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It’s not just Trump.

State legislatures are now a crucial battleground for the future of renewable energy, as Republican lawmakers seek massive restrictions and punitive measures on new solar and wind projects.
Once a hyperlocal affair, the campaign to curtail renewable energy development now includes state-wide setbacks, regulations, and taxes curtailing wind and solar power. As we previously reported, Oklahoma is one of those states – and may as soon as this year enact mandatory setback requirements on wind power facilities, despite getting nearly half its electricity from wind farms. According to a Heatmap Pro analysis, these rules would affect 65 of Oklahoma’s 77 counties.
Oklahoma is far from alone in potentially restricting land use. In Arizona, the State House last month passed legislation that according to one analysis would lock wind developers off more than 90% of all land in the state. Roughly half of the remaining available acreage would be on Native tribal lands and in or near national parks, which are especially tough areas to build wind turbines. The bill is currently pending before the state Senate. There isn’t much wind energy in Arizona but utilities, who’ve been mostly mum on the legislation so far, have been trying to build more wind and solar in order to wean off coal and gas power. Unfortunately, according to the Arizona Republic, this legislation was reportedly prompted by the backlash to a specific new wind project: Lava Run, a 500-megawatt wind project in the state’s White Mountains opposed by nearby residents.
When asked if the project would ultimately be built, Repsol – Lava Run’s developer – simply told me the company “believes that wind energy in Arizona represents an opportunity to benefit local communities and the state as a whole.”
Republican states have passed legislation to restrict renewables development in certain areas before, so this isn’t exactly a novel development. Florida last year banned all offshore wind projects, and in Ohio, a recent law empowering localities to block solar and wind projects has significantly curtailed industry investment in the state. Wisconsin Republicans are trying to enact similar legislation as soon as this year.
But the sweeping quickness of this legislative effort is striking – and transcends land use rules. Elsewhere, development restrictions may come in the form of tax increases, like in Idaho where the chief revenue committee in the state House has unanimously approved legislation that would institute a per-foot excise tax on individual wind turbines taller than 100 feet without local approval. (The average wind turbine is 320-feet tall.) In Missouri, Republican state legislators are advancing legislation that would create additional taxes for building solar projects on agricultural land, a proposal that echoes an effort underway in the U.S. Congress to strip tax benefits from such projects. And Ohio Republicans have introduced plans to axe all existing state subsidies for solar project construction and operation.
Then there’s the situation in Texas, where state Republican lawmakers are expected to revive a bill requiring solar and wind projects to get express approval from the Public Utilities Commission – a process that fossil fuel projects do not have to go through. The state is the nation’s top producer of renewable energy, generating over 169,000 gigawatt-hours last year.
The legislation passed one legislative chamber in the previous session and environmental activists are starting to sound the alarm that it could get even greater traction this go-around. Luke Metzger, executive director of Environment America’s Texas division, told me that if it becomes law, it would likely undermine investor confidence in developing solar and wind in Texas for the foreseeable future. “It’s very unclear if they could get a permit” under the bill, Metzger said. “If some wealthy Texans didn’t want a solar farm near their ranch, they could convince the PUC to reject their permit.”
Metzger said he is also worried that Texas acting to restrict renewables would produce similar regulation in other parts of the country given the state’s legacy role as a conservative policy braintrust.
“You could have this ripple effect that could end the industry,” Metzger said, “at least in several other states.”
The aggressive and rapid approach sweeping state legislatures has yet to get a national spotlight, so I'm curious how the renewables trade groups are handling these bills.
I asked American Clean Power and the Solar Energy Industries Association if they have any data on the rise of anti-renewables legislation and whether they have comments on this trend. Neither organization responded with data on how many states may soon pass renewables restrictions, but they did get back to me quite fast with comments. SEIA provided a statement from Sarah Birmingham, their vice president of state affairs, noting that energy demand “is rising across the country and we need all the electricity we can get, fast.” The group also pointed to polling it commissioned on solar energy popularity in Texas and a report it just happened to release in January touting the benefits solar can provide to the state’s revenue base.
ACP meanwhile provided me with a similar statement to SEIA’s, defending renewables and criticizing state bills restricting solar and wind project development.
“Reducing their growth at state and local levels stifles innovation, raises consumer energy costs, and hinders a cleaner, more reliable grid, leaving communities vulnerable to energy shortages,” said spokesman Jason Ryan.
It’s clear some legislators agree with ACP. In Montana, legislation targeting wind turbine height is stuttering after a large cadre of industry representatives and property owners complained it would kill development entirely and kneecap tax revenue to the sparsely populated state. And in Mississippi, lawmakers appear to have abandoned efforts to enact a one-year moratorium on wind turbines for a study on the industry’s impacts on agriculture.
But it’s only March. I guess we’ll have to wait and see how aggressive – and how public – the fight over these bills this year will become.
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What would happen to Project Jupiter if the Bipartisan American Affordability and Jobs Act is passed?
One of the nation’s largest data centers is struggling under permitting woes. So let’s play a game: would the bipartisan permitting bill in Congress make the path easier, or might the federal legislation be irrelevant to large hyperscalers under development today?
Meet Project Jupiter, a mega project in southern New Mexico in Dona Ana County under development by Oracle and OpenAI, with financial backing from SoftBank and political support from the Trump administration for being a part of Stargate, a major Trump administration public-private initiative boosting AI development. Project Jupiter would be one of the largest data centers in the country if completed and currently is expected to run on a microgrid powered by fuel cells converting gas to electricity, which the developers claim will burn much cleaner than a typical off-grid gas turbine power plant.
Solving the energy side of the equation is a major hurdle for Jupiter, largely because of permitting delays and legal challenges.
In mid-September, the New Mexico Supreme Court lifted a stay it placed on consideration of the project’s state air permitting application. But on Wednesday, the Santa Fe New Mexican published emails between the New Mexico Environment Department and Project Jupiter staff detailing that independent emissions modeling showed pollution would be greater than predicted by the developers, after they had already requested permission to emit more CO2 than the state’s three largest cities combined. A final decision on the air permit was expected in November; the emails suggest the deadline may slip further. After the emails were reported, Oracle declared it would try to reduce emissions from the site by more than 30%.
At the same time, the New Mexico Justice Department is opposing the Federal Energy Regulatory Commission’s environmental assessment under the National Environmental Policy Act for a gas pipeline key to powering the project. The state’s attorneys assert the agency improperly failed to examine how the data center’s use of the pipeline would affect the environment. This week, a dozen GOP attorneys general representing states with large gas industries wrote FERC insisting they ignore the state’s protests, arguing that a recent Supreme Court ruling – known colloquially as Seven County – meant the federal government doesn’t need to look at the data centers gas pipelines are feeding when the lines are reviewed. Oracle has declared a “force majeure” over the pipeline delay. Rumors have circulated that trucks may just bring gas in for operations; company representatives told the Dona Ana County Commission this week those claims were “misinformation.”
Amidst these delays and potential legal conflicts, I’ve sought to understand whether projects like these – large data centers racing to operate within the next year or two – would be affected by enactment of the Bipartisan American Affordability and Jobs Act of 2026, a major permitting reform deal negotiated in part by New Mexico’s senior senator, Energy and Natural Resources chairman Martin Heinrich.
In Washington D.C., this legislation is exciting many constituencies, including energy industry types, policy wonks, business-friendly climate advocates. At the same time, more conservation-minded environmental groups opposed to provisions benefiting the fossil fuel industry are leaning into an argument that the legislation would accelerate a new era of gas-dominant data center construction.
Last week, I wrote about the environmentalists’ argument. I also examined the parts of the bill unlocking a new transmission build-out and requiring data center ratepayer protection. If enacted, FERC would have to require utilities to charge data centers not only for the costs of new grid upgrades but the charges incurred for using the grid, too. As my colleague Robinson Meyer has written, by forcing AI infrastructure operators to pay for both embedded and incremental energy costs, the legislation would essentially mean data centers paying both to reduce rates and build new energy generation. We’re seeing in real time what happens when you don’t deal with the transmission connection system while building new grid upgrades: companies will often opt to just build their own private off-grid fossil fuel islands. In Texas, for example, we’re seeing transmission hook-up delays lead to companies just building their own gas plants instead. This is not to say companies won’t still go off the grid if this bill passes, but it’s a serious consequence of our dilapidated energy system worth considering.
So I decided to evaluate Project Jupiter as a test case. How might the permitting bill affect this project and other big data centers at a stage like it?
For starters, let's say what the permitting bill does not do. It wouldn’t change the Clean Air Act. Project Jupiter would be one of the largest data centers in the country if completed, as well as potentially one of the nation’s biggest CO2 emitters if permitted as proposed. Nothing in the bill would affect requirements that the project adhere to national air emissions standards, so it wouldn’t affect the New Mexico Environment Department’s pending decision around the project’s air permits.
Enacting BAAJA could potentially affect this sprawling data center project in extremely hypothetical ways. It would reduce legal risks associated with future interstate gas pipelines under development expected to potentially branch out to Project Jupiter, including the Desert Southwest Expansion pipeline. It’s easy to understand in the words of Robert Pattinson in Primetime how this looks: like an easier path to expanding gas generation in this area.
On renewables, the bipartisan permitting deal would codify new permitting certainty and timeline provisions that claim to make it easier for companies to pursue solar development on federal acreage managed by the Bureau of Land Management. Project Jupiter just concluded a request for proposals to procure two gigawatts of renewable energy including solar power to meet the developers’ pledge to achieve 100% carbon matching by 2031 and Thiagarajan previously told the commission they’ve examined potentially getting energy from solar projects nearby on BLM lands.
But all of this is too theoretical and the case for any individual early-stage energy project too. Not to mention that we have no idea how the Trump administration would implement this certainty language, even for Project Jupiter.
To me, if people want to earnestly understand how the bipartisan permitting bill might actually affect data centers, they need to fully consider how making it easier and more transparent to hook up to the existing electric grid could reduce how much on-site gas generation is used at AI data center operations.
Delays in state permitting for the off-grid fuel cell plant have led Project Jupiter’s developers to consider what turning to the power grid would look like. In early September during a Dona Ana County commission meeting, Oracle executive vice president Mahest Thiagarajan told the panel, “If we end up in a situation where the air permit is not actually approved, I do have to work with a grid provider. Whether it is actually part of the grid or they built the grid for me could be TBD.”
“It doesn’t need to be on the grid, but I need [a] source of power to help power the data center,” Thiagarajan said.
Commission chair Manuel Sanchez replied that the microgrid plans were established in their community benefit agreement but he supported proposals requiring data center developers paying for upgrades and directly paying to reduce electricity rates for nearby residents. “It’s actually provided a downward pressure on rates,” Sanchez said, referring directly to such a policy created by the Georgia Public Service Commission.
Thiagarajan agreed. “My current plan is to continue to work with NMED [the New Mexico Environment Division] and get the off-grid site. If for any reason we have to, because I don’t have the air permit and I have to build the site, I strongly believe it has to come with me bringing down pressure to the rates. Period. I don’t think that’s a question of, I’m not increasing the rates. I actually have to come in and say, I am lowering the rates here.”
If Congress enacted this permitting bill in the lame duck, would Project Jupiter ditch plans to be off grid? It’s challenging to prove or disprove such a hypothetical. Representatives for the project did not respond to requests for comment. But we know any attempts at grid hookups without greater ratepayer protections are only leading to more conflict locally; this week, when Project Jupiter tried proposing a hook up to the grid for emergency power, the county commission fumed. Right now, the plan is still to power Project Jupiter with the gas fuel cell generation on site.
As I concluded this research, I noticed Heinrich’s office has actually promoted news coverage about what his efforts to enact data center ratepayer protections would do to Project Jupiter.
In early August, as the Senate was leaving for a summer recess, his office republished a Santa Fe New Mexican article about legislation the senator authored – the GRID Savings Act – and its potential impact on Project Jupiter. The article claimed that if Project Jupiter was unable to get its air permit, they’d be able to get power a different way under his proposal. The local news outlet also quoted an email from Sanchez, the county commission chair, stating that Heinrich’s bill “could be an avenue for Project Jupiter to fulfill their requirements if the air permit is denied.” Sanchez did not respond to requests for comment.
So I asked Senator Heinrich’s office for comment about this republished article, as well as if his permitting deal would indeed help ensure Project Jupiter was completed and came online. To conclude this story, here is their full statement:
The Senator has been clear that building big things responsibly means putting communities first. As he stated in his interview with the Albuquerque Journal, Project Jupiter botched community engagement from the start.
BAAJA is about making sure we build the energy infrastructure we need while keeping costs down for families and small businesses in New Mexico and across the country. The legislation would help get new energy generation, primarily clean energy, on the grid. By getting the energy onto the grid, states like New Mexico, which has enacted the Energy Transition Act, can continue working to ensure the energy powering our grid is increasingly clean.
The Senator has fought to ensure that growing energy demand doesn’t come at the expense of New Mexicans’ electricity bills by requiring data centers to pay for all of their associated transmission costs, rather than those costs shifting onto ratepayers. Ultimately, the Senator strongly believes that any major development, including data centers, should come as a benefit to the communities that host them, not a burden — and that starts with meaningful community engagement and real benefits for New Mexicans.
To be clear, BAAJA is federal legislation focused on energy infrastructure and grid connectivity. It does not ‘permit’ data centers. State and local government approval is still required. The Senator's legislation addresses the federal energy infrastructure challenges associated with a grid that cannot keep up with demand; it does not circumvent the state and local processes that determine whether Project Jupiter moves forward.
Media representatives for Project Jupiter did not respond to requests for comment.
And more of the week’s top news around project fights.
1. New England (and Maryland) – The Trump administration is still messing with offshore wind farms, even while trying to pass a permitting reform deal. Examining the court filings reveals why they may feel empowered to do it — and I’m not sure how this ends.
2. Columbia County, N.Y. – New York’s renewable energy permitting office has rejected an upstate solar farm on farmland as a House Democrat representing the area joined hands with the Trump administration in publicly railing against the project.
3. Cumberland County, N.J. – The Vineland data center project is impacting the sector’s reputation in the Garden State.
4. Hood County, Texas – It looks like this corner of Hill Country is going back to court over a data center.
A conversation with Harmol Samra of Host Digital
This week’s conversation is with Harmol Samra, CEO of data center developer Host Digital. I asked Samra for a conversation because his team expressed a willingness to offer candid views on the industry’s problems with social license to operate — namely, why is the industry botching this so badly? From his point of view, many could learn a lot from industrial revolutions of the past, and they should be careful not to let mega-project expansions get in the way of broader acceptance of the data center sector.
The following conversation was lightly edited for clarity.
Can you start with your experience right now trying to get permission to build and operate data centers in the U.S.?
What we do is we focus on data centers between 20 megawatts and 100 megawatts — we call them “right-sized” — that are currently energized and delivering in the next 10 to 14 months. So really focusing on the front end of that curve. To your question of social license, we’re focused on building the right-sized data centers that communities are used to seeing and have been seeing for the last 20 years. Very similar to any other industrial warehouse you would see in your community in a business park or things like that. We’re not building multi-gigawatt campuses in a community that has 20,000 people and has an overarching, overbearing impact.
On the social license piece of it, we understand that this is the base layer of infrastructure we’re building. We’re providing the base layer as long as we agree that we all want to store our data for cloud usage, we do need to train our models, we all want to interact with AI and have some imprint — that’s what we support.
On the community benefits piece, we don’t ask for any tax breaks or incentives anywhere we go. In fact, we do the opposite — in most cases we set up community benefits programs. Our data center might become operational in a year, and that’ll pay real estate taxes, but what about in between now and then? In instances, it’s been a new AI training program in high school. In other instances, it has been [people saying], “AI’s great, but using it is expensive, so what if we could provide tokens so students can learn?”
Can you give us an example of a time you were challenged in developing data center infrastructure? Help us get a better understanding of how you’ve faced this backlash yourself.
Our first site in northeast Oklahoma, in Tulsa, enacted a moratorium on data centers after we purchased a site and were going through our leasing and financing process for it. It was a bitcoin mining site we were converting to a data center, in this case. We went to engage with the community, with the city planning office, and with the city council members. Unanimously, by 9-0, we got an exemption [from their moratorium] for us to be able to go build their data center.
When we went and made our case, what we are doing in our strategy was retrofitting this site. Not really adding new load to the system. They said, “The moratorium was not put in place to capture developments like you.” It was put in place for the mega campuses. It was about walking them through our strategy with a site that has been drawing power for the past few years.
Do you feel retrofitting sites changes the perspectives of local officials?
Yes it does, because there are a couple of things you can address up front. We’re not asking for new load; 55 megawatts has been drawn to the site for the past few years. The building we’re converting has been there for years. It calms people’s fears about a new data center coming. It’s just a building that has its computers.
It becomes easier and more bite-sized to digest. Now, obviously there are no gigawatt-scale things you can retrofit.
What do you think other energy sectors can teach the data center sector from their experiences dealing with backlash?
Overarching, as an industry, we have to be net positive to a community.
Other energy sectors and players have worked with their actual impacts to the climate and to the community, and that’s what we have to learn. If you build a data center, what is the social benefit? Through jobs? Through revenue? Through infrastructure they need? It’s the point we need to hammer home.
What do you think of some of the strategies raised thus far to improve community benefits? I’ve heard some new ideas like data center dividends, and I wonder what you make of all the proposals floating out there.
One idea is tax offsets.
Let’s say you’re going to build a data center in a town with 10,000 people. They’re all paying on average real estate taxes of $3,000. That’s a total impact of $3 million that people are paying out of their pocket. Now, if that can be supplemented by having a new data center there, offsetting that entire dollar amount, that is a direct benefit to people living there. It’s a net benefit to local residents.
There’s a reason some of the impact plans we are seeing today are direct and dollar-denominated, right? We can offset taxes, pay for our own infrastructure upgrades, add new generation to the grid — wherever we build a data center, we can build a new renewable asset and bring energy back to the grid. Frankly, some of these ideas have resonated with communities.
Why do you think the data center unrest and backlash is happening, then?
I think the biggest reason we’re seeing that is that data centers are a physical embodiment of what artificial intelligence is. It’s the base asset for AI to work. There’s a lot of unease about how we perceive AI will impact our society and our lives and livelihoods, and its harder for communities to tell an Anthropic how to change their models. But they do think if they stop the buildout of a data center, they can stop the expansion of AI until we all figure out where it goes.
Some of the factual opposition in the beginning was high electricity usage that might impact people’s bills. That’s been addressed. Excess water? That’s been addressed. Noise impacts? You can put cooling equipment outside and wrap it in a way with sound barriers where it doesn’t impact.
The factual impacts, Jael, I think have been addressed. It’s more a corollary function of how people feel about AI — that with the data centers, people see a physical asset and they wonder how to stop that.