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And what renewables can learn from it.

A sprawling multi-state carbon pipeline appears easier to permit and build than wind and solar farms in red states, despite comments the president-elect or his team may have said on the campaign trail. And the answer has to do with more than just the potential benefits for oil and gas.
The Summit Carbon Solutions CO2 pipeline network would criss-cross five states – Iowa, Minnesota, Nebraska, and the Dakotas – connecting dozens of ethanol “biorefinery” plants to carbon sequestration sites for storing CO2 captured while producing the agri-fuel. On paper Summit has its work cut out for it in ways not dissimilar to the troubles facing solar and wind. Land use issues, ecological concerns, the whole lot. And its work has become controversial amongst a myriad of opposition groups I often write about like rural farmers and, of course, conspiratorial NIMBYs – chief among them Vivek Ramaswamy and Robert F. Kennedy Jr., two members of the incoming Trump administration.
But Ramaswamy and RFK Jr.’s presence is providing cold comfort compared to the selection of North Dakota Gov. Doug Burgum – a vocal supporter of the project – to be Interior Secretary.
“We’re screwed,” wrote Dawn Shepard, a North Dakotan opposed to the project, on Facebook after the selection was announced. “He will get all Carbon Capture projects approved. I thought Republicans and Trump, included, didn’t believe in climate change. Trump’s not keeping his word.”
It’s not exactly that simple, and its debatable whether Summit’ll actually help address climate change, but the premise is true: Trump’s election may just assure the pipeline’s completion, if all things go its way.
“Those appointments are definitely a big thumb on the scale of the pipeline going through,” said Mark Hefflinger of Bold Alliance, one of the activist networks fighting the pipeline project.
In my conversations with activists and the company, it doesn’t appear there’s any easy way for the Interior Department – which oversees all federal land use – to grease all of the skids for Summit, so to speak. But there are a number of factors in its favor now: the pipeline will still require Army Corps of Engineers permits for water body crossings and those tend to require environmental reviews that heavily involve Interior. At the same time, all sides expect the Interior Secretary and likely Energy Secretary Chris Wright (an oil magnate) to champion beneficial Inflation Reduction Act tax credits for carbon capture, sequestration, and utilization in tax talks early next year.
All the while, most state-level regulators have finished or are completing approvals of the pipeline, with the exception of South Dakota where Summit on Tuesday resubmitted its permitting application to the state’s Public Utilities Commission. While I’ve been told the company didn’t substantially adjust its routing in response to the failed ballot initiative, executives certainly did change plans to elide a repeat rejection from the commission after it said no to pipeline plans last year.
“Our efforts involved spending more than a year driving county roads, knocking on doors, and having meaningful, face-to-face conversations with landowners,” Sabrina Zenor, Summit’s director of stakeholder engagement and corporate communications, told me. “These conversations guided our approach.”
There’s a lot that could still go awry for Summit. They could lose legal battles in Iowa that send them back to the drawing board in a crucial hub for corn and ethanol and where public opinion may be souring on the developer. South Dakota could be its own ball of wax, given how passionate the opposition in the state is.
Trump’s comments on the matter have been vague, indicating he’s … well, being very Trump about this. “Well, you know, we’re working on that,” Trump said when asked about the pipeline at an Iowa primary event last year. “And you know, we had a plan to totally — it’s such a ridiculous situation, isn’t it? But we had a plan, and we would have instituted that plan, and it was all ready, but we will get it — if we win, that’s going to be taken care of. That will be one of the easy things we do.”
Ultimately it may be with many issues: whoever’s in the room last with Trump could decide the pipeline’s fate.
But regardless, developers of renewables and battery storage could take away a few lessons from the pipeline network.
Walt Bones, the former head of South Dakota’s Agriculture Department, is one of the landowners currently negotiating a financial agreement for land use with Summit. He’s a farmer, and like many farmers we write about here at The Fight, he doesn’t support building stuff on or near his land if there’s going to be an impact on his crop yields. He told me that he believes the opposition in the state is largely the product of a rush to build by an over-zealous company seeking the maximum benefit from federal tax credits. And they spooked people, producing widespread skepticism of the pipeline.
“Summit did not help themselves any,” he said.
Now of course, there’s lots of concerns about CO2 pipelines’ environmental impacts and the risk of them going, well, kablooey. But unlike how some farmers skeptically view agri-voltaics (e.g. dual use solar), the thought of a pipeline beneath the earth gives Bones – a former farm regulator – no qualms. And the reasoning is simple: He doesn’t believe the pipeline, which will be buried, will impact his farming at all. And ethanol – unlike solar or wind – will feed demand for more farming.
“Basically zero impact to our land. We’ll still be able to farm over it. We’ll still be able to graze over it with our cows,” he said. “I know what the value is … [it’ll] guarantee the future viability of corn.”
So where does this leave us? It’s likely Bones doesn’t represent every farmer. But maybe there’d be a benefit in renewable developers focusing on finding ever-more ways to create a fly-wheel where solar and wind energy generation creates more business for farmers. Clearly, the sheer footprint of a utility scale solar or wind project can be more impactful than a thin pipeline crossing a property.
And I guess they should also make more politically powerful friends in the Dakotas.
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The American climate movement is beginning to look a lot like AI doomers versus the techno-optimists. It’s a dynamic that is winning local bans – and very little else for now.
On one side, you’ve got the left-leaning insurgent grassroots movement against data centers. In many cases this push is in the name of climate action and environmental justice, with activists citing the risks of pollution from gas-fired power and the potential for strain on existing electricity supplies. But in many, many other cases, this movement is decidedly not about climate action; instead it’s a movement addressing everything from energy prices and power over large corporations to AI use generally.
Or, perhaps the anti-data center movement’s big tent is best summarized in this quote from comedian and activist Ilana Glazer: “The thing that is genuinely waiting for us on the other side of AI and data centers is the collective.”
On the other end of the spectrum, you have a raft of data center-curious centrists, liberals, and, for lack of a better term, capitalists. This diametrically oppositional political force wants to ensure data centers continue being built as states and the federal government figure out how to make policy surrounding them. Yes, they want regulations, but they’ll have to qualify even supporting the idea of a single full state – any state – pausing data centers.
“I tend to find myself in the middle of all of this AI and data center policy, because I don’t think a heavy-handed approach in either direction is smart or productive,” said Tre Easton, vice president of public affairs for the Searchlight Institute, a policy think tank geared toward pushing Democrats into positions more broadly popular in the general electorate. “If you’re doing moratoria in one state and Meta says, okay, fine, they’ll go to a different state where they’ll run roughshod.” He added: “This buildout is happening. Let’s just make the rules. Put out rules of what this should look like.”
I spent weeks talking to activists fighting data centers to better understand their end goals. Right now what folks want to talk about most is moratoria, until industry-specific regulation is in place governing all things energy, water, noise, and labor.
“Our motto is ban, legislate, regulate,” said Ben Dziobek, founder of Climate Revolution Action Network, which is fighting data center expansion in New Jersey. Dziobek’s organization is one of roughly five dozen in the Garden State that have called on newly-elected Democratic Gov. Mikie Sherill to institute a moratorium on data centers, including state representatives from The Nature Conservancy and ACLU.
When I asked Dziobek what he’d like to see after a moratorium, the answer was clear: he wants to see Big Tech pay for the energy transition. “It would be beneficial if we could get companies who are using more load than entire states to build out the clean energy future. Someone’s gotta pay for this. The largest companies in the world have to come in.”
Undoubtedly this movement is increasingly influential and rooted in a now bipartisan concern about data centers founded in valid concerns about data center impacts and the rise of AI. But at least right now, In New Jersey, and so many other Democrat-controlled states, this movement has won little ground outside the local level and no statewide Democratic leader (e.g. governor) has made a data center moratorium their raison d'être. Neither have I seen the push for a moratorium pick up steam in any state known as a deep blue bastion for climate policy. Its greatest achievements by the numbers are the cancellation rate of projects that have faced local pushback (37%, according to Heatmap Pro), the city-wide moratoria in large left-leaning bastions like Denver, and the sheer existence of a federal data center moratorium bill led by progressive celebrities like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.
In fact, what I am seeing is Democratic statewide leaders rejecting efforts to curtail their development or regulate energy and water usage. In California last year, Gov. Gavin Newsom vetoed a bill requiring data center developers to report their water use. In New York, Gov. Kathy Hochul has so far shrugged off a push for her to back a three-year moratorium on new data centers. In Massachusetts, Gov. Maura Healey supports continuing to foster the state’s data center buildout and the state is preserving its data center sales tax exemption at a time when GOP leaders in other states want to repeal similar subsidies. Colorado legislators abandoned a push to regulate data centers earlier this month, after Washington state did the same.
Perhaps infamously in Maine, the Democrat-led state legislature nearly enacted a two-year moratorium on data center development only to be vetoed by Gov. Janet Mills. Democrats then failed to override the veto.
Some Democratic leaders are taking up the light-touch approach. On Wednesday, Pennsylvania Gov. Josh Shapiro released long-awaited principles for data center developers seeking fast-track permitting processes with state agencies. Under these policies, companies can get permitted more quickly if they abide by a number of energy, water, and labor standards.
On a granular level, even this policy quietly represented a disappointment for climate activists. One of the principles called for data centers to get at least one third of their power from “clean” sources by 2035 – which sounds nice until you realize Shapiro only two years ago was calling for utilities to get at least half of their electricity from carbon-free sources by then. Food & Water Watch, a national group calling for country-wide data center moratoria, blasted a press release going after Shapiro to the media after the principles were released: “[This] is a naive effort to placate widespread data center opposition. It won’t work.”
For climate activists, the best case scenario right now may be blue states taking up bills to regulate the sector as opposed to a blanket moratorium, where the push for a pause functions as leverage. Often these bills are focused on energy costs for consumers, not environmental protection, like in Oregon where last year legislators enacted a measure requiring data center companies to pay for their share of electricity demand. In Vermont this week, the state legislature passed a similar bipartisan data center bill focused on energy affordability, with some restrictions on fossil fuel generation. (Republican Gov. Phil Scott is expected to sign it.)
Indeed, the climate movement’s smartest play could be to push legislation requiring facilities not only pay for their power but ensure it is zero-carbon emissions. So far, Democrat-led bills that would accomplish this goal gained steam this year in other states but struggled to become law before the end of the legislative session too (Washington, for example).
In Illinois, the bill is known as the POWER Act, but despite lots of Democratic support behind it, it’s languishing in committee limbo ahead of the end of legislative session this week. One can imagine Illinois Gov. J.B. Pritzker getting a bill like the POWER Act into law and then running for president as The Guy Who Made Data Centers Cleaner. Heaven knows that’s why folks like Hannah Flath, climate communications manager for the Illinois Environmental Council, are so bullish on the bill. “I think it’ll eventually become law. Just not this session.”
I asked Flath why her organization was so focused on this bill as opposed to a data center moratorium. “We just don’t think it is politically feasible. Especially given how attractive these things are to our governor and some state lawmakers,” she said. “Currently, I view climate work as harm reduction work. This is perhaps a cynical view to have but that’s unfortunately where we’re at. How can we ensure changes happening in the world bring more benefits than they do harms?”
But Flath said that as a push for moratoria grows, it provides pressure on state policymakers to act: “What we’re offering state legislators now is a middle ground solution.”
I suppose for now, we’ll have to see if this side can come together on any solution – let alone a middle ground.
And more of the week’s top news around development fights.
1. Jefferson County, Alabama – A law firm is alleging that police in the city of Birmingham retaliated against a woman for suing developers of a data center. It might just be a wake-up call for data center developers.
2. Mason County, Kentucky – This county is the site of yet another eminent domain debacle and I suggest you pay attention to it because it’s now represented by an outgoing congressman with nothing left to lose: Thomas Massie.
3. Montgomery County, Missouri – A Google data center project celebrated by the White House is facing harsh local backlash.
4. Iron County, Utah – Yet another county is banning data centers and solar energy.
5. Oconto County, Wisconsin – At least one developer is definitely thanking their lucky stars for state primacy over renewable permitting in the Badger State.
A conversation with Travis Fisher of the Cato Institute.
This week’s conversation is with Travis Fisher, an energy policy analyst with the Cato Institute and one of my favorite people to chop it up with on Energy Twitter. I reached out to Fisher for a conversation about how he’s approaching the data center boom as a free market-minded wonk at a time when other figures on the so-called Right are calling for strict regulations on the sector. What I learned is that folks like Fisher are concerned about the scale of the buildout too, but their ideas and approaches wildly differ from the Tucker Carlsons of the world.
As always, our conversation was edited for length and clarity.
What’s your approach to the data centers debate in the Republican camp right now?
My bias is towards free markets. So as long as we’re talking about voluntary exchanges with property rights, it's fair game.
The sticking points for me are: is cost being socialized? Is there too much special treatment, like tax credits or overt subsidies or eminent domain? All of that stuff is problematic to me.
There is a world where we have massive expansion and it's still very consistent with my view of how things ought to go. But I’m not sure I love the approach I’ve seen on the siting end of things. There’s stories of private land takings, or private companies taking land, and that’s very problematic for me.
I see this as a huge growth area and a huge opportunity, so the idea of pausing even for a year feels like the wrong way to go about it. There’s a lot of parallels where folks want to slow things down but in hindsight it feels like a silly thing to stop progress.
[And] it really shines a light on conservatives versus free-market people. They’re not always the same.
How do you view data centers as an opportunity for building out the energy grid?
There’s two conversations here, really: improving the grid as we know it and expanding access to power off-grid.
Data centers are very large customers if we can free up supply to increase the quantity on the grid and then reduce average costs. That’s a whiteboard approach. But I can spend all day on why the whiteboard approach to economics on the power grid does not show up in reality. If you reduce average costs, what incentives do utilities have to pass lower costs onto consumers? They’ll just maximize shareholder returns. I don’t like the status quo utility model but there is a white board approach where if we believe in a natural monopoly thesis, then an expansion on the demand side moves you further down a downward sloping supply curve.
If you buy this argument, there’s an opportunity to cut costs. But I’m skeptical of that argument.
You’ve advocated for consumer regulated electricity reform in this situation. How does that relate?
This is the second prong, the off-grid solution. We have customers that want to move faster than the grid allows. We have a very regulated grid which is not compatible with the fast growth these customers want. And they have an enormous willingness to pay for that speed-to-power, so in terms of their opportunity cost, this sets up an opportunity to essentially build new power networks. If you’re a private utility and not a public utility, public utility regulations should not apply to you. And if you can build a private utility without oversight from Public Utility Commissioners or FERC, you’re free to innovate. Then this all becomes a new sector we can transfer learnings from back to the grid.
This idea – which I’ve seen you describe to my colleague Matthew Zeitlin – does it require policy change?
Yes, but it depends on what state. Ohio, Utah, and Oklahoma, maybe West Virginia… Those states already have systems kind of like this. It’s why you may be seeing private [energy and data center] networks there. In Ohio, at the New Albany site. In Utah, which is its own thing. But there are already state laws trending in this direction.
My view on this is you need a reform at the state level saying if you’re a private utility, you’re not under the jurisdiction of the PUC. At the federal level, it would mean the regs that do not apply to the bulk system do not apply to you.
So then, is your goal to create “power islands” here off grid using the free market?
The goal is to be as pro-consumer and free market and fast-moving as possible. This policy change would open that avenue and make it clear this is a greenlit activity. A thing that can happen and investors have certainty they won’t be side-swiped later.
I think we’re approaching the point where a lot of observers recognize the status quo is untenable. They say we had [utility] restructuring and now the status quo is untenable after restructuring, so let’s re-vertically integrate utilities or nationalize them. Those are all terrible, terrible, awful options. But the moment is so dire that a lot of bad ideas are on the table. I’m trying as hard as I can to parse the free market ideas from pro-utility ideas.
Vertical integration – where’s the momentum against that situation? I understand you’re trying to combat monopoly here, without being too heavy-handed from a regulatory level.
Even in a vertically integrated space, there’s pro-consumer reforms and consumer choice. Consumer-regulated electricity would do that in a clean and aggressive way but there is plenty you can do to tinker. How do we fight back against incumbent utilities? There’s many answers to that question but the last thing we should do responding to data centers is give them more control.
For example, the one thing we absolutely cannot do is reintrench the franchise. If a state says nobody else can be a utility in this state, why is that even a thing in the year 2026? That is backwards thinking, 100-year-old thinking we need to move on from.
My last question, since you keep bringing this conversation to utilities, is… why are we seeing so much upset in the utility sector?
I can only answer on my own behalf: They are monopolies. Since when was a monopoly industry friendly to free-market thinking? It’s historically been friendly to conservatives, because of the status quo bias, and I’m trying as best as I can to cleave the conservatives off being pro-utility because if you’re free market and conservative you shouldn’t like what they’re doing.
If you’re pro-consumer, you don’t like whatever the incumbent set up is. There’s an element of both the left and the right seeing this.
As rates go up, and as problems persist, we’re not getting anything more even though we’re paying more. It’s not a good environment for the utilities, who want to keep things the way they are.