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Did a battery plant disaster in California spark a PR crisis on the East Coast?

Battery fire fears are fomenting a storage backlash in New York City – and it risks turning into fresh PR hell for the industry.
Aggrieved neighbors, anti-BESS activists, and Republican politicians are galvanizing more opposition to battery storage in pockets of the five boroughs where development is actually happening, capturing rapt attention from other residents as well as members of the media. In Staten Island, a petition against a NineDot Energy battery project has received more than 1,300 signatures in a little over two months. Two weeks ago, advocates – backed by representatives of local politicians including Rep. Nicole Mallitokis – swarmed a public meeting on the project, getting a local community board to vote unanimously against the project.
According to Heatmap Pro’s proprietary modeling of local opinion around battery storage, there are likely twice as many strong opponents than strong supporters in the area:

Yesterday, leaders in the Queens community of Hempstead enacted a year-long ban on BESS for at least a year after GOP Rep. Anthony D’Esposito, other local politicians, and a slew of aggrieved residents testified in favor of a moratorium. The day before, officials in the Long Island town of Southampton said at a public meeting they were ready to extend their battery storage ban until they enshrined a more restrictive development code – even as many energy companies testified against doing so, including NineDot and storage developer Key Capture Energy. Yonkers also recently extended its own battery moratorium.
This flurry of activity follows the Moss Landing battery plant fire in California, a rather exceptional event caused by tech that was extremely old and a battery chemistry that is no longer popular in the sector. But opponents of battery storage don’t care – they’re telling their friends to stop the community from becoming the next Moss Landing. The longer this goes on without a fulsome, strident response from the industry, the more communities may rally against them. Making matters even worse, as I explained in The Fight earlier this year, we’re seeing battery fire concerns impact solar projects too.
“This is a huge problem for solar. If [fires] start regularly happening, communities are going to say hey, you can’t put that there,” Derek Chase, CEO of battery fire smoke detection tech company OnSight Technologies, told me at Intersolar this week. “It’s going to be really detrimental.”
I’ve long worried New York City in particular may be a powder keg for the battery storage sector given its omnipresence as a popular media environment. If it happens in New York, the rest of the world learns about it.
I feel like the power of the New York media environment is not lost on Staten Island borough president Vito Fossella, a de facto leader of the anti-BESS movement in the boroughs. Last fall I interviewed Fossella, whose rhetorical strategy often leans on painting Staten Island as an overburdened community. (At least 13 battery storage projects have been in the works in Staten Island according to recent reporting. Fossella claims that is far more than any amount proposed elsewhere in the city.) He often points to battery blazes that happen elsewhere in the country, as well as fears about lithium-ion scooters that have caught fire. His goal is to enact very large setback distance requirements for battery storage, at a minimum.
“You can still put them throughout the city but you can’t put them next to people’s homes – what happens if one of these goes on fire next to a gas station,” he told me at the time, chalking the wider city government’s reluctance to capitulate on batteries to a “political problem.”
Well, I’m going to hold my breath for the real political problem in waiting – the inevitable backlash that happens when Mallitokis, D’Esposito, and others take this fight to Congress and the national stage. I bet that’s probably why American Clean Power just sent me a notice for a press briefing on battery safety next week …
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A chat with Colette Lamontagne, senior director for electric power at Ceres.
This week’s conversation is with Colette Lamontagne, senior director for electric power at the sustainability finance advocacy group Ceres. Her team just released a shareholder engagement guide for the utility space around data center development. I’ve been wondering when the ESG crowd would enter into the AI infrastructure fray, so I asked if I could chat with Colette about what the guide could teach my lovely readers and whether the data center backlash portends a new wave of boardroom fights between electric companies and institutional investors.
Our conversation was lightly edited for clarity.
What is the big message of this guide? If you were to talk about this over a coffee, what would be the topline takeaway?
These data centers are coming, but they can be done right. They don’t have to be done in a way that negatively impacts energy, water, and communities, and we need to slow down just enough to be able to do it right.
It’s not a guide about what data centers should do — it's a guide on the risks to the electric power sector. The biggest risk is the magnitude of power needed and the timing — how quickly it’s needed. Because of that, the traditional process for electric utilities can’t keep pace. It’s all regulated. There’s a lot of steps they have to go through to build new transmission infrastructure and new generation. If the grid connected companies can’t keep up the pace, data centers will just build their own generation. And the biggest problem with that? You have all these resources not shared by the users.
Do you think data centers are going to create a new wave of ESG-based investor advocacy?
I haven’t thought about it as a new age for ESG, but that’s a good point. We are moving beyond asking companies about targets and to create transition plans. Now we’re looking at how to accelerate solutions for climate impacts. I do think there’s a new age related to that.
When it comes to data centers, the questions aren't about utilities and their targets, but instead how they’ll meet this need so they don’t go back to old coal plants or [build] new [behind the meter] plants not used by the grid.
Should we anticipate some kind of new shareholder advocacy wave around how integrated utilities and power companies address or mitigate the impacts of the data center boom on meeting their resource plans, especially decisions made as a result of shareholder advocacy on climate?
If a data center comes to a utility and says they need 100 megawatts of power and the utility chooses to serve that with coal or gas instead of new renewables, it will impact their clean energy goals. If they say they signed a power purchase agreement and give all these renewable resources to a data center, that’s not new — you’re still impacting your clean energy goals because then you’re taking the renewables away from other customers. You have to build something else for those other customers. What are you building instead?
How they think about their long-term resource plans is really important. These generation sources will be around for a very long time. In most cases, renewable energy is cheaper to build. Gas plants require a four- or five-year wait for turbines. So not only is it better for the environment but better for business to get these renewables built.
I’ve written a lot about data center water use. The guide goes into the energy sector’s water use impacts from this increased power demand from data centers; specifically, it says investors should consider asking utilities to conduct new comprehensive water risk assessments around it. Can you help my readers and I better understand what this kind of assessment is and why companies should consider doing this?
Different types of electric generation facilities use different amounts of water. Some of it is withdrawn and put back. Some of it is withdrawn and consumed. Those matter. In cases when water is drawn and put back, the temperature goes up — that’s impacting the environment.
It’s an interesting dichotomy. The new technologies that use air cooling use less water, but they use more energy. Then you have to think about what electricity you’re using and how much water that electricity is using. It’s the life-cycle impacts.
Is there any kind of risk for investors or energy companies associated with the data center sector, given its political challenges?
Well, utilities usually get the short end of the straw. They always get blamed for everything. I say that with a laugh because I used to work for a utility.
Some of these companies have an obligation to serve. If someone comes to them and says they need power, they are required to provide it. However, they can protect themselves and other ratepayers. If the utility builds a whole generation plant and all this transmission infrastructure to serve one data center, and then the data center gets canceled, yeah that’s a risk — not to the bottom line of the utility but to their reputation.
Plus more on this week’s biggest development fights.
1. Washtenaw County, Michigan — The Mitten State made itself the center of the data center backlash this week, as multiple AI skeptics won key Democratic congressional primaries. Yet the most significant election result wasn’t a primary vote, but rather a quiet referendum in a small town outside Ann Arbor.
2. Travis County, Texas — I’ve been getting a lot of texts from sources about Texas Governor Greg Abbott issuing a stop to data center permitting. Let’s get into what really is happening here.
3. Jefferson County, Missouri — Data center opposition can win a Republican political primary, too, as demonstrated this week in this rural pocket of the Show-Me State.
4. Santa Clara County, California — We conclude this week’s Hotspots with a warning about the dire political straits of battery storage technology.
The agency is reportedly considering a land swap that would allow AI infrastructure in one of northern Virginia’s largest green spaces.
A national park site and Civil War conflict area in Virginia is now a battleground in the fight over data center development on federal real estate — and Congress is starting to get involved.
On July 23, the Prince William Times reported that Trump’s National Park Service is “considering a land swap” to allow “at least four data centers” on land within the boundaries of Prince William Forest Park in northern Virginia, one of the largest green spaces in the Washington D.C. metro area and a flashpoint during the Civil War. Since then, my colleagues and I have confirmed based on interviews with sources familiar with the plan, public lobbying disclosures, and previously unreported correspondence from Congress to the Park Service that, indeed, there has been a concerted behind-the-scenes effort to make this swap happen, going back more than a year. Many of those concerned about the idea of this exchange told me they’ve been unable to get clear answers from the Park Service on the likelihood of the swap.
Here’s what we do know: A data center development company, Highland Digital, under an LLC registered by their legal counsel, has sought permission from Prince William County to build a large tech infrastructure complex next to the park, at a site other companies have sought to rezone for that purpose since at least 2022. Though the land is within the park’s boundaries, it is not actually owned by the park; it was held by a private entity before the site was established, enabling it to be used for development through a quirk in public land use law colloquially known as “inholding.”
Meanwhile, the data center backlash has made siting new projects in Northern Virginia increasingly difficult. In Prince William County specifically, supervisors rejected a large data center project near Dulles Airport last month. The sort of land Highland Digital has access to would be challenging to develop in this political environment, given that county planning office staff said it also included wetlands and streams that made permitting difficult.
So as Highland Digital struggled to get permission, it came up with a Plan B, according to two local park conservation advocates familiar with the project’s progress: It could swap some of the land in the park with other parcels close by owned by the Park Service without as much ecological sensitivity. The company retained a lobbyist, Jeff Small, who was a senior adviser to the Interior Department under the first Trump administration and last year publicly boasted of close ties to the White House (which distanced itself from him in response). Small lobbied the National Park Service and Interior Department for a land exchange on Highland Digital’s behalf starting in May 2025 through the first quarter of this year, according to federal lobbying disclosures.
Around this time, Ashley Studholme, executive director of the Prince William Conservation Alliance, first learned about the land swap proposal. Studholme told me Highland Digital CEO Peter Batten proposed the idea to the park’s superintendent George Liffert in a meeting the three had that month with Small in attendance. Highland Digital provided Studholme and Liffert with a map she shared with me outlining different parcels that would be involved. Studholme said that afterwards, nearly identical parcel delineations were then added to an official National Park Service GIS map online. This meeting and map change assertion were first reported by the Prince William Times.
Kyle Hart, a senior program manager for the National Parks Conservation Association, told me his organization has had “loose discussions” with Park Service staff about the land swap, which he described as “a newer thing” that “we know has been proposed.”
In response to my request for comment, NPS sent the following statement attributed to an unnamed spokesperson: “The National Park Service preserves the historic, cultural and natural integrity of national parks, including Prince William Forest Park. The NPS does not regulate private land use outside park boundaries or comment on speculative uses.”
On paper, Hart told me, the swap has some upsides for NPS. The Park Service would get more land in the deal than Highland Digital would acquire. It could also permanently protect sensitive resources. But the cumulative impact of the exchange, he said, is unambiguously in Highland Digital’s favor.
“The developer comes out ahead,” he told me. “You combine that with another 100 or so acres [they hold] that is direct road frontage, and you have land primed for development without any of the hiccups of pesky streams and so forth. And they’d be doing this to expedite a data center within their borders directly adjacent to the land they’re protecting.”
In mid-July, before the Prince William Times story published, staff for Representative Eugene Vindman — the Democratic congressman whose district includes the park — contacted the Park Service requesting “reports of a potential exchange or transfer of land within Prince William Forest Park. The inquiry asked for information on deed ownership as well as any legal authority for the Park Service to exchange land with a private corporation for development without congressional approval.
Vindman’s staff provided their request to me this week, informing me they never heard back.
“I’m very concerned about the proposed data center development in and near Prince William Forest Park,” Vindman said in a statement his office provided. “I have been clear that data centers should not be built near parks, schools, or residential communities, and I’ll continue to fight for our community on this issue.”
Very little about Highland Digital or its data center plans is available online, while Data Center Dynamics, a trade publication, has reported that details about the data center are “sparse.” A public meeting to discuss the project planned for the parcel the company currently owns was scheduled for May, but was then canceled after the developer rescinded a permitting application with Prince William County without a stated reason.
Highland Digital did not respond to requests for comment. Neither did representatives from Jeff Small’s firm, 76 Group, who was registered to lobby for the developer on behalf of EIS Solutions, the firm’s name before it rebranded in 2021. Small’s contact information is not public and I was unable to reach him for this story.
With reporting by Matthew Zeitlin.