The Fight

Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Q&A

Could Blocking Data Centers Raise Electricity Prices?

A conversation with Advanced Energy United’s Trish Demeter about a new report with Synapse Energy Economics.

Trish Demeter.
Heatmap Illustration

This week’s conversation is with Trish Demeter, a senior managing director at Advanced Energy United, a national trade group representing energy and transportation businesses. I spoke with Demeter about the group’s new report, produced by Synapse Energy Economics, which found that failing to address local moratoria and restrictive siting ordinances in Indiana could hinder efforts to reduce electricity prices in the state. Given Indiana is one of the fastest growing hubs for data center development, I wanted to talk about what policymakers could do to address this problem — and what it could mean for the rest of the country. Our conversation was edited for length and clarity.

Can you walk readers through what you found in your report on energy development in Indiana?

We started with, “What is the affordability crisis in Indiana?” And we found that between 2024 and 2025, residential consumers paid on average $28 more per month on their electric bill. Depending on their location within the state, those prices could be as much as $49 higher per month. This was a range based on all the different electric utilities in the state and how much residents’ bills are increasing. It’s pretty significant: 18% average across the state, and in some places, as high as 27% higher year over year.

Then Synapse looked into trends of energy deployment and made some assumptions. They used modeling to project what “business as usual” would look like if we continue on our current path and the challenges energy resources face in being built in Indiana. What if those challenges were reduced, streamlined, or alleviated to some degree, and we saw an acceleration in the deployment of wind, solar, and battery energy storage?

They found that over the next nine years, between now and 2035, consumers could save a total of $3.6 billion on their energy bills. We are truly in a supply-and-demand crunch. In the state of Indiana, there is a lot more demand for electricity than there is available electricity supply. And demand — some of it will come online, some of it won’t, depending on whose projections you’re looking at. But suffice it to say, if we’re able to reduce barriers to build new generation in the state — and the most available generation is wind, solar, and batteries — then we can actually alleviate some of the cost concerns that are falling on consumers.

How do cost concerns become a factor in local siting decisions when it comes to developing renewable energy at the utility scale?

We are focused on state decisionmakers in the legislature, the governor’s administration, and at the Indiana Utility Regulatory Commission, and there’s absolutely a conversation going on there about affordability and the trends that they’re seeing across the state in terms of how much more people are paying on their bills month to month.

But here lies the challenge with a state like Indiana. There are 92 counties in the state, and each has a different set of rules, a different process, and potentially different ways for the local community to weigh in. If you’re a wind, solar, or battery storage developer, you are tracking 92 different sets of rules and regulations. From a state law perspective, there’s little recourse for developers or folks who are proposing projects to work through appeals if their projects are denied. It’s a very risky place to propose a project because there are so many ways it can be rejected or not see action on an application for years at a time. From a business perspective, it’s a challenging place to show that bringing in supply for Indiana’s energy needs can help affordability.

To what extent do you think data centers are playing a role in these local siting conflicts over renewable energy, if any?

There are a lot of similarities with regard to the way that Indiana law is set up. It’s very much a home rule state. When development occurs, there is a complex matrix of decision-making at the local level, between a county council and municipalities with jurisdiction over data centers, renewable energy, and residential development. You also have the land planning commissions that are in every county, and then the boards of zoning appeals.

So in any given county, you have anywhere between three and four different boards or commissions or bodies that have some level of decision-making power over ordinances, over project applications and approvals, over public hearings, over imposing or setting conditions. That gives a local community a lot of levers by which a proposal can get consideration, and also be derailed or rejected.

You even have, in one instance recently, a municipality that disagreed with the county government: The municipality really wanted a solar project, and the county did not. So there can be tension between the local jurisdictions. We’re seeing the same with data centers and other types of development as well — we’ve heard of proposals such as carbon capture and sequestration for wells or test wells, or demonstration projects that have gotten caught up in the same local decision-making matrix.

Where are we at with unifying siting policy in Indiana?

At this time there is no legislative proposal to reform the process for wind, solar, and battery storage developers in Indiana. In the current legislative session, there is what we’re calling an affordability bill, House Bill 1002, that deals with how utilities set rates and how they’re incentivized to address affordability and service restoration. That bill is very much at the center of the state energy debate, and it’s likely to pass.

The biggest feature of a sound siting and permitting policy is a clear, predictable process from the outset for all involved. So whether or not a permit application for a particular project gets reviewed at a local or a state level, or even a combination of both — there should be predictability in what is required of that applicant. What do they need to disclose? When do they need to disclose it? And what is the process for reviewing that? Is there a public hearing that occurs at a certain period of time? And then, when is a decision made within a reasonable timeframe after the application is filed?

I will also mention the appeals processes: What are the steps by which a decision can be appealed, and what are the criteria under which that appeal can occur? What parameters are there around an appeal process? That's what we advocate for.

In Indiana, a tremendous step in the right direction would be to ensure predictability in how this process is handled county to county. If there is greater consistency across those jurisdictions and a way for decisions to at least explain why a proposal is rejected, that would be a great step.

It sounds like the answer, on some level, is that we don’t yet know enough. Is that right?

For us, what we’re looking for is: Let’s come up with a process that seems like it could work in terms of knowing when a community can weigh in, what the different authorities are for who gets to say yes or no to a project, and under what conditions and on what timelines. That will be a huge step in the right direction.

Yellow

This article is exclusively
for Heatmap Plus subscribers.

Go deeper inside the politics, projects, and personalities
shaping the energy transition.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Hotspots

More Turbulence for Washington State’s Giant Wind Farm

And more of the week’s top news around development conflicts.

The United States.
Heatmap Illustration/Getty Images

1. Benton County, Washington – The bellwether for Trump’s apparent freeze on new wind might just be a single project in Washington State: the Horse Heaven wind farm.

  • Intrepid Fight readers should remember that late last year Rep. Dan Newhouse, an influential Republican in the U.S. House, called on the FAA to revoke its “no hazard” airspace determinations for Horse Heaven, claiming potential impacts to commercial airspace and military training routes.
  • Publicly it’s all been crickets since then with nothing from the FAA or the project developer, Scout Clean Energy. Except… as I was reporting on the lead story this week, I discovered a representative for Scout Clean Energy filed in January and March for a raft of new airspace determinations for the turbine towers.
  • There is no public record of whether or not the previous FAA decisions were revoked and the FAA declined to comment on the matter. Scout Clean Energy did not respond to a request for comment on whether there had been any setbacks with the agency or if the company would still be pursuing new wind projects amidst these broader federal airspace issues. It’s worth noting that Scout Clean Energy had already reduced the number of towers for the project while making them taller.
  • Horse Heaven is fully permitted by Washington state but those approvals are under litigation. The Washington Supreme Court in June will hear arguments brought by surrounding residents and the Yakima Nation against allowing construction.

2. Box Elder County, Utah – The big data center fight of the week was the Kevin O’Leary-backed project in the middle of the Utah desert. But what actually happened?

Keep reading...Show less
Yellow
Q&A

What the ‘Eco Right’ Wants from Permitting Reform

A conversation with Nick Loris of C3 Solutions

The Fight Q&A subject.
Heatmap Illustration

This week’s conversation is with Nick Loris, head of the conservative policy organization C3 Solutions. I wanted to chat with Loris about how he and others in the so-called “eco right” are approaching the data center boom. For years, groups like C3 have occupied a mercurial, influential space in energy policy – their ideas and proposals can filter out into Congress and state legislation while shaping the perspectives of Republican politicians who want to seem on the cutting edge of energy and the environment. That’s why I took note when in late April, Loris and other right-wing energy wonks dropped a set of “consumer-first” proposals on transmission permitting reform geared toward addressing energy demand rising from data center development. So I’m glad Loris was available to lay out his thoughts with me for the newsletter this week.

The following conversation was lightly edited for clarity.

Keep reading...Show less
Yellow
Spotlight

How to Get Away with Murdering an Energy Industry

And future administrations will learn from his extrajudicial success.

Donald Trump and wind turbines.
Heatmap Illustration/Getty Images

President Donald Trump is now effectively blocking any new wind projects in the United States, according to the main renewables trade group, using the federal government’s power over all things air and sky to grind a routine approval process to a screeching halt.

So far, almost everything Trump has done to target the wind energy sector has been defeated in court. His Day 1 executive order against the wind industry was found unconstitutional. Each of his stop work orders trying to shut down wind farms were overruled. Numerous moves by his Interior Department were ruled illegal.

Keep reading...Show less
Yellow