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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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Talking about the data center backlash, the midterm elections, and the future of renewables with Columbia Law School’s Romany Webb.
This week’s conversation is a quick catch-up with our friends at Columbia Law School’s Sabin Center for Climate Change Law. I hopped on the phone with the center’s deputy director Romany Webb to chat about recent updates they published to anti-renewables opposition analysis. I wanted to dig into their research beyond the toplines — what should people care about in the coming election? How have data centers come up in their research? Or the repeal of the Inflation Reduction Act?
The following conversation was lightly edited for clarity.
Let’s start with the updates. Walk me through what’s new in your research.
So, we published two-year reports that detail renewable energy opposition across the United States; one is our report we’ve published since 2021 and it’s a new edition, and the other is an update of a report we published a few years ago on false claims about renewable energy where we highlight the misinformed used against projects.
This year’s local opposition report found local opposition continues to be widespread and really endemic. There’s been opposition to renewable energy development in every state across the country and we’re seeing it still have a real impact on whether projects get built. But there are small glimmers of hope. We identified 70 new state and local restrictions, which was a decline from previous years — that’s notable.
In select states where there have been a lot of these local restrictions, we’ve seen a drop off, like in Michigan after they enacted their state siting law. These are encouraging signs, and obviously it’s still early days, but it shows some of these state reforms are having a positive impact.
How is data center opposition coming up in your research?
Our reports do not track opposition to data center development. But we do certainly hear anecdotally that debates over data center development are spilling over into debates over renewable energy and battery storage. Often, local communities express concern that these new projects are just being built to power data centers — in some cases when there’s no connection at all, really. But I don’t have data on that link.
You said the law Michigan enacted might be working. Do you know if these laws limiting local opposition actually help with fighting renewable energy opponents, or are they engendering their own backlashes that undermine their effectiveness?
I think it’s too early to say the impacts they’ll have over the medium to long term. In the near term, many of the laws have been successful in accelerating the permitting of renewable energy projects or making it easier for them to be approved. Recent data out of New York shows that many of the projects that have gone through the new siting process are being approved — they’re still fairly long but they’re consistent which is good for development. In other places we’ve seen efforts to limit local government’s ability to adopt restrictions on renewable energy development, like Illinois and Michigan.
Those laws are relatively new, but the data we have shows that drop-off. It suggests the intended effect. But we need more time to know how effective they are and some of those laws have been getting quite a bit of pushback. There’s been a myriad of bills enacted in state legislatures across the country that would roll back those recent reforms or impose new restrictions on renewable development.
How much does the coming midterm election matter for the future of opposition to renewable energy?
I do think the next election will have important implications on whether we continue to see the ever-growing number of state level restrictions adopted or if we see a shift there.
Even if we see a shift in the composition of legislatures, I do think we’ll continue to see community opposition in many places to these projects. We shouldn’t ignore that developing a solar or wind project does have impacts on the local community and so developers really need to take steps to mitigate and manage those impacts.
If they don’t they’ll face the opposition, and even if they are they may face it because of misinformation around these projects.
My last question is, to what extent did the repeal of the IRA impact the ability for local opposition to kill projects in the crib?
I can’t say that definitively. I certainly don’t have the data that would support that sort of claim. And we don’t track that, specifically.
But often, groups that are opposed to renewable energy development will express concerns about the costs of projects or emphasize projects may not be viable without government subsidies. So the rollback of tax credits under the IRA plays into that argument. Of course when you look at the data, renewable energy projects are cheaper and the argument doesn’t hold muster.
But it’s an argument we regularly see pushed by opposition groups. That is how we have seen the IRA repeal affect this.
A developer sues an Arkansas paper, plus more of the week’s biggest development fights.
1. Pulaski County, Arkansas – A major utility sued the biggest newspaper in Arkansas over reporting on a data center energy deal. It’s a crucial case to follow.
2. Lackawanna County, Pennsylvania – Speaking of hardcore legal strategies, have you ever heard of a data center developer asking every local official to recuse themselves?
3. Loudon County, Virginia – Data Center Alley is giving us our first real glimpse of what data center legislating could look like if Democrats control at least one chamber of Congress.
4. Lane County, Oregon – The second largest city in Oregon is now turning down data centers, just as the governor starts saying no to anything on state land.
What we’ll be watching for on election night.
It’s almost fall 2026 and you know what means: It’s time to figure out the must-watch midterm races amidst the data center backlash.
I’ve spent the past week pulling together a list of the top five congressional races worth watching as bellwethers for the impacts of the data center backlash in the American electorate. This list has three U.S. House races where Republicans are defending seats, one where a House Democrat is defending their seat, and the Senate race many of you are probably most thinking about anyway. Think of it as a tipsheet.
Before we begin, a crucial theme I picked up reviewing the data: The AI infrastructure backlash will almost assuredly be most painful for sitting House Republicans crucial to deciding the future of the lower chamber of Congress.
Very few House Democrats are defending seats in challenging contests. As I’ll explain, at least one of the elected Democrats that would otherwise be most vulnerable in this year’s election cycle — Rep. Marcy Kaptur in Ohio — has already positioned themselves way out ahead on this issue. This means what we’re left with is simply a long list of incumbent GOP lawmakers with votes supporting data centers that newcomer challengers can call out. My best anecdotal comparison in recent history is anger over Covid-19 school closures helping oust incumbent Democrats in Virginia way back in 2021, but expanded to a national scale.
House races strike a balance between nationalized issues (gas prices, federal AI support) and local fights over land use and nearby resource draws like water or power, so this shouldn’t be a surprise. But it is a pivotal trend to remember as we approach Election Day.
The most important data center-centric race for Congress is a rare case where it’s also the one receiving the most media attention: Will Lawrence, a Democrat, versus Republican CongressmanTom Barrett.
To quickly set the scene, this race is happening in Michigan’s 7th District — an agriculture-heavy area of central Michigan I personally know quite well because of its proximity to the college town of Lansing. The district includes what Heatmap Pro clearly shows are multiple challenging areas for any sort of large-scale AI or energy infrastructure, including both Ingham and Clinton County.
Enter Will Lawrence, a cofounder of the Sunrise Movement, who made data center opposition core to his campaign by backing a federal moratorium in early 2026. It was the first issue he highlighted in primary campaign ads and many credit the stance for his surprise upset victory over establishment favorite and former Navy SEAL Matt Maasdam. This week, Democratic gubernatorial candidate Jocelyn Benson backed a statewide moratorium on new projects if she won. It’s hard to think that would ever happen without Lawrence’s victory.
Lawrence’s incumbent opponent is Rep. Tom Barrett, who over this summer introduced two bills signaling a more aggressive stance on the issue — one that would block federal agencies from overriding local zoning decisions and another banning members of Congress from signing NDAs related to data centers. I do not think these bills will do much on the campaign trail to help him; neither one would actually stop any data centers in Michigan or elsewhere, as both policies address hypothetical cases we’ve not seen before.
Cook Political Report scores this race as a Toss-Up.
In Pennsylvania, you’ll find a race pivotal for control of Congress — and future Republican responses to the data center backlash writ large.
When it comes to the GOP members responding earnestly to the backlash against data centers, you can’t find a better example than Rep. Rob Bresnahan Jr., who represents the Keystone State’s 8th congressional district. This area in Pennsylvania’s northeast corner is filled with traditionally moderate suburbs as well as current and former fossil fuel industry communities. Bresnahan won his seat in the last election cycle, defeating former Democratic Rep. Matt Cartwright, an elected official I best knew as one of the biggest champions in Congress for cleaning up former gas and mine developments areas.
Bresnahan Jr. is running against Paige Cognetti, the Democratic mayor of Scranton, who is running ads comparing data centers to the legacy of unremediated fossil fuel projects. It’s a clear ploy to use data centers as a signal to voters this newly elected Republican could be straying away from what used to be the norm for the area’s representative in the U.S. House.
“Big companies have come before, taken what they wanted, and left us with their mess to clean up. Now its data centers,” states one Cognetti ad released last month.
Unlike other Republicans in Congress facing data center scrutiny, this GOP freshman acted quickly to introduce legislation supporting communities fighting data centers. In June, Bresnahan put forward a bill that would block federal agencies from permitting new data centers if they were rejected by their host local governments and enjoin federal legal action against towns or counties that deny data centers if they met certain standards for the rejection. It’s a far more aggressive stance than Trump’s Ratepayer Protection Pledge and marks one of the most significant anti-data center bills ever introduced into Congress.
Cook Political Report scores this race as a Toss-Up.
Can an incumbent Democrat protect herself in one of the reddest congressional districts in the country by railing against data centers?
Rep. Marcy Kaptur is someone whose profile I know quite well because she was the first member of Congress I ever interviewed back in 2017. For many years, she’s represented a district on the rim of Lake Erie, and she’s long been the top Democrat on the House Energy-Water Appropriations Subcommittee. In her district, she’s best known for portraying herself as a tooth-and-nail fighter for union labor in a blue collar Ohio congressional district often redrawn by the state’s GOP leadership to be harder each and every cycle. Thanks to her policy chops and moderate positions on other issues, she keeps beating the odds every election, kind of like a Democratic answer to Susan Collins.
This year, Kaptur’s seat is one of the most important for Democrats to defend in the midterms to regain control of the lower chamber. She clearly believes her opponent, State Rep. Derrick Merrin, has a potential political liability in a 2017 vote for data center tax breaks in Ohio. So she’s been making great hay of this issue for a while.
“Will our building trades be true partners in economic growth or temporary labor while facing higher utility bills at home?” Kaptur said on the House floor last December, long before the backlash to AI hyperscalers was a national conversation.
Should Kaptur win with this strategy, and if Democrats retake the House, I expect she will suddenly become one of the most important members in Congress on data center policy thanks to her subcommittee slot.
Cook Political Report scores this race as a Toss-Up.
On Election Night this November, I’ll be watching this race most closely to know if it’ll be an early night — and whether the entire data center sector’s in for a world of hurt.
This Richmond-area congressional brawl is between a historically overperforming incumbent in Rob Wittman, a five term Republican elected in the Bush era, and Henrico County prosecutor Shannon Taylor, a Democrat who won her primary earlier this year over a candidate that supported a federal data center moratorium. Taylor is still critical of the data center sector though, focusing on fighting any increased water and energy cost from facility operations.
Wittman has said voters have “legitimate concerns” about data centers and cosponsored the House version of the Ratepayer Protection Act, which would codify Trump’s pledge into law. Asked this week whether he’d support a data center moratorium, Wittman pivoted to the bill he backed instead. “I support putting guardrails on these data centers. Ultimately, these are local decisions and decisions of states,” he told a local ABC affiliate, adding he also wants to see facilities reduce water use. Wittman concluded, “Ultimately, it’ll be a local decision, but yes there is a federal role for that.”
Between their shared skepticism of a national data center moratorium and wanting companies to pay for what they build, there doesn’t seem to be much difference between the two candidates’ positions.. So where’s the contrast?
The difference is in the attack ads. The Democratic Congressional Campaign Committee is making data centers a key part of this contest among many others, calling on allied political action committees to specifically make negative ads in Richmond and Norfolk media markets calling out past support for data center tax breaks. Unlike Wittman, Taylor has no tangible record of past support for these projects like explicit statutory support. So on Election Night, because Virginia closes voting early, this race will be my must-watch contest to know how dire not only Republicans’ chances are but more importantly, the data center sector.
Cook Political Report rates it Lean R, noting Wittman has a history of “overperforming politically.” Abigail Spanberger won the district last year.
I only picked one Senate race for this list, because like Virginia’s 1st, the fortunes of the data center sector in this election cycle clearly ride on the Texas Senate race.
Sure, the Lone Star gubernatorial is just as important. Yes, other Senate races are positioned around data centers, like Sherrod Brown vs. Sen. Jon Husted in Ohio and Abdul El-Sayed vs. Mike Rogers in Michigan. But no other contest is as clear of a bellwether for the entire midterm election because Texas is the data center destination in the nation.
On policy, Talarico is running on the mean average anti-data center stance: requiring companies to pay for what they need. It’s fairly boilerplate. Meanwhile, Paxton’s plan is a hodgepodge: it leans heavily on support for Gov. Greg Abbott’s clampdown-in-progress on the industry. He also calls for banning Chinese technology from being used in American data centers or to power them and says he’d support legislation speeding up permits for power to AI hyperscalers.
At the Republican Party convention in Texas this week, Paxton voiced support in an interview with Bloomberg TV for Abbott slowing down development in the state. He also said the country needed data centers because “if we don’t have data centers, we’re going to have trouble with China.” Asked whether he’d support legislation in the Senate that would put “restrictions” on data center development, Paxton offered a confusing answer that refused to say yes or no.
“There’s no bill, obviously, so it’s a hypothe– that’s so — I don’t know what the bill’s going to look like. You could have a data center [bill] drafted one thousand different ways. I would have to look at the bill and then I’d go back to my constituents and say hey, does this address what you’re worried about?” he said.
There’s a good reason reporters are asking. Earlier this year, a Washington Star report highlighted that Hood County requested Ken Paxton as attorney general intervene against a data center development and he did not respond. The issue became a serious campaign spat this past week, too, with Talarico telling CBS News he “just ghosted” the county.
Unlike Virginia, we haven’t seen the data center attack ads pop up… yet. If what’s happening elsewhere in the country is a prologue, I expect them to. Cook Political Report rates this race a Toss-Up and recently polling from their outfit found collapsing GOP support amongst Hispanic voters in the state.