Hotspots

Meta Data Center Federal Pipeline Review Due Early Next Year

And more of the week’s top fights around development.

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The United States.
Heatmap Illustration/Getty Images

1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.

  • On Wednesday, the Federal Energy Regulatory Commission laid out plans for an environmental assessment of the Entergy pipeline for the Meta data center under the National Environmental Policy Act and stated it’ll be issued in early January 2027. Federal agencies have been ordered by the panel to complete any remaining decisions on authorizations by April.
  • The decision to do an environmental assessment under NEPA will be controversial. The Sierra Club filed comments to FERC stating they wanted an environmental impact statement instead that took into account the environmental impacts of the data center being fed by the pipeline, as well as a review of the project’s cumulative impacts, as the activist group said they’re explicitly linked to the data center’s operations. “The power stations and data center are not remote or speculative developments unrelated to the proposed action,” their comments read.
  • This is quite similar to what’s playing out with the Green Chile pipeline in New Mexico for Oracle and OpenAI’s Project Jupiter, which we recently explained could turn into litigation with high stakes for future gas pipelines linked to data centers. But to me, this conflict with Meta feels like it has more at stake for this individual project, as it’s playing out while construction on gas power plants for the data center has been underway for almost a year after earlier being blessed by state regulators.
  • I asked Sierra Club what could happen next. Eric Huber, one of their managing attorneys, told me on Thursday, “I heard the EA is expected in January, but we are in wait and see mode and will decide on further steps when it comes out.” Meta and Entergy did not respond to a request for comment.

2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.

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Plus

Is the Election Really About Data Centers?

Talking with Kevin Gundersen, the head of public affairs for Digital Realty.

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Kevin Gundersen
Heatmap Illustration

This week’s conversation is with Kevin Gundersen, head of public affairs for data center developer Digital Realty. On Wednesday, Digital Realty released a fascinating poll as part of Infrastructure for America, a pro-data center organization that also includes Compass, Vantage Data Centers, and QTS. The poll pushed back on the idea that we’re currently in the middle of a “data center election”; instead, it found most voters are not expected to choose their national elected officials based on a politician’s stance on data centers.

I reached out to folks involved in the poll's release, and they put me in touch with Gundersen, whom I’ve met before and consider to be a straight shooter. He accepted my invitation to do a candid hot-seat chat about the findings, his thoughts on all the data center attack ads, and whether his industry’s actually recovering any ground with the American people.

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Spotlight

Trump Hasn’t Been Advancing New Wind Farms During Permitting Talks

Only upgrades for pre-existing wind projects have been approved.

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Donald Trump.
Heatmap Illustration/Getty Images

In September, the Trump administration told a reporter that the president directed the Pentagon to finally process wind projects through routine airspace approvals as required under a court order. By doing this, it created the appearance of real headway and good faith in talks with Democrats in Congress on energy permitting legislation before the November midterm elections.

But the White House’s assurances are not what they seem.

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