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Spotlight

Battery Developers Are Feeling Bullish on Mamdani

NineDot Energy’s nine-fiigure bet on New York City is a huge sign from the marketplace.

Battery installation.
Heatmap Illustration/NineDot Energy, Getty Images

Battery storage is moving full steam ahead in the Big Apple under new Mayor Zohran Mamdani.

NineDot Energy, the city’s largest battery storage developer, just raised more than $430 million in debt financing for 28 projects across the metro area, bringing the company’s overall project pipeline to more than 60 battery storage facilities across every borough except Manhattan. It’s a huge sign from the marketplace that investors remain confident the flashpoints in recent years over individual battery projects in New York City may fail to halt development overall. In an interview with me on Tuesday, NineDot CEO David Arfin said as much. “The last administration, the Adams administration, was very supportive of the transition to clean energy. We expect the Mamdani administration to be similar.”

It’s a big deal given that a year ago, the Moss Landing battery fire in California sparked a wave of fresh battery restrictions at the local level. We’ve been able to track at least seven battery storage fights in the boroughs so far, but we wouldn’t be surprised if the number was even higher. In other words, risk remains evident all over the place.

Asked where the fears over battery storage are heading, Arfin said it's “really hard to tell.”

“As we create more facts on the ground and have more operating batteries in New York, people will gain confidence or have less fear over how these systems operate and the positive nature of them,” he told me. “Infrastructure projects will introduce concern and reasonably so – people should know what’s going on there, what has been done to protect public safety. We share that concern. So I think the future is very bright for being able to build the cleaner infrastructure of the future, but it's not a straightforward path.”

In terms of new policy threats for development, local lawmakers are trying to create new setback requirements and bond rules. Sam Pirozzolo, a Staten Island area assemblyman, has been one of the local politicians most vocally opposed to battery storage without new regulations in place, citing how close projects can be to residences, because it's all happening in a city.

“If I was the CEO of NineDot I would probably be doing the same thing they’re doing now, and that is making sure my company is profitable,” Pirozzolo told me, explaining that in private conversations with the company, he’s made it clear his stance is that Staten Islanders “take the liability and no profit – you’re going to give money to the city of New York but not Staten Island.”

But onlookers also view the NineDot debt financing as a vote of confidence and believe the Mamdani administration may be better able to tackle the various little bouts of hysterics happening today over battery storage. Former mayor Eric Adams did have the City of Yes policy, which allowed for streamlined permitting. However, he didn’t use his pulpit to assuage battery fears. The hope is that the new mayor will use his ample charisma to deftly dispatch these flares.

“I’d be shocked if the administration wasn’t supportive,” said Jonathan Cohen, policy director for NY SEIA, stating Mamdani “has proven to be one of the most effective messengers in New York City politics in a long time and I think his success shows that for at least the majority of folks who turned out in the election, he is a trusted voice. It is an exercise that he has the tools to make this argument.”

City Hall couldn’t be reached for comment on this story. But it’s worth noting the likeliest pathway to any fresh action will come from the city council, then upwards. Hearings on potential legislation around battery storage siting only began late last year. In those hearings, it appears policymakers are erring on the side of safety instead of blanket restrictions.

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Spotlight

The Real vs. Imagined Problems with Data Centers’ Water Use

How much water is too much?

Water, a data center, and a protester.
Heatmap Illustration/Getty Images

The data center water issues are real – but they aren’t what you think.

Too often, I hear people say the number one reason they’re against data center development is water use. Heatmap’s data shows water consumption is historically the reason cited most often by activists when opposing projects. This complaint, they often say, is rooted in the fear that this nascent buildout of AI infrastructure will simply draw so much H2O it will leave little liquid left for the rest of us.

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Hotspots

Texas Is the Eye of the Bipartisan Data Center Hurricane

And more of this week’s biggest news around project fights.

The United States.
Heatmap Illustration/Getty Images

1. Matagorda County, Texas – The bipartisan data center backlash is now so powerful that a top Republican Texas state official is doing an event with the Democrat vying to replace him.

  • On Thursday afternoon, outgoing Republican agriculture commissioner Sid Miller and Democratic candidate Clayton Tucker are marqueeing a forum hosted by Matagorda County Against Data Centers, an opposition group that appears to also monitor solar and battery storage for potential opposition, too. Miller is leaving his post at the end of the year after being defeated in a GOP primary by Nate Sheets, who was supported by Gov. Greg Abbott.
  • This bipartisan forum will take place after Abbott himself called for new laws and regulations on data centers in a letter to Texas Public Utility Commission Chair Thomas Gleeson and ERCOT CEO Pablo Vegas. Abbott said he’d push to require data centers to pay costs for electric infrastructure and use “water-efficient technologies such as closed-loop cooling systems.” Also on the to-do list? Mandatory property setbacks and noise reduction.
  • It’s becoming clear the frustrations against AI infrastructure and associated energy projects are starting to boil without a vent. The first county to issue a data center moratorium in Texas has withdrawn the effort after facing a $100 million lawsuit from a developer, and other counties are delaying future moratoria on fears of legal risks. Where will all of this frustration go without the option to pause development locally?
  • We’re starting to see Texas legislators seek to channel this anger. Last week, Rep. Veronica Escobar – a Democrat who represents the dry, data center-anxious city of El Paso – offered an amendment in a House committee to block funding for the EPA’s new data center construction rules. The amendment failed but I’d hardly be surprised to see this sort of rider gain traction if Democrats retake the lower chamber, especially if data centers are a major election issue.

2. Albany County, New York – As we await Gov. Kathy Hochul’s decision on whether to enact the nation’s first statewide moratorium on data centers, I wanted to bring up some pretty crucial facts about the situation in the Empire State.

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Q&A

One Investor’s Climate ‘Realism’ In the Data Center Era

A conversation with Craig Lawrence of Energy Transition Ventures

The Q&A subject.
Heatmap Illustration

This week’s conversation is one of my favorites so far – Craig Lawrence of Energy Transition Ventures. Lawrence has been around the block and back again when it comes to the cleantech investment landscape. So I took note when he got into a brief back-and-forth with an activist fighting data centers in Indiana who claimed there were “so many clean energy people who no longer care about climate change” because they “now support fossil fuel data centers if some nominal amount is met with clean energy.”

Lawrence replied, “Some of us are simply realists.”

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