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A conversation with Center for Rural Innovation founder and Vermont hative Matt Dunne.

This week’s conversation is with Matt Dunne, founder of the nonprofit Center for Rural Innovation, which focuses on technology, social responsibility, and empowering small, economically depressed communities.
Dunne was born and raised in Vermont, where he still lives today. He was a state legislator in the Green Mountain State for many years. I first became familiar with his name when I was in college at the state’s public university, reporting on his candidacy for the Democratic gubernatorial nomination in 2016. Dunne ultimately lost a tight race to Sue Minter, who then lost to current governor Phil Scott, a Republican.
I can still remember how back in 2016, Dunne’s politics then presaged the kind of rural empathy and economic populism now en vogue and rising within the Democratic Party. Dunne endorsed Vermont Senator Bernie Sanders’ 2016 presidential bid and was backed by the state’s AFL-CIO; Minter, a more establishment Democrat, stayed out of the 2016 primary and underperformed in the general election. It doesn’t surprise me now to see Dunne emerging with novel, nuanced perspectives on how advanced technological infrastructure can succeed in rural America. So I decided to chat with him about the state of data center development today.
The following chat has been lightly edited for clarity.
So first of all, can you tell our readers about your organization in case they’re unfamiliar?
We founded this social enterprise back in 2017 because the economic gap between urban and rural turned into a chasm. We traced the core reasons and it was the winners and losers of the tech economy. There were millions and millions of jobs created from the great recession, but the problem was that it was almost exclusively in urban areas, in the services sectors like consulting, finance, and tech. At the end of the day, we believe in the age of the internet there should be no limit to where high-quality technology jobs should thrive.
We work with communities across the country that are rural and looking to add technology as a component to their economy. We help them with strategies – tech accelerators, tech accountability programs, co-working spaces, all the other stuff you need to create a vibrant place where those kinds of companies can emerge so people can come back, come home. We work with 43 regions across 25 states that are all on this journey together and help them secure the resources to execute on that journey.
One of the reasons I wanted to speak with you is your history in Vermont. I went to the University of Vermont, and I loved living there, but there aren’t jobs to keep kids there which is still a huge disappointment to young folks who love living in the state.
At the same time the state reflects many of the same signals we see in Heatmap Pro data around advanced industrial development. Large land owners bristle at new projects regardless of their political party, and Democratic voters are more inclined to side more with locavorism than a YIMBY growth-minded approach.
How do your Vermonter roots inform your work, and do they affect the ways you see the conflicts over new advanced tech infrastructure?
What we’ve seen in Vermont after the Great Recession is that there’s lots of available space and a population that’s aged significantly.
This all impacted my outlook as a community development person, and now as a leader of a social enterprise. We need to be thinking proactively about what an economically healthy community looks like and how we ensure we have places importing cash and exporting value in a way that doesn’t destroy what’s amazing about these rural places. You pretty quickly land on tech, as well as maybe some design-related manufacturing where the ideas are local.
To make it clear, we’re building infrastructure for technology communities which is different from building technology infrastructure itself. That’s an important distinction. It’s about giving them the tools to stand up a tech accelerator and have a co-working space that creates community. A good co-working space has good programming, allows for remote workers to go to a place, and you can have those virtuous collisions that lead to something else. A collaboration. A volunteer project. Whatever it is. Having hack-a-thons, lectures or demonstrations on the latest AI technology that can be used. Youth programming around robotics. If you can create a space where that happens, you create a lot of synergy, which is important in smaller markets – you have to be intentional with all of this.
Okay, so considering those practices, what do you think of the way data center development is going?
For the record, I spent six and a half years at Google and was hired at first because of data centers. At the time, I saw Google try to build a big data center in a community of less than 10,000 people in secret, and it didn’t go well because it just doesn’t work, and that’s how I got my job there.
There is a right way to come into a community with a data center or frankly any kind of global company infrastructure project, and there’s a wrong way to do it. The right way is being as transparent as possible, knowing full well that when a brand name is mentioned, the price goes through the roof for the land. There does have to be some level of confidentiality when you’re ready to go, but once you can, you have to be proactive with it.
You have to be a really good steward on the impacts, whether they’re electrical demand or water demand. It’s about being clear, it’s about figuring out how to mitigate it, and it’s about maintaining your commitment to 100% renewable energy even as you’re bringing online data centers. Oh, and it’s about having a real financial commitment to make sure the community can economically diversify away from being overly dependent on the data center, on that one industry. The data center developers know full well that they’ll create a lot of construction jobs but that’s not going to be a good, sustainable employer. Frankly, the history of rural places is littered with communities that are too dependent on one industry, one company, and that hasn’t
What does that look like from a policy perspective and a community relations perspective?
I think there are models emerging, including from Microsoft, Google, and others, about what good entry and strong commitments look like. It would be great if someone put a line in the sand about 2% of capex going to a community to diversify the economy. It would be great if companies put a reasonable time horizon out there to replace potable water through technology or other kinds of supports. It would be great to see commitments to ratepayers that say people won’t have to foot the bill for increased demand.
Here’s the part we focus on more because we’re not as focused on site selection: Rural America is likely to shoulder the burden of data center infrastructure just like they shouldered the burden of energy production infrastructure. The question at the end of the day is, how do we make sure those communities see the upside? How do we make sure they can leverage tech capacity inside these data centers to be able to have more agency and chart their own economic futures? That’s what we’re really focused on because if you do that, it doesn’t have to be a repeat of the extractive processes of the past, where rural places were used for cheap land and low-wage workers. They can instead be places with lots of land available and incredible innovation, new enterprises and solving the world’s problems.
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What’s the deal with all those “America Connects” videos?
The data center lobby is launching a big PR blitz on television and social media, racking up millions of views on evidently AI-generated content boasting economic impacts from new projects and hitting against criticism around energy and water use.
In an interview with me Wednesday, Data Center Coalition CEO Josh Levi explained how and why his organization – the largest and most prominent data center trade group – stood up an “evolving” national advertising campaign called America Connects.
Like me, up until now, you might’ve interacted with the campaign’s materials without knowing it. For weeks I’ve been getting texts from people in my life who know I write about data centers asking if I’d seen these ads on TV streaming platforms and social media sites boasting benefits from data centers, or pushing back on complaints about energy and water use. Most of the videos were quite similar, appeared to be generated using AI (with no AI labeling), and were racking up millions in views and impressions.
“Our paychecks, our hospitals, our national security – all run through data centers,” states one voiceover in a YouTube ad targeted at the Longhorn State with more than 12 million views as of today.
“In Texas, they’re doing more than keeping us connected. Data centers support high-paying jobs and pay billions in taxes. Money that can lower your bills, make schools and roads better and communities safer. And new technology means data centers consume minimal water while funding new power generation for everyone. Data centers: built in Texas. For Texas.”
These videos each are hosted on channels named for specific campaigns in individual states. In Georgia, it’s called Connected Georgia. There’s a Texas Connects, an Indiana Connects, and a Pennsylvania Connects. At least eight state campaigns are happening right now and I’m told more should be expected in the near future. Each state campaign has a near-identical website with links to their promoted videos, statistics about state-level tax contributions, and employment from data centers, and a somewhat modern-looking red, white, and blue design with moving graphics on the landing page.
But finding out who was behind these videos and websites took a lot of digging. None of the state campaign websites have contact information and they were all registered by a proxy firm that gets web addresses for entities that want to remain anonymous. Most of the advertising itself was opaque; it’s not easy to research TV commercial spends and Google doesn’t disclose how much a company or person pays to promote individual ads. But there were signs of significant spending, as Meta’s Facebook and Instagram advertising disclosures revealed to me there was five-figure spending on static images, resulting in millions of potential impressions.
Eventually I was able to figure out what was going on. Each of the state campaigns also described themselves online as nonprofits but in fact, there is one nonprofit. It initially formed for the first state campaign, Virginia Connects. Its public 2024 tax disclosures show the campaign was formed by Levi and others working with the Data Center Coalition. On the DCC’s website, the trade group does have a landing page for what it calls “America Connects” and directs people to each state campaign but, as of today, the organization describes them as “regional coalitions” they “partner” with on “helping educate and engage citizens, policymakers, and other stakeholders on the data center industry, its benefits, and key issues including energy, water, economic development, and community engagement.”
In our interview, Levi explained these state campaigns aren’t just partners – they’re creations of a single nonprofit he said was “stood up” by the trade group named America Connects, and it began in 2024 through the Virginia Connects campaign. America Connects is now “a vehicle by which the broader community can engage and participate” in what Levi described as “broader industry messaging” that isn’t “just project by project.” It’s a direct response, Levi said, to the lack of any industrywide PR offensive challenging the mountain of public opposition to data centers shown in poll after poll. (With the exception of that one Meta ad campaign.)
“What we have heard very clearly is that a lot of the partners we work with, but also a lot of the voices from the public at large, is that the industry broadly needs to do a better job communicating. A better job talking about what we do, how we do it, and about the positive benefits of what localities can expect from data center development,” Levi said.
Levi told me the core of the group is at least three people: himself; Allison Gilmore, the chief operating officer of the DCC; and Kevin Hughes, the group’s treasurer and the chief external affairs officer at the data center developer STACK Infrastructure. He said I should expect “an expansion on the board” but declined to say who or what companies. Part of the team also includes LINK Public Affairs, a communications firm based in Virginia that helped on the initial campaign in the state.
I asked how an industry-backed campaign like this would help with the backlash. “Silence breeds mistrust, fundamentally. It is critically important as we see continuing conversations around the data center industry – what it does, what it doesn’t do, how it does – is part of informing those conversations,” Levi replied. “It is important the industry not be silent and be an active contributor in terms of the public dialogue around data centers. This is that.”
The DCC wouldn’t tell me how much is being spent on the America Connects campaign and it’s impossible to know from what’s publicly available.
Here’s what Levi would say about the money: that America Connects is funded by the data center “ecosystem generally,” including developers, companies within the supply chain, and “workforce voices.” But Levi wouldn’t even confirm if they were spending more than they had in just the Virginia campaign, which sort of logically has to be the case if they’ve expanded this effort.
“White it’s maybe not a satisfying answer, we will spend what we have to when it comes to ensuring we reach people where they are. But I’m not able to provide any kind of concrete number for you.”
And more of the week’s top news around project fights.
1. Richland Township, Louisiana - The Meta Hyperion project is suddenly now a central focus of activists and media coverage, just as it is seeking environmental permits for a key gas pipeline.
2. Memphis, Tennessee – Hyperion won’t be the first data centers that House Democrats go after if they retake the lower chamber in Congress though – that looks like it’ll be xAI’s Colossus projects. Congrats, Elon!
3. Clark and Nye Counties, Nevada – The federal government’s decision to use an environmental review for a solar farm on a data center instead, which I scooped earlier this week, quickly became a national story. Now the fight against the move is coming into focus.
4. Suffolk County, New York – Last but not least, we have to talk about the battery fire mess on Long Island because it’s a disaster in the making.
5. Montgomery County, Maryland – Bonus for you: my home county just instituted an 18-month moratorium on new data centers. I don’t really have much to add except, if the backlash has come to my neighborhood it’ll probably hit yours sooner rather than later.
This week’s conversation is with Peter Gardett, CEO of the AI-powered energy market research firm Noreva. Before helming the price and deal research consultancy, Gardett built a strong repertoire as an energy expert spearheading analysis at S&P Global, IHS Markit, and Argus Media. I reached out to Gardett because I wanted a candid conversation about the fuel choices data center companies are making under the Trump administration and, to my delight, Gardett was open to sitting in my hot seat.
Let’s get into it then. The following conversation was lightly edited for clarity.
How is the Trump 2.0 era affecting the choices data center developers are making when it comes to powering with gas versus alternative sources like renewable energy or nuclear power?
Well I think the question you’re asking is about natural gas, and what I tell people is every private equity firm has a behind-the-meter 1 gigawatt natural gas project they’d like to move forward. They’re familiar with the economics. They like the regulatory fortune for that fuel right now. They look at the futures curve and think the prices will be stable for this fuel in the future, I would argue discounting some of the likely volatility drivers that exist.
There’s clearly a rush to island yourself with your natural gas supply and let the rest of the world do what it might, if you’re a large hyperscaler.
If you look at the Meta facility in Louisiana – Hyperion – that’s a good example, or the X facility Colossus. The first mega data centers become the blueprints everyone would like to follow.
You brought up the regulatory appetite for gas infrastructure. How much of this rush to build gas from the industry side is due to federal policy changes?
Quite a bit. There have been major changes to implementation of the Clean Water Act that provably have been part of what’s enabled large construction of data centers and the accompanying power. It’s the same kind of shifts in oversight, when it comes to the Clean Water Act. We saw a proposal from the EPA to allow states to implement some parts of the Clean Air Act, which would certainly make it easier for them to build large gas generation that accompanies a large load.
It’s part of an entire emerging trend I theorize as “the great data center migration.” You have everyone moving down to the AI band, to West Texas to Georgia – that strip of states is where large data centers are moving and where the power will follow.
With respect to the renewable side of things, the nuclear side, alternative fuel choices than gas – are they benefiting from this buildout?
Yeah, I mean, we’re in a strange moment for renewables.
There’s been a rush to get things online before the July 4 tax cliff. If you look at additions to the grid, solar and batteries have benefited from this condensing of the pipeline and moving forward of the pipeline to avoid the cliff. We’ve seen a lot of buildouts and a lot of those electrons have gone to data centers. I’m doing a PPA project for a client right now that shows PPA prices having tripled in some regions, and that’s for renewables – solar and wind. You see plenty of demand. If you can get your hands on an electron you’re going to pay for it and go ahead. You don’t mind what kind of electron it is.
That being said, there’s a requirement for a capacity factor to create reliability. Where you’re looking to do behind-the-meter stuff and you feel you’ll be unable to interconnect, or you want to build your own power supply… that does have a unique match to natural gas. All you’re going to need is pipe and available fueling capacity. If you can find the fuel and if you can place yourself over a gas system that’s underutilized, a lot of your other concerns go away. You have access to a power source with a very high capacity factor, is reliable, and matches to your load. The equivalent of solar would require a vast amount of land, changing the economics of a project.
Before the start of this federal regime in the U.S., the trendline was investment going towards green capital – zero-emission generation. Obviously things have changed. From your vantage point in the market, when it comes to where investors are putting their money, has it gone from green power to data centers specifically? Is this boom a redirection, taking their money and putting it into something else?
This is not a trade-off moment. It’s an expansion moment.
We’ve seen a Venn diagram between digital infrastructure and power infrastructure. They move directly over each other, overlapping in capital markets. This is understandable; it’s the one thing you can’t do without if you have a data center. If you want chips, you also need power. And I think people underestimate how much one gigawatt of power is.
There’s a rush to build anything. It’s about more than anything else. I do think the second half of 2026 will be an interesting test of a thesis that a lot of renewables people have been talking about, which is that the low cost of energy – the LCOE factors – is still favorable and even without tax credit support there will be a lot of further additions. We’ve seen models, and we’ve done models, that have renewables as kind of an air pocket because it’s so cheap and the fuel cost. But on the other hand you can make the argument there’ll be a bigger problem.
When it comes to the investor space, how seriously do folks take opposition to data centers as a medium and long term risk – not just the next few weeks but the coming elections?
Very seriously. What you see in PJM with demand destruction is being taken very seriously by a number of the large institutional asset managers, some of the large institutional asset managers. These are people who are my biggest clients. I’m under some confidentiality when it comes to talking about them but nonetheless I can tell you that there are several large projects in PJM that are announced and appear on paper to be fully financed that are actually in cold storage until there is a better understanding of what is going to happen with large load, in PJM and Pennsylvania in particular.
There are large energy projects that are waiting around to see if the demand is going to materialize?
Exactly.
It doesn’t sound like an easy place to be if you’re developing these assets, no?
No.
If you’ve done the work and seen the models, it's very difficult to get this capital running in one direction and have an ISO operator say it's too expensive or puts too much on ratepayers. What you’ve seen folks try to do is create a secondary market, a parallel market, in which price discovery for that kind of power – large load – where it won’t filter through to ratepayers. But that’s much more difficult to pull off. The complexity of operating a grid in that way.
This is why more people are turning to behind the meter and to gas.