This article is exclusively
for Heatmap Plus subscribers.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.

Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Why farmers are becoming the new nemeses of the solar and wind industries

Farms are fast becoming one of the most powerful opponents to renewable energy in the United States, second perhaps only to the fossil fuel industry. And it’s frighteningly unclear how developers will resolve this problem – or if they even can.
As solar and wind has grown rapidly across the country, so too have protests against solar and wind power on “prime farmland,” a loose term used by industry and government officials to describe property best suited for growing lots of crops. Towns and counties are banning the construction of solar and wind farms on prime farmland. State regulators – including those run by Democrats – are restricting renewable development on prime farmland, and members of Congress are looking at cutting off or restricting federal funds to projects on prime farmland.
In theory, meeting our country’s climate goals and industry needs should require very little farmland. But those same wide expanses flush with sunlight and gusts of wind sought after by developers happen to often be used by farmers: A USDA study released this year found more than 90% of wind turbines and 70% of solar farms in rural areas were sited on agricultural land.
It would be easy for an activist or energy nerd to presume this farmland free-for-all is being driven by outside actors or adverse incentives (and there’s a little bit of that going on, as we’ll get to).
However, weeks of reporting – and internal Heatmap News datasets – have revealed to me that farmland opposition actually has a devilishly simple explanation: many large farm owners are just plain hostile to land use changes that could potentially, or even just hypothetically, impact their capacity to grow more crops.
This means there is no easy solution and as I’ll explain, it is unclear whether the renewables sector’s efforts to appear more accommodating to agricultural businesses – most notably agri-voltaics – will stem the tide of local complaints from rural farmers.
“This is a new land use that is very quickly accelerating across the country and one of the major reactions is just to that fact,” Ethan Winter of American Farmland Trust, a nonprofit promoting solar education in farm communities, told me. “These are people who’ve been farming this land for generations in some instances. The idea of doing anything to take it out of agricultural production is just hard for them, for their community, and it’s about the culture of their community, and if solar is something that can be considered compatible with agriculture.”
Over 40% of all restrictive ordinances and moratoriums in Heatmap Pro's database are occurring in counties with large agricultural workforces.
In fact, our internal data via Heatmap Pro has found that agricultural employment can be a useful predictor of whether a community will oppose the deployment of renewables. It's particularly salient where there's large-scale, capital-intensive farming, likely because the kind of agriculture requiring expensive machinery, costly chemicals, and physical and financial infrastructure — think insurance and loans — indicates that farming is the economic cornerstone of that entire community.
Resentment against renewables is pronounced in the Corn Belt, but it’s also happening even in the bluest of states like Connecticut, where state environmental regulators have recommended against developing on prime farmland and require additional permits to build on preferred fertile soils. Or New York, where under pressure from farming groups including the state Farm Bureau, the state legislature last year included language in a new permitting authority law limiting the New York Power Authority from approving solar and wind on “land used in agricultural production” unless the project was agrivoltaics, which means it allows simultaneous farming of the property. The state legislature is now looking at additional curbs on siting projects in farmland as it considers new permitting legislation.
Deanna Fox, head of the New York Farm Bureau, explained to me that her organization’s bottom-up structure essentially means its positions are a consensus of its grassroots farm worker membership. And those members really don’t trust renewables to be safe for farmland.
“What happens when those solar arrays no longer work, or they become antiquated? Or farmland loses its agricultural designation and becomes zoned commercial? How does that impact ag districting in general? Does that land just become commercial? Can it go back to being agricultural land?” Fox asked. “If you were to talk to a group of farmers about solar, I would guarantee none of them would say anything about the emotional aspect of it. I don’t think that's what it really is for them. [And] if it’s emotional, it’s wrapped around the economics of it.”
Surveys of farmers have hinted that fears could be assuaged if developers took steps to make their projects more harmonious with agricultural work. As we reported last week, a survey by the independent research arm of the Solar Energy Industries Association found up to 70% of farmers they spoke with said they were “open to large-scale solar” but many sought stipulations for dual usage of the land for farming – a practice known as agrivoltaics.
Clearly, agrivoltaics and other simultaneous use strategies are what the industry wants to promote. As we hit send on last week’s newsletter, I was strolling around RE+, renewable energy’s largest U.S. industry conference. Everywhere I turned, I found publicity around solar and farming.
The Department of Energy even got in on the action. At the same time as the conference, the department chose to announce a new wave of financial prizes for companies piloting simultaneous solar energy and farming techniques.
“In areas where there has been a lot of loss of farmland to development, solar is one more factor that I think has worried folks in some communities,” Becca Jones-Albertus, director of DOE’s solar energy technologies office, told me during an interview at the conference. However agri-voltaics offer “a really exciting strategy because it doesn’t make this an either or. It’s a yes and.”
It remains to be seen whether these attempts at harmony will resolve any of the discord.
One industry practice being marketed to farm communities that folks hope will soften opposition is sheep grazing at solar farms. At RE+, The American Solar Grazing Association, an advocacy group, debuted a documentary about the practice at the conference and had an outdoor site outside the showroom with sheep chilling underneath solar panel frames. The sheep display had a sign thanking sponsors including AES, Arevon, BP, EDF Renewables, and Pivot Energy.
Some developers like Avangrid have found grazing to be a useful way to mitigate physical project risks at solar farms in the Pacific Northwest. Out in rural Oregon and Washington, unkempt grasslands can present a serious fire risk. So after trying other methods, Avangrid partnered with an Oregon rancher, Cameron Krebs, who told me he understands why some farmers are skeptical about developers coming into their neck of the woods.
“Culturally speaking, this is agricultural land. These are communities that grow wheat and raise cattle. So my peers, when they put in the solar farms and they see it going out of production, that really bothers the community in general,” he said.
But Krebs doesn’t see solar farms with grazing the same way.
“It’s a retooling. It may not be corn production anymore. But we’re still going to need a lot of resources. We’re still going to need tire shops. I think there is a big fear that the solar companies will take the land out of production and then the meat shops and the food production would suffer because we don’t have that available on the landscape, but I think we can have utility scale solar that is healthy for our communities. And that really in my mind means honoring that soil with good vegetation.”
It’s important to note, however, that grazing can’t really solve renewables’ farmland problem. Often grazing is most helpful in dry Western desert. Not to mention sheep aren’t representative of all livestock – they’re a small percentage. And Heatmap Pro’s database has found an important distinction between farms focused on crops versus livestock — the latter isn’t as predisposed to oppose renewable energy.
Ground zero for the future of renewables on farmland is Savion's proposed Oak Run project in Ohio, which at up to 800 megawatts of generation capacity would be the state’s largest solar farm. The developer also plans to let farmers plant and harvest crops in between the solar arrays, making it the nation’s largest agri-voltaics site if completed.
But Oak Run is still being opposed by nearby landowners and local officials citing impacts to farmland. At Oak Run’s proposed site, neighboring township governments have passed resolutions opposing construction, as has the county board of commissioners, and town and county officials sued to undo Oak Run’s approval at the Ohio Power Siting Board. Although that lawsuit was unsuccessful, its backers want to take the matter to the state Supreme Court.
Some of this might be tied to the pure fact Ohio is super hostile to renewables right now. Over a third of counties in the state have restricted or outright banned solar and wind projects, according to Heatmap Pro’s database.
But there’s more at play here. The attorney representing town and county officials is Jack Van Kley, a lawyer and former state government official who remains based in Ohio and who has represented many farms in court for myriad reasons. I talked to Van Kley last week for an hour about why he opposes renewables projects (“they’re anything but clean in my opinion”), his views on global warming (“I don’t get involved in the dispute over climate change”) and a crucial fact that might sting: He says at least roughly two thirds of his clientele are farmers or communities reliant on agricultural businesses.
“It’s neighbor against neighbor in these communities,” he told me. “You’ve got a relatively low number of farmers who want to lease their land so that the solar companies can put solar panels on them for thirty or forty years, and it’s just a few landowners that are profiting from these projects.”
Van Kley spoke to a concern voiced by his clients I haven’t really heard addressed by solar developers much: overall impacts to irrigation. Specifically, he said an outsized concern among farmers is simply how putting a solar or wind farm adjacent or close to their property will impact how groundwater and surface water moves in the area, which can impact somebody’s existing agricultural drainage infrastructure.
“If you do that next to another property that is being farmed, you’ll kill the crop because you’ll flood the crop,” he claimed. “This is turning out to be a big issue for farmers who are opposing these facilities.”
Some have tried to paint Van Kley as funded or assisted by the fossil fuel lobby or shadowy actors. Van Kley has denied any involvement in those kinds of backroom dealings. While there’s glimpses of evidence gas and coal money plays at least a minor role with other characters fomenting opposition in the state, I really have no evidence of him being one of these people right now. It’s much easier and simpler to reason that he’s being paid by another influential sect – large landowners, many of whom work in agriculture.
That’s the same conclusion John Boeckl reached. Boeckl, an Army engineer, is one of the property owners leasing land for construction of the Oak Run project. He supports Oak Run being built and has submitted testimony in the legal challenge over its approvals. Though Boeckl certainly wants to know more about who is funding the opposition and has his gripes with neighbors who keep putting signs on his property that say “no solar on prime farmland,” he hasn’t witnessed any corporate skullduggery from shadowy outside entities.
“I think it’s just farmers being farmers,” he said. “They don’t want to be told what to do with their land.”
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
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.
I spent weeks trying to understand how real the water use problem is when it comes to data centers, reading research and speaking to some of the world’s leading academics, large tech firms, and environmental advocates to make my best attempt at answering some of the most important questions being asked about data centers.
Before I jump into this thicket, a few caveats. I’m not going to address the host of water pollution concerns many have raised about data centers because that is for a future article. If you want me to dissect how Rep. Alexandria Ocasio-Cortez got a jar of dirty water near a Meta data center, that was poor construction practices – not a data center’s water demand. By that same token, if you're itching for me to find out how much PFAS is in data center water, I’m not delving into that here, though I’ll just say PFAS is everywhere and isn’t a data center-specific issue.
So are there problems with AI data centers’ water use? Yes. Are data centers using too much water for society to handle? It depends on what “too much” means to you. Is the AI data center boom going to usher in a new era of drought across the United States? Probably not, but there’s a few places we should be mindful of.

Researchers told me data center water use is a painfully understudied topic rendered more obscure by a lack of public information about individual H2O consumption at the project level. Those I spoke to were split on how seriously to take the topic.
Some analyses insist the sector’s water use should be regulated and tackled head-on by the sector. I spoke with Yi Ding, an assistant professor at Purdue University, who co-authored a paper laying out a framework for evaluating the water impact of computing weighted specifically for water stress. Ding told me there is currently no set of industry-led best practices for sustainable water-conscious data center operation and her work aims to fill that gap.
When I asked Ding if data centers are actually threatening individual towns’ water supplies, she didn’t hesitate: “Yes, it’s significant.”
Others in this field have the opposite view.
“Water is often brought up as the primary concern when it’s less important,” David Mytton, a sustainable computing researcher at Oxford University, told me. “The more important thing is going to be how you bring more clean energy onto the grid, and nuclear power, so that we can generate sufficient energy to build these centers.”
Large tech companies are starting to spend less time debating the extent of the problem and more bandwidth addressing the PR crisis surrounding data center and AI water use.
Ben Townsend, Google’s head of infrastructure and sustainability, told me he believes that “from a comms and PR perspective” he has “no doubt” it would be easier to build data centers without the debate over water. “Data centers operators are not explaining why they’re using water or how much water they use. There’s a complete lack of transparency or discussion.”
Google has been getting splashy around this topic, a public relations strategy that reminds me of Meta’s recent workforce training investments. Last week, Google announced five fresh “commitments” towards its “climate-conscious approach” to water use, including a pledge to “replenish more water than we consume at our sites” by 2030.
This week, Amazon made a similar declaration and claimed its operations are 75% of the way to accomplishing this goal, which it’s calling “water positive.” Brandon Oyer, director of energy and water at Amazon Web Services, told me he thinks the industry “could’ve done better” and “come out earlier” to address its water use.
“There’s just been a lot of misinformation that has led people to [be] a little bit alarmist. And rightfully so. I would get alarmed if I thought that water was going to be impacted in my community,” Oyer said.
The basics of data center water use
Data centers need water to cool large server racks whizzing away to power AI and most other internet practices, from streaming to online banking. Normally, you don’t want computers to get too hot because then they can crash causing potentially catastrophic harm to the machine.
This water use presents a number of environmental challenges. Often, server farms rely on clean, fresh water, or filtered drinking water, a need largely for functionality reasons. They’re competing for this resource at a time when supply is dwindling amidst the crisis of global warming.
Making matters worse, much of the U.S. has faced drought conditions over the past year, including states that are typically water abundant, like Virginia and Georgia, that are at the center of the data center boom. On Monday, The Guardian reported that more than half of all planned data centers in the U.S. are in “locations that have been in drought conditions throughout the past year,” citing data center site information from federal agencies and the energy data firm Cleanview.
In the top data center destination of Texas, where peak electricity demand could more than quadruple in the near future, analysis from state university researchers released in May found data centers could wind up between 3% to 9% of water demand by 2040. Projects are being developed near cities like Corpus Christi and El Paso that were already fearful their drinking water supplies would dry up before the AI infrastructure boom came to town.
“The impact of building a data center in Arizona versus Wyoming is very different,” said Ding, the Purdue University researcher. “[Companies] will say different things because of their position. The problem is substantial and sometimes it’s not that they don’t want to use water – it means they don’t have water to use.”
The most water intensive version of data center cooling is called “evaporative cooling,” which mixes water evaporation and ventilation air flow to cool rooms in ways industry compares to human sweat. Evaporative cooling uses a lot of water and regular fresh supply because, well, the water goes away once it evaporates.
One Google data center using evaporative cooling in Council Bluffs, Iowa used more than 1 billion gallons of water in 2024, a stat that made the project a poster child for perceived excesses in water use. Somewhat ironically, we know this because Google is one of the few large tech companies to voluntarily disclose direct water consumption from individual data centers on an annual basis.
But cooling tech is becoming much more water efficient. You may have heard of “closed loop cooling” – that’s when a chilling system is supposedly self-contained. These systems as designed typically rely on loops of pipes filled with coolant flowing through them. This means they should not expel much liquid. If the modern trend in data center development skewed towards closed-loop systems, it would theoretically mean very little new water supply drawn on the average day.
“If you’re using a closed loop system, the water goes into the data center and then it doesn’t really require a refill every so often. It’s a one-time thing,” Mytton said. “If you’re using evaporative cooling, the water is continuously evaporating into the atmosphere. That’s when it’s being drawn from water sources.”
Closed-loop systems aren’t perfect because of ordinary issues like leaks. These flaws have meant this innovation has done little to assuage the loudest local concerns about water use. Critics of the sector have pointed to estimates pegging a closed-loop failure rate up to 25%. But Mytton said this criticism against closed-loop cooling systems is a little misguided. “They’re just wrong. They just don’t understand how data centers work.”
Closed loop systems and water-free cooling processes (like simple air vent-based cooling) also have trade-offs, particularly the extra energy and chemicals required to make these loops work to spec. Given data center developers are often choosing gas-fired power, which also requires water and produces greenhouse gas emissions, more power for less water is hardly a comfortable trade-off from an environmental perspective.
“‘Closed-loop cooling’ is a marketing gimmick,” proclaimed anti-data center group Food and Water Watch in an April blog post, calling the practice “greenwashing” and “just clever advertising.”
We do not know right now how much water most data centers are actually using, sans a handful of companies reporting individual facility use like Google. The data center development space – Big Tech, their subsidiaries, start ups, real estate firms – is mostly keeping their individual facility water usage private, and there isn’t really any regulation at any level of government to compel this information to be released in the United States, despite it being the number one destination for data center development. Corporations often consider these figures proprietary and municipal governments often consider this confidential business information, making it likely to be redacted or withheld from public records requests.
For example, in Wisconsin, an environmental group sued the city of Racine when officials refused to give water use projections for Microsoft’s data center campus in the nearby village of Mount Pleasant, about five miles from the shores of Lake Michigan. The projections were ultimately released under court order, showing Microsoft’s data center campus was projected to use up to 234,000 gallons of water on peak days or up to 2.8 million per year; eventually those numbers could almost triple to 702,000 gallons on peak days, or almost 8.5 million gallons a year.
These projections, according to Microsoft, are for a facility where more than 90% of the facility will rely on closed-loop cooling. The rest of the data center campus “will use outside air for cooling, switching to water only on the hottest days.” The company has called this design a “technological milestone” that’ll use “roughly the amount of water a typical restaurant uses annually.”
Microsoft is accurate here: the average eatery uses roughly 250,000-to-300,000 gallons of water a year according to restaurant sustainability advocates, a level of consumption that’s led restaurants to be roughly 15 percent of total water use in commercial facilities in the United States.
Personally I think it is easier and more useful to compare a data center to a farm, especially given how many are fighting to stop these projects to preserve prime farmland. Agriculture doesn’t measure water consumption by the gallon; farms use far too much water for those stats to work here. Instead farms use acre-feet, which is calculated using the volume of water necessary to entirely cover an acre of land with one foot of water. For posterity, one acre-foot is almost 326,000 gallons of water, which is about the maximum daily water consumption of that Microsoft data center in Mount Pleasant, Wisconsin. In 2023, the average amount of water applied to a single acre of farmland for irrigation was 1.5 acre-feet, rendering this figure comparable to a large Microsoft data center. This is still a lot of water and not a 1:1 comparison, since different crops require water at different times. But even if a data center consumed that much water every day for a full year, that’s 365 days. An average large farm is a little more than 1,400 acres and many farms span far more acreage. That’s the sort of relative scale we’re working with. So, for instance, a large family farm in Stafford County, Kansas, might use something like 420 million gallons of water over roughly 1,000 irrigated acres of corn in an average year.
I’m no farming expert – there might be things about farmland irrigation I don’t necessarily understand. But it's hard for me to look at these numbers and not long for some sort of rethinking about how we’re doing water math with data centers, especially given the environmental trade-offs around using less water.
Honestly I don’t think trying to explain this math helps anymore because secrecy may have spoiled the well in Racine, pun intended. In September, a peer-reviewed study by University of Wisconsin researchers found the Mount Pleasant datacenter had become “a microcosm of a macro problem with secrecy.” The paper stated that while closed-loop systems at the Mount Pleasant facility “may significantly reduce water use during some of the year, there is still a question of transparency and why it has been so difficult to obtain clear answers about water use.” Full transparency around water use, as well as the energy required for water-lite cooling practices, would be “essential” for any future research into industry practices “to have credibility,” the study stated.
Asked for comment on the study, a Microsoft spokesperson said via email: “Our datacenter campus in Mount Pleasant leverages the latest and most innovative cooling technology available. In past datacenter designs, water has played a key role in datacenter cooling and humidification, but our new designs aim to eliminate this continuous need for municipal water for cooling. The bottom line is that this data center, and others we build in the future, will not require massive amounts of water.”
When you zoom out further, water use by sector shows that U.S. data centers are not the leading driver of water use and its scarcity to date. Thermal power (fossil energy) and agriculture are by far the largest users of water in the U.S. economy, and it would be challenging for the data center industry to ever catch up. Industry figures collected in 2015 found thermo-electric power used roughly 132.4 billion gallons of water per day. Irrigation was a close second at 118 billion gallons of water daily. By comparison, researchers have noted International Energy Agency estimates that the entire global data center sector consumed a comparable amount of water during all of 2023. These are pre-AI boom numbers, but they tell us a lot about relative scale.
However, once again, researchers, tech companies, and advocates alike all told me they believe this macro picture elides individual communities and transparency issues are rendering these comparisons unhelpful for calming concerns down. The data center conflicts are local matters felt acutely, especially in places where drinking water is either hard to come by or expensive. Your average rural desert town or midwestern farming district cares little about the world; they want to know if their own wells will run dry. As Amazon’s Oyer told me, “The hyperlocal influence you can have on a water supply is why it becomes top of mind for people.”
One way to measure data center water impacts in aggregate may be to quantify the potential infrastructure upgrades necessary to meet the industry’s demand. A new study by researchers at University of California-Riverside and CalTech found that new water infrastructure spending for data centers alone could total as much as $58 billion in only four years time. These upgrades will be necessary in order for municipal water supplies to withstand peak demand on the hottest days of the year, a need akin to grid resilience upgrades. Not to mention our nation’s sewer systems are in desperate need of upgrades.
“If a data center was able to show they weren’t stripping our water resources and convinced a community they have mitigation strategies at the local level, that’s a theoretical path,” said Kathryn Hoffman, executive director of the Minnesota Center for Environmental Advocacy. Her organization has successfully stalled data center projects in the state with lawsuits arguing city and county environmental reviews are failing to account for the full extent of local resource usage, including water.
“Unfortunately, we’re a long way from that,” Hoffman added.
And more of this week’s biggest news around project fights.
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.
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.
3. Davidson County, Tennessee – Anyone who’s anyone should be talking about Nashville.
4. Lehigh County, Pennsylvania – I’m used to eagles halting wind turbines, but now people are trying to use the birds to stop data centers.
5. Laramie County, Wyoming – We had another anti-wind rally backed by national conservatives, this time in Wyoming.
6. Ellis County, Kansas – Let’s end on a sweet note: a giant solar farm getting its permits.
A conversation with Craig Lawrence of Energy Transition Ventures
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.”
It was a provocative answer. I reached out to Lawrence and asked if he’d explain what realism on cleantech and climate change looks like in the age of the data center boom. The following conversation was lightly edited for clarity.
So okay, what does “realism” in the clean energy space look like in the era of the data center boom?
In general, it looks like progress. Whether that’s technological or social, which often includes increased energy consumption. This is an extreme example of demand appearing at once. And what’s been incredible for me over 25 years of being involved in this stuff is, we’re finally at a point where clean energy can meet most of this demand – the cost of renewables and the cost of energy storage are now at a point where they directly compete with or without subsidies against fossil fuels.
However we’re not at a point where it's reasonable to expect 100% of this demand can be renewables. I don’t think that’s practical. Natural gas is still a very affordable, very flexible energy source. The data centers are going to use them.
I think the game should be figuring out how to support the most clean energy. That includes nuclear and other low-carbon sources to meet this demand.
I’d like to represent the other side of this really quickly. The pro-moratoria side here would be, why? Why do we actually have to build all of this? Why not just halt these data centers so the gas isn’t built, then invest in renewable energy to green our grid?
I made that comment about being a realist. We have an administration in this country that isn’t going to do that. Who will halt that? Who is in a position to actually do that? The answer is nobody.
We have another problem to worry about – the administration halting renewable energy projects. We have to prevent that from happening. I’ve been following the school of thought that there’s a grand bargain on permitting reform applying to renewables and other sources of energy.
I honestly truly believe that head to head, renewables and energy storage beat natural gas. In the free market of power, as much as it is a free market, renewables are winning and so you are painting a target on your back trying to stop all development unless it’s 100% renewables. You’re going to face a backlash from that.
In the U.S., 93% of new electricity generation is solar, wind, and storage. Do you really need 100%? You’d like it to be but man, take the W.
We’re winning. Not only are we winning but we are destroying the competition. To create a battle that has the potential to create significant backlash against renewables is the wrong move right now.
Okay, but on the opposing side someone would say that argument is what landed us in this place to begin with. Some would say a frame of realism is why we can’t seem to shake a reliance on fossil fuels.
I don’t think that’s the reason why.
Once renewables and storage became cost competitive they’ve dominated since. Prior to that, they weren’t cost competitive and it was a policy fight to say people should be forced to buy more expensive electricity that was cleaner for the climate. That battle was difficult and had some wins and some losses. We’re past that battle now.
Renewables are winning in the global market. Would I love a scenario where we could meet all the demand with solar, wind, and batteries? Yes. And I think we can get there, but there are real practical limitations to those resources too. They’re not 24/7 resources, even though they’re getting close to that.
Let’s just say I agreed with them and that side of the argument. What can you do about it with this administration? You can certainly try to elect candidates that’ll be supportive of it. You can’t force a moratorium.
Luckily, for that side of the argument, there’s plenty of people upset about data centers that aren’t just thinking about climate change.
How do you feel about the data center backlash as an investor in cleantech, and does it impact the decisions you make around who you potentially finance?
Not yet. The data center boom for us is indicative of a broader boom for increased electricity demand, which is generally good for what we invest in.
I think this feels very deja vu. Whether it's nuclear or renewables or pipelines, someone is going to be against it and make a lot of noise. That’s part of the reason we struggle to build things in this country.
But no, if anything, the whole AI and data center buildout is a tailwind for the energy transition and climate technologies. It’s helping gas too, no doubt, because people are trying to procure any power they can, and so they’ll do it by whatever means necessary, but I continue to think we’re oversupplied globally on solar panels and batteries. That’s thanks to China, primarily. And you can build those facilities in one or two years. Gas has five-plus lead times for turbines. We’re in a position to win that battle without having to make it a political battle over halting the buildout of these things.
Do you think the upset over data centers will impact the energy projects to power them?
Yes, I do. I’m seeing subsections of X, farmers and people purporting to support them, that are really upset about solar on farmland and engaged in interesting discussions around it. The same happens with data centers and farmland. It’s interesting to try and figure out their motivations. Is it preserving the farming or an angle to attack development they don’t like?
I am seeing a mobilization of people against buying up land and buying up electricity and water and using it for… xyz. Right now the flavor is data centers. It’ll be something else down the road. We’ve even heard the same things around the EV charging buildout.