Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Podcast

Data Centers Are Creating a New Kind of Battery Monster

Rob checks in with Near Horizon Group’s Peter Freed about the AI boom’s power needs.

•
A Meta data center.
Heatmap Illustration/Getty Images

Just a handful of tech companies plan to spend nearly $700 billion combined this year investing in artificial intelligence — and much of that money will go to data centers and the energy used to keep them on. How is this boom transforming the American energy system, and what does it mean for clean energy?

On this episode of Shift Key, Rob is joined by Peter Freed, a founding partner at the Near Horizon Group and the former director of energy strategy at Meta from 2014 to 2024. They discuss why data center developers opt for certain energy sources over others, why AI is driving an unprecedented off-grid natural gas boom, and why batteries now pair especially well with gas. Yikes!

This conversation was originally recorded for a webinar hosted by Heatmap Pro. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.

Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.

You can also add the show’s RSS feed to your podcast app to follow us directly.

Here is an excerpt from their conversation:

Robinson Meyer: We know there’s this giant capex surge coming from the hyperscalers. I mean, it’s reached the point now where tech companies’ stocks suffer when they announce investment because they seem to be in an arms race of spending on data centers. We were just talking about the behind the meter gas boom. There’s a lot of renewable energy developers in this audience, or battery developers. How should they be thinking about this moment and what do they need to be doing to make their projects or to work with data center developers in the most attractive way?

Peter Freed: I’ll bring us back a couple of minutes to when I said, look, if you’re a data center developer and you’re building gas plus storage and you’re thinking of that as a pretty complicated thing, someone is really going to have to work out on explaining why the introduction of a variable renewable resource into that configuration is worthwhile.

And obviously there are people that believe that that’s true. Intersect believed that that was true and it worked out really, really well for them. There are ways to tell that story. And I think that the renewable energy development community probably still has some work to do to help explain that. So that’s sort of thing number one — like, the closer you get to the operations of the data center facility, the more work you’re going to have to do to explain why you believe that the integration of renewables into that makes sense.

Now, you can remove yourself somewhat from the actual operations of the facility. And this is where we get into bring your own capacity conversations. And you know, there’s been some really interesting stuff sort of talking about, okay, maybe there is a utility which has sufficient wires capacity as — and like, there’s enough room on the transmission lines to plug a data center in and turn the lights on, but they don’t have enough market capacity. Like, they don’t have enough of the financial products required by the RTO that they operate in to serve that facility. And so that can become an interesting opportunity for renewables in particular, storage in particular, trying to figure out how to put together these bring your own capacity products to serve data centers.

And I’ll say, you know, when I first heard about these bring your own capacity opportunities, I thought that they were pretty niche. I was like, okay, well, you know, a utility has sufficient wires capacity to serve a giant data center, but they don’t have capacity in the market. Like, that feels like something that’s not going to happen that often. But apparently, I mean, I was incorrect.

You can find a full transcript of the episode here.

Mentioned:

Breaking Down the Doomsday AI Memo That Spooked Markets

Inside Form Energy’s Big Google Data Center Deal

The New York Times on AI’s polling problems

Previously on Shift Key: What’s Really Holding Back New Data Centers

This episode of Shift Key is sponsored by …

Heatmap Pro brings all of our research, reporting, and insights down to the local level. The software platform tracks all local opposition to clean energy and data centers, forecasts community sentiment, and guides data-driven engagement campaigns. today to see the premier intelligence platform for project permitting and community engagement. Book a demo today to see the premier intelligence platform for project permitting and community engagement.

Music for Shift Key is by Adam Kromelow.

🔒

You’ve reached your free article limit

Subscribe to Heatmap News for unlimited access to daily energy and climate coverage.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Politics

Miners Struck Gold With the Senate Permitting Bill

The proposal resolves an issue that has bedeviled the industry since 2022.

American mining.
Heatmap Illustration/Getty Images

Is Rosemont about to be BAAJA blasted away?

In a 2022 decision formally titled Center for Biological Diversity v. U.S. Fish & Wildlife Service, the Ninth Circuit Court of Appeals ruled that Rosemont Copper Company its claim under the General Mining Act of 1872 did not give the company license to dump literally millions of tons of waste rock on adjacent Forest Service land. Though Rosemont argued that the use fell under the law’s provisions for “mill sites” on public lands used for mining, the court found that because the parcel in question lacked valid mining claims of its own, the Mining Act did not justify its use under its own permissive regime.

Keep reading...Show less
Yellow
Spotlight

The New Push for Underwater Data Centers

Exploratory projects are making a splash in Maine and Alaska.

Wires and water.
Heatmap Illustration/Getty Images

A legal brawl is brewing over what could be the nation’s first underwater data centers.

Two subsidiaries of a new LLC named DeepGreen have applied for “preliminary” permits from the Federal Energy Regulatory Commission that would give four years of permission for studies and analysis towards constructing underwater data centers off remote coastlines in Maine and Alaska. The data centers as proposed would be powered entirely by tidal energy, as in, the power of waves themselves – a technological innovation from hydropower still being piloted around the world. Project descriptions submitted to FERC lay out what these data centers would look like in broad strokes: hundreds of hydrokinetic turbines, dozens of underwater “data center pods,” and miles of subsea cable. The permits would not authorize construction, which would need its own lengthy review process. But these early green lights would tee both areas up for years of potential conflict over hypotheticals that feel real to those on the ground.

Keep reading...Show less
Yellow
Hotspots

The Solar Opponents Begging Trump to Intervene in Michigan

And more of the week’s biggest fights around project development

The United States.
Heatmap Illustration/Getty Images

1. Ottawa County, Michigan – A congressional district House Democrats are targeting for control of the Lower Chamber is now a battleground over solar development on farmland, and I’m waiting to see if President Trump gets involved.

  • On Sept. 24, the Michigan township of Zeeland wrote a letter to the president – and reportedly Agriculture Secretary Brooke Rollins – requesting the federal government intervene in the development of RWE’s utility-scale Silver Maple Solar project. The letter to Trump which is public requests the president visit Zeeland and the project site to “provide an opportunity to meet directly with local farmers, business owners, elected officials, and residents who are living with the consequences of the poor policies you are fighting against.”
  • Shortly thereafter, Zeeland Township supervisor Kerri Bosma, who authored the letter, met with Rep. Bill Huizenga and presented him with a copy of the letter. “Thank you for reaching out Kerri and keep up the fight against this Lansing big government takeover!” Huizenga said on Facebook. Huizenga’s office did not respond to a request for comment on how they would support this request further.
  • This is remarkable because local officials are beckoning for Trump to arrive at a time when he’s historically unpopular and Huizenga’s congressional district is one being targeted by the Democratic Congressional Campaign Committee in this year’s midterm elections as a priority. Maybe this is about ginning up partisan red meat, as Huizenga’s opponent, State Sen. Sean McCann, has been publicly supportive of more solar development in agricultural communities.
  • Locals appear most irate with the state permitting primacy law which allows the state regulator, Michigan Public Service Commission, to supersede local opposition toward renewable energy projects. So far, the legality of that power is withstanding court challenges, and it’s unclear to me how the federal government could in any way stall this large solar farm aside from helping out in that legal effort on behalf of localities.
  • Clearly, RWE is confident they can go ahead – they just resubmitted their application to build the project with the MPSC, citing the primacy law’s survival in the courts.

2. Texas – The Lone Star State sure is action-packed right now, huh? Let’s break down a few of the most important fights.

Keep reading...Show less
Yellow