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A conversation with Craig Lawrence of Energy Transition Ventures

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.”
It was a provocative answer. I reached out to Lawrence and asked if he’d explain what realism on cleantech and climate change looks like in the age of the data center boom. The following conversation was lightly edited for clarity.
So okay, what does “realism” in the clean energy space look like in the era of the data center boom?
In general, it looks like progress. Whether that’s technological or social, which often includes increased energy consumption. This is an extreme example of demand appearing at once. And what’s been incredible for me over 25 years of being involved in this stuff is, we’re finally at a point where clean energy can meet most of this demand – the cost of renewables and the cost of energy storage are now at a point where they directly compete with or without subsidies against fossil fuels.
However we’re not at a point where it's reasonable to expect 100% of this demand can be renewables. I don’t think that’s practical. Natural gas is still a very affordable, very flexible energy source. The data centers are going to use them.
I think the game should be figuring out how to support the most clean energy. That includes nuclear and other low-carbon sources to meet this demand.
I’d like to represent the other side of this really quickly. The pro-moratoria side here would be, why? Why do we actually have to build all of this? Why not just halt these data centers so the gas isn’t built, then invest in renewable energy to green our grid?
I made that comment about being a realist. We have an administration in this country that isn’t going to do that. Who will halt that? Who is in a position to actually do that? The answer is nobody.
We have another problem to worry about – the administration halting renewable energy projects. We have to prevent that from happening. I’ve been following the school of thought that there’s a grand bargain on permitting reform applying to renewables and other sources of energy.
I honestly truly believe that head to head, renewables and energy storage beat natural gas. In the free market of power, as much as it is a free market, renewables are winning and so you are painting a target on your back trying to stop all development unless it’s 100% renewables. You’re going to face a backlash from that.
In the U.S., 93% of new electricity generation is solar, wind, and storage. Do you really need 100%? You’d like it to be but man, take the W.
We’re winning. Not only are we winning but we are destroying the competition. To create a battle that has the potential to create significant backlash against renewables is the wrong move right now.
Okay, but on the opposing side someone would say that argument is what landed us in this place to begin with. Some would say a frame of realism is why we can’t seem to shake a reliance on fossil fuels.
I don’t think that’s the reason why.
Once renewables and storage became cost competitive they’ve dominated since. Prior to that, they weren’t cost competitive and it was a policy fight to say people should be forced to buy more expensive electricity that was cleaner for the climate. That battle was difficult and had some wins and some losses. We’re past that battle now.
Renewables are winning in the global market. Would I love a scenario where we could meet all the demand with solar, wind, and batteries? Yes. And I think we can get there, but there are real practical limitations to those resources too. They’re not 24/7 resources, even though they’re getting close to that.
Let’s just say I agreed with them and that side of the argument. What can you do about it with this administration? You can certainly try to elect candidates that’ll be supportive of it. You can’t force a moratorium.
Luckily, for that side of the argument, there’s plenty of people upset about data centers that aren’t just thinking about climate change.
How do you feel about the data center backlash as an investor in cleantech, and does it impact the decisions you make around who you potentially finance?
Not yet. The data center boom for us is indicative of a broader boom for increased electricity demand, which is generally good for what we invest in.
I think this feels very deja vu. Whether it's nuclear or renewables or pipelines, someone is going to be against it and make a lot of noise. That’s part of the reason we struggle to build things in this country.
But no, if anything, the whole AI and data center buildout is a tailwind for the energy transition and climate technologies. It’s helping gas too, no doubt, because people are trying to procure any power they can, and so they’ll do it by whatever means necessary, but I continue to think we’re oversupplied globally on solar panels and batteries. That’s thanks to China, primarily. And you can build those facilities in one or two years. Gas has five-plus lead times for turbines. We’re in a position to win that battle without having to make it a political battle over halting the buildout of these things.
Do you think the upset over data centers will impact the energy projects to power them?
Yes, I do. I’m seeing subsections of X, farmers and people purporting to support them, that are really upset about solar on farmland and engaged in interesting discussions around it. The same happens with data centers and farmland. It’s interesting to try and figure out their motivations. Is it preserving the farming or an angle to attack development they don’t like?
I am seeing a mobilization of people against buying up land and buying up electricity and water and using it for… xyz. Right now the flavor is data centers. It’ll be something else down the road. We’ve even heard the same things around the EV charging buildout.
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A chat with Colette Lamontagne, senior director for electric power at Ceres.
This week’s conversation is with Colette Lamontagne, senior director for electric power at the sustainability finance advocacy group Ceres. Her team just released a shareholder engagement guide for the utility space around data center development. I’ve been wondering when the ESG crowd would enter into the AI infrastructure fray, so I asked if I could chat with Colette about what the guide could teach my lovely readers and whether the data center backlash portends a new wave of boardroom fights between electric companies and institutional investors.
Our conversation was lightly edited for clarity.
What is the big message of this guide? If you were to talk about this over a coffee, what would be the topline takeaway?
These data centers are coming, but they can be done right. They don’t have to be done in a way that negatively impacts energy, water, and communities, and we need to slow down just enough to be able to do it right.
It’s not a guide about what data centers should do — it's a guide on the risks to the electric power sector. The biggest risk is the magnitude of power needed and the timing — how quickly it’s needed. Because of that, the traditional process for electric utilities can’t keep pace. It’s all regulated. There’s a lot of steps they have to go through to build new transmission infrastructure and new generation. If the grid connected companies can’t keep up the pace, data centers will just build their own generation. And the biggest problem with that? You have all these resources not shared by the users.
Do you think data centers are going to create a new wave of ESG-based investor advocacy?
I haven’t thought about it as a new age for ESG, but that’s a good point. We are moving beyond asking companies about targets and to create transition plans. Now we’re looking at how to accelerate solutions for climate impacts. I do think there’s a new age related to that.
When it comes to data centers, the questions aren't about utilities and their targets, but instead how they’ll meet this need so they don’t go back to old coal plants or [build] new [behind the meter] plants not used by the grid.
Should we anticipate some kind of new shareholder advocacy wave around how integrated utilities and power companies address or mitigate the impacts of the data center boom on meeting their resource plans, especially decisions made as a result of shareholder advocacy on climate?
If a data center comes to a utility and says they need 100 megawatts of power and the utility chooses to serve that with coal or gas instead of new renewables, it will impact their clean energy goals. If they say they signed a power purchase agreement and give all these renewable resources to a data center, that’s not new — you’re still impacting your clean energy goals because then you’re taking the renewables away from other customers. You have to build something else for those other customers. What are you building instead?
How they think about their long-term resource plans is really important. These generation sources will be around for a very long time. In most cases, renewable energy is cheaper to build. Gas plants require a four- or five-year wait for turbines. So not only is it better for the environment but better for business to get these renewables built.
I’ve written a lot about data center water use. The guide goes into the energy sector’s water use impacts from this increased power demand from data centers; specifically, it says investors should consider asking utilities to conduct new comprehensive water risk assessments around it. Can you help my readers and I better understand what this kind of assessment is and why companies should consider doing this?
Different types of electric generation facilities use different amounts of water. Some of it is withdrawn and put back. Some of it is withdrawn and consumed. Those matter. In cases when water is drawn and put back, the temperature goes up — that’s impacting the environment.
It’s an interesting dichotomy. The new technologies that use air cooling use less water, but they use more energy. Then you have to think about what electricity you’re using and how much water that electricity is using. It’s the life-cycle impacts.
Is there any kind of risk for investors or energy companies associated with the data center sector, given its political challenges?
Well, utilities usually get the short end of the straw. They always get blamed for everything. I say that with a laugh because I used to work for a utility.
Some of these companies have an obligation to serve. If someone comes to them and says they need power, they are required to provide it. However, they can protect themselves and other ratepayers. If the utility builds a whole generation plant and all this transmission infrastructure to serve one data center, and then the data center gets canceled, yeah that’s a risk — not to the bottom line of the utility but to their reputation.
Plus more on this week’s biggest development fights.
1. Washtenaw County, Michigan — The Mitten State made itself the center of the data center backlash this week, as multiple AI skeptics won key Democratic congressional primaries. Yet the most significant election result wasn’t a primary vote, but rather a quiet referendum in a small town outside Ann Arbor.
2. Travis County, Texas — I’ve been getting a lot of texts from sources about Texas Governor Greg Abbott issuing a stop to data center permitting. Let’s get into what really is happening here.
3. Jefferson County, Missouri — Data center opposition can win a Republican political primary, too, as demonstrated this week in this rural pocket of the Show-Me State.
4. Santa Clara County, California — We conclude this week’s Hotspots with a warning about the dire political straits of battery storage technology.
The agency is reportedly considering a land swap that would allow AI infrastructure in one of northern Virginia’s largest green spaces.
A national park site and Civil War conflict area in Virginia is now a battleground in the fight over data center development on federal real estate — and Congress is starting to get involved.
On July 23, the Prince William Times reported that Trump’s National Park Service is “considering a land swap” to allow “at least four data centers” on land within the boundaries of Prince William Forest Park in northern Virginia, one of the largest green spaces in the Washington D.C. metro area and a flashpoint during the Civil War. Since then, my colleagues and I have confirmed based on interviews with sources familiar with the plan, public lobbying disclosures, and previously unreported correspondence from Congress to the Park Service that, indeed, there has been a concerted behind-the-scenes effort to make this swap happen, going back more than a year. Many of those concerned about the idea of this exchange told me they’ve been unable to get clear answers from the Park Service on the likelihood of the swap.
Here’s what we do know: A data center development company, Highland Digital, under an LLC registered by their legal counsel, has sought permission from Prince William County to build a large tech infrastructure complex next to the park, at a site other companies have sought to rezone for that purpose since at least 2022. Though the land is within the park’s boundaries, it is not actually owned by the park; it was held by a private entity before the site was established, enabling it to be used for development through a quirk in public land use law colloquially known as “inholding.”
Meanwhile, the data center backlash has made siting new projects in Northern Virginia increasingly difficult. In Prince William County specifically, supervisors rejected a large data center project near Dulles Airport last month. The sort of land Highland Digital has access to would be challenging to develop in this political environment, given that county planning office staff said it also included wetlands and streams that made permitting difficult.
So as Highland Digital struggled to get permission, it came up with a Plan B, according to two local park conservation advocates familiar with the project’s progress: It could swap some of the land in the park with other parcels close by owned by the Park Service without as much ecological sensitivity. The company retained a lobbyist, Jeff Small, who was a senior adviser to the Interior Department under the first Trump administration and last year publicly boasted of close ties to the White House (which distanced itself from him in response). Small lobbied the National Park Service and Interior Department for a land exchange on Highland Digital’s behalf starting in May 2025 through the first quarter of this year, according to federal lobbying disclosures.
Around this time, Ashley Studholme, executive director of the Prince William Conservation Alliance, first learned about the land swap proposal. Studholme told me Highland Digital CEO Peter Batten proposed the idea to the park’s superintendent George Liffert in a meeting the three had that month with Small in attendance. Highland Digital provided Studholme and Liffert with a map she shared with me outlining different parcels that would be involved. Studholme said that afterwards, nearly identical parcel delineations were then added to an official National Park Service GIS map online. This meeting and map change assertion were first reported by the Prince William Times.
Kyle Hart, a senior program manager for the National Parks Conservation Association, told me his organization has had “loose discussions” with Park Service staff about the land swap, which he described as “a newer thing” that “we know has been proposed.”
In response to my request for comment, NPS sent the following statement attributed to an unnamed spokesperson: “The National Park Service preserves the historic, cultural and natural integrity of national parks, including Prince William Forest Park. The NPS does not regulate private land use outside park boundaries or comment on speculative uses.”
On paper, Hart told me, the swap has some upsides for NPS. The Park Service would get more land in the deal than Highland Digital would acquire. It could also permanently protect sensitive resources. But the cumulative impact of the exchange, he said, is unambiguously in Highland Digital’s favor.
“The developer comes out ahead,” he told me. “You combine that with another 100 or so acres [they hold] that is direct road frontage, and you have land primed for development without any of the hiccups of pesky streams and so forth. And they’d be doing this to expedite a data center within their borders directly adjacent to the land they’re protecting.”
In mid-July, before the Prince William Times story published, staff for Representative Eugene Vindman — the Democratic congressman whose district includes the park — contacted the Park Service requesting “reports of a potential exchange or transfer of land within Prince William Forest Park. The inquiry asked for information on deed ownership as well as any legal authority for the Park Service to exchange land with a private corporation for development without congressional approval.
Vindman’s staff provided their request to me this week, informing me they never heard back.
“I’m very concerned about the proposed data center development in and near Prince William Forest Park,” Vindman said in a statement his office provided. “I have been clear that data centers should not be built near parks, schools, or residential communities, and I’ll continue to fight for our community on this issue.”
Very little about Highland Digital or its data center plans is available online, while Data Center Dynamics, a trade publication, has reported that details about the data center are “sparse.” A public meeting to discuss the project planned for the parcel the company currently owns was scheduled for May, but was then canceled after the developer rescinded a permitting application with Prince William County without a stated reason.
Highland Digital did not respond to requests for comment. Neither did representatives from Jeff Small’s firm, 76 Group, who was registered to lobby for the developer on behalf of EIS Solutions, the firm’s name before it rebranded in 2021. Small’s contact information is not public and I was unable to reach him for this story.
With reporting by Matthew Zeitlin.