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A conversation with Adib Nasle, CEO of Xendee Corporation

Today’s Q&A is with Adib Nasle, CEO of Xendee Corporation. Xendee is a microgrid software company that advises large power users on how best to distribute energy over small-scale localized power projects. It’s been working with a lot with data centers as of late, trying to provide algorithmic solutions to alleviate some of the electricity pressures involved with such projects.
I wanted to speak with Nasle because I’ve wondered whether there are other ways to reduce data center impacts on local communities besides BYO power. Specifically, I wanted to know whether a more flexible and dynamic approach to balancing large loads on the grid could help reckon with the cost concerns driving opposition to data centers.
Our conversation is abridged and edited slightly for clarity.
So first of all, tell me about your company.
We’re a software company focused on addressing the end-to-end needs of power systems – microgrids. It’s focused on building the economic case for bringing your own power while operating these systems to make sure they’re delivering the benefits that were promised. It’s to make sure the power gap is filled as quickly as possible for the data center, while at the same time bringing the flexibility any business case needs to be able to expand, understand, and adopt technologies while taking advantage of grid opportunities, as well. It speaks to multiple stakeholders: technical stakeholders, financial stakeholders, policy stakeholders, and the owner and operator of a data center.
At what point do you enter the project planning process?
From the very beginning. There’s a site. It needs power. Maybe there is no power available, or the power available from the grid is very limited. How do we fill that gap in a way that has a business case tied to it? Whatever objective the customer has is what we serve, whether it’s cost savings or supply chain issues around lead times, and then the resiliency or emissions goals an organization has as well.
It’s about dealing with the gap between what you need to run your chips and what the utility can give you today. These data center things almost always have back-up systems and are familiar with putting power on site. It must now be continuous. We helped them design that.
With our algorithm, you tell it what the site is, what the load requirements are, and what the technologies you’re interested in are. It designs the optimal power system. What do we need? How much money is it going to take and how long?
The algorithm helps deliver on those cost savings, deliverables, and so forth. It’s a decision support system to get to a solution very, very quickly and with a high level of confidence.
How does a microgrid reduce impacts to the surrounding community?
The data center obviously wants to power as quickly and cheaply as possible. That’s the objective of that facility. At the same time, when you start bringing generation assets in, there are a few things that’ll impact the local community. Usually we have carbon monoxide systems in our homes and it warns us, right? Emissions from these assets become important and there’s a need to introduce technologies in a way that introduces that power gap and the air quality need. Our software helps address the emissions component and the cost component. And there are technologies that are silent. Batteries, technology components that are noise compliant.
From a policy perspective and a fairness perspective, a microgrid – on-site power plant you can put right next to the data center – helps unburden the local grid at a cost of upgrades that has no value to ratepayers other than just meeting the needs of one big customer. That one big customer can produce and store their own power and ratepayers don’t see a massive increase in their costs. It solves a few problems.
What are data centers most focused on right now when it comes to energy use, and how do you help?
I think they’re very focused on the timeframe and how quickly they can get that power gap filled, those permits in.
At the end of the day the conversation is about the utility’s relationship with the community as opposed to the data center’s relationship with the utility. Everything’s being driven by timelines and those timelines are inherently leaning towards on-site power solutions and microgrids.
More and more of these data center operators and owners are going off-grid. They’ll plug into the grid with what’s available but they’re not going to wait.
Do you feel like using a microgrid makes people more supportive of a data center?
Whether the microgrid is serving a hospital or a campus or a data center, it’s an energy system. From a community perspective, if it’s designed carefully and they’re addressing the environmental impact, the microgrid can actually provide shock absorbers to the system. It can be a localized generation source that can bring strength and stability to that local, regional grid when it needs help. This ability to take yourself out of the equation as a big load and run autonomously to heal itself or stabilize from whatever shock it's dealing with, that’s a big benefit to the local community.
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Noise ordinances won’t necessarily stop a multi-resonant whine from permeating the area.
What did you do for Earth Day this year? I spent mine visiting a notoriously loud artificial intelligence campus in Virginia’s Data Center Alley. The experience brought home to me just how big a problem noise can be for the communities adjacent to these tech campuses – and how much further local officials have to go in learning how to deal with them.
The morning of April 22, I jumped into a Toyota Highlander and drove it out to the Vantage VA2 data center campus in Sterling, Virginia, smack dab in the middle of a large residential community. The sensation when I got out of the car was unignorable – imagine an all-encompassing, monotonous whoosh accompanied by a low rumble you can feel in your body. It sounds like a jet engine that never stops running or a household vacuum amplified to 11 running at all hours. It was rainy the day I visited and planes from nearby Dulles International Airport were soaring overhead, but neither sound could remotely eclipse the thudding, multi-resonant hum.
If you want to hear the sound for yourself, this video accurately sums it up.
After parking nearby I walked to one of the residential enclaves adjacent to VA2. One resident of a home across the street, who declined to give me her name, said she moved there before the project was completed. When asked how she felt about the noise, she told me, “It’s not as bad as it could be on the other side [of the data center], where all the equipment is.” (While the sound does get louder on the other side, I could clearly hear VA2 from her driveway.)
VA2’s noise has been causing problems for months, as documented by numerous social media posts, local news clips, and a feature published in Politico. It’s doubtful many of those living near the data center wanted it there. The project was built quite quickly – so quickly that Google Earth still shows undeveloped woodlands on the site. Per public filings, Vantage first proposed the facility in 2022 under the county’s fast-track commercial incentive program, an expedited permitting process for specific preferred industries. It was under construction as recently as October 2024, according to images captured by Google Street View.
Noise is one of the most common issues associated with data centers. At least a third of all conflicts over data centers are over noise complaints, and noise is the number one reason for opposition in cases where projects were ultimately canceled, according to Heatmap Pro data.
This issue goes back almost a decade. In 2019, residents of the Phoenix ex-urb Chandler, Arizona, became irate after a loud monotonous hmmmm began emanating from a CyrusOne data center. In that case, CyrusOne traced the noise back to chilling fans, and the company reduced the sound with muffling devices.
Chandler wound up adopting a new ordinance in 2023 requiring sound mitigation measures to prevent companies from exceeding certain ambient noise levels in the surrounding areas. That did nothing to improve the mood of the people who live there, however. Now Chandler, once known as a potential data center development hub, is now firmly in the anti- camp. The city council unanimously rejected a proposed $2.5 billion data center campus in December over noise concerns, despite an expensive lobbying push backed by former Arizona Senator Kyrsten Sinema.
As data centers spread across the U.S., noise is becoming an ever-more-common complaint. You can hear the familiar hum at a DataOne data center project in Vineland, New Jersey. DataOne told us they “understand concerns about ambient noise in the area” and are operating within the limits of local noise ordinances.
The hum is also in Dowegiac, Michigan, where people living nearby are calling their new Hyperscale Data facility a “noise trap,” with little explanation to date for the issue. Hyperscale Data did not respond to a request for comment.
And the hum is in Mount Pleasant, Wisconsin, where the sound from a new Microsoft data center campus rises above any din from rain. The hyperscaling giant is doing more to mitigate the issue than I’m used to seeing from data center developers, however.
On April 15, the company published an update on its own internal investigations into noise complaints. “Although the facility noise levels meet the requirements set by local ordinance, we take this feedback seriously and understand the impact this has had on our neighbors,” the update read. “We anticipated that our systems would need adjustments and create some noise as part of the datacenter startup, but we did not expect the tonal quality of the sound to travel as far as it has.”
To address the noise, Microsoft said it was “manually adjusting the cooling fans” to reduce noise, and that “we expect this change to address community concerns about the tonal humming.” On top of that, the company said it will install “additional sound reduction components” to “provide even further reductions in measured sound levels.” A Microsoft spokesperson told me in an email: “We’ve identified the source of the noise concerns and have implemented changes to significantly reduce sound from our facility.”
It isn’t cooling fans causing the noise at Vantage’s VA2 in Virginia, however. The sound, according to media reports, is coming from gas turbines powering the data center.
VA2 is one of the first in Virginia to function entirely off-grid, a design companies are adopting in order to avoid lengthy grid connection processes. Company spokesman Mark Freeman told me the facility is “fully compliant with all local noise ordinances, and this has been verified by third-party sound studies.”
“Additionally, in line with our commitment, we are actively working with third-party engineers to explore additional sound mitigation options,” Freeman continued. Freeman said “Our goal is to further reduce noise levels where possible and continue to foster a positive environment for everyone.”
Here’s the thing, though: I visited the Vantage campus after initially hearing from the company, and it was loud. Very loud.
I did not bring a decibel meter with me, so I cannot know whether they were operating within legal limits that day. What I do know is that noise ordinances struggle to properly capture sounds in multiple frequency ranges, making high and low frequencies challenging to regulate, according to the Environmental and Energy Study Institute, a bipartisan non-profit think tank. Officials representing Loudon County, where VA2 is located, have acknowledged that the local ordinance may need to change in order to address the most distressing frequencies from the data center campus.
“We can change the zoning ordinance and noise ordinance,” Loudon County supervisor Mike Turner told local TV station WUSA9 last week. “Noise can be mitigated. I just don’t believe that the noise problem cannot be solved.”
I wrote Freeman, the Vantage spokesman, to tell him I had visited the VA2 campus and found the noise to be “quite foul.” He replied soon after, telling me that Vantage is going “above and beyond what is required in order to address concerns from nearby residents.” The company is using “targeted enhancements to turbine-related equipment such as dampening equipment, enclosure inlets and enclosure exhausts.” These measures “represent meaningful progress and will help us better evaluate the effectiveness of the broader solutions under consideration.” Freeman also said the company is “actively assessing additional options” focused on “targeted frequency ranges.”
As we continue to track local regulation of data centers, I’m we’ll see many more cases like VA2, in which obtrusive sound prompts forms of regulation we may have never seen before.
Or, people will just hear these noises and say no to more data centers.
Plus more of the week’s biggest project development fights.
New Jersey – Crucial transmission for future offshore wind energy in New Jersey is scrapped for now.
Montgomery County, Alabama – A statewide solar farm ban is dead for now after being blocked by lawmakers who had already reduced its scope.
Doña Ana County, New Mexico – The Federal Energy Regulatory Commission wants to move faster on data center power infrastructure, but at least one energy project for a major hyperscaler is trapped in internal conflicts.
Hawkins County, Tennessee – A local free-market nonprofit is suing this county in federal court to argue data center bans are unconstitutional.
Mingo County, West Virginia – Speaking of federal data center cases, West Virginia regulators will now be forced to testify in the legal challenge against a large hyperscaler in the heart of coal country.
Will County, Illinois – This county reversed several solar project rejections, but it didn’t do so happily.
King County, Washington – Seattle might be the next major city to ban data centers.
Chatting with the Mid-Atlantic Renewable Energy Coalition’s Evan Vaughan.
This week’s conversation is with Evan Vaughan, executive director of the Mid-Atlantic Renewable Energy Coalition. The trade group is at the center of things right now, representing many of the 13 states in the PJM Interconnection region, including power-hungry Virginia. MAREC reached out to me so we could talk about how it sees various energy trends, from the rise of a new transmission build-out to the resilience of renewable energy in the Trump 2.0 era.
The following conversation was lightly edited for clarity.
So where does your membership stand as the Inflation Reduction Act starts to fade into the distance?
The momentum we’ve seen coming out of the Inflation Reduction Act has largely kept pace up until this point. We’re entering into a little bit of unknown territory going forward given that tax credits are phasing out their primary eligibility by July, and we have some significant PJM milestones coming up, including the first post-transition cluster study happening with allocations due in April. In some ways, that first post-transition cluster is going to be really indicative of what direction we see the future energy mix shaping up like in PJM going forward. It’s an interesting time to have this conversation because we’re at such an inflection point.
How much is local siting conflict holding up development?
Local siting challenges are a big problem for getting new generation onto the grid, and it’s not just a wind and solar issue. It’s any generation source. It often gets couched as a wind and solar issue because that’s been the vast majority of the megawatts coming out of the PJM queue over the last five years or so. Even with that being said, there’s been local opposition with the Chesterfield gas plant in Virginia, too.
If you watch what PJM says about the state of their queue, they rightly point out that they’ve processed a number of queue applications, almost cleared out the backlog from their queue transition, and point out supply chain and siting issues for projects once they’ve exited the queue.
The PJM queue is a conveyor belt heading into a volcano. Projects, when they get to the end, they either encounter issues like local denials of their permits, or supply chain issues, or increasingly, interconnection cost challenges, in which case they fall into the volcano. Of those three issues, local siting is the one most readily apparent today.
I still think it’s a sleeper issue for politicians and the general public because there’s confusion over who holds the authority over our electricity generation future. Obviously PJM holds a lot of levers, and the states have a lot of power, and federal policy matters. But in the end, whether there’s enough generation to meet that demand comes down to thousands of local officials across PJM’s 13 states making enough “yes” decisions to make sure we have enough megawatts in place to keep the lights on.
Last week I wrote a feature on transmission development in the PJM region, the need for more wires on the grid, and conflicts over those projects. From your vantage point, how are these conflicts going to be resolved? Is it with local decision-making? Or does some of this interstate tension need to be fixed in other ways?
It’s not the local governments that are the bad guys here. It’s that they have a decision-making framework mismatch from what they care about – valid local issues – and the electricity supply-demand balance. If the lights go off or bills continue to rise and someone in the political realm loses their job, the average voter isn’t going to blame the local government. They’ll blame the state and broader government for these issues.
There’s a real problem with the storytelling aspect of transmission. I’m really optimistic as states come together around FERC’s order 1920, which is finally getting to the implementation stage, as the PJM region will be the first to file a complete planning and cost-allocation filing with the commission. The vision of 1920 is to create more state input with how lines are planned. That’ll hopefully provide some relief to the transmission controversies.
Do you think that whack-a-mole approach is why we’re seeing the level of tension we are on the ground over transmission?
Yes.
Well, that’s a simple answer.
I can elaborate. Essentially, the way transmission is planned is that reliability faults pop up on the system, PJM’s engineers identify faults, and then they identify the kinds of upgrades needed to address faults. It’s a backwards-looking process. It’s not tangible to an everyday person.
Starting from where we want to go in terms of state needs for energy generation and then asking people for input is a much better way to get public buy-in and reduce opposition.
What is the biggest issue that’s top of mind for MAREC?
I worry that for all the activity happening at the state level, the PJM level, and the federal level to try and address the supply-demand imbalance on the grid, it is mostly not adding up to a picture resulting in more generation coming online at the scale we need.
Many of the solutions proposed tend to miss some of the fundamental needs of businesses to draw them to invest in a new generation resource. Many of the solutions being worked on at the states and PJM level are trying to address an urgent near-term need, but what we see is all the changes are actually being disruptive in and of themselves.
What in this moment gives you hope? What makes you optimistic about the future?
I think we are still seeing a huge amount of enthusiasm from our member companies to invest in the PJM region, even with all the headwinds we have. It speaks to a fundamental value that our resources – wind, solar and storage – provide to the grid.