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Doug Burgum is, by all accounts, a normie. Compared to some of the other picks for incoming President Trump’s cabinet, the former North Dakota governor is well respected by his political colleagues; even many of the Democrats on the Energy and Natural Resources Committee seemed chummy with the former software executive during his hearing on Thursday, praising his support of the outdoor recreation economy and his conservation efforts in his state. As if to confirm the low stakes of the hearing, Burgum used his closing remarks not as a final pitch of his qualifications — but to invite his interrogators to a Fourth of July party at the Theodore Roosevelt Presidential Library.
That isn’t to say that the hearing doesn’t have consequences — or revelations about what can be expected from the all-but-certain-to-be-confirmed Interior secretary and future head of Trump’s National Energy Council. For many in the renewables space — particularly those in the wind industry — there was little in the way of reassurances that Burgum would temper his boss’ opposition to “windmills.” Additionally, the future Interior secretary dodged questions seeking reassurance about his commitment to protecting federal lands.
Below are some of the biggest takeaways from Thursday’s confirmation hearing.
Burgum referenced concerns about the “baseload” of the grid more than 15 times during the hearing, primarily as a way to oppose the buildout of renewable energy. “We’re short of electricity in this country, and we have to make sure that we have a balance,” he told Senator Catherine Cortez Masto, a Nevada Democrat, citing a standard Republican talking point about how the grid needs safeguards because “the sun doesn’t always shine and the wind doesn’t always blow.” When pressured about how intermittent energy sources are used in combination with storage, he added that we’re still “a few years out” from such technologies and warned that in the meantime, there would be “more and more brownouts and blackouts because we aren’t going to have the balance in the grid.”
“I don’t want the word ‘baseload’ to be code for no renewables,” Angus King, the Independent Senator from Maine, later followed up. Burgum protested against that characterization — “It’s not for any political reasons that I distinguish [between intermittent and baseload], it’s just because of the physics of the grid” — but King wasn’t satisfied. “In your case, in North Dakota, 35% of your electricity comes from wind power,” King said. “I presume that your grid works well?”
Burgum stumbled in his answer: “It’s super stressed, as it is around the country,” he said. (In fact, transmission bottlenecks seem to be the bigger issue in the state.) He went on to say that renewables plus storage equals a baseload at a “much higher cost” than traditional energy sources like oil and gas.
“It sounds like no more renewables,” King rejoined. “I don’t think that’s a sustainable path for this country, and it’s certainly not a way of meeting the challenge of climate change.”
One carbon-free source of electricity emerged as a winner of the baseload fight, however: nuclear power. “I’m glad to hear you talk about baseload,” Republican Senator James Risch of Idaho told Burgum, “because when you’re talking about nuclear, you’re talking about baseload.” Burgum also called solar and geothermal “big opportunities” in Utah.
Ahead of Thursday’s confirmation hearing, Danielle Murray, the founder of the Public Lands Center, issued a statement arguing that if Burgum did not “[reject] any and all attempts to sell-off or give away our nation’s public lands,” it would be “disqualifying.”
She and other public land advocates are not likely to be satisfied with the answers they heard, however. Burgum responded positively to an opening question from Republican Senator Mike Lee of Utah about restricting the size of National Monuments, noting that “a state like yours … already has over 60% of its land in public lands.” The Energy and Natural Resources Committee’s ranking member, Democratic Senator Martin Heinrich of New Mexico, followed up on that point, asking Burgum how he plans to “stay true to our conservation history” given the mounting attempts by Lee and his colleagues to “somehow, in a wholesale way, divest of our public lands.”
Burgum remained noncommittal: “I think there is certainly the opportunity for us to find that balance going forward,” he said again.
Burgum promised senators from Montana and Wyoming that he opposed a “blanket approach of trying to block” new coal development. “We have an opportunity to decarbonize, to produce clean coal, and with that produce reliable baseload for this country,” he said.
Why is that so important? “Without baseload, we’re going to lose the AI arms race to China,” Burgum said.
Wind was another hot topic during Burgum’s confirmation hearing. King pointed out that North Dakota is a major wind-producing state, and asked if the Interior nominee would talk to President Trump about “the fact that wind has its virtues and can contribute significantly” to America’s energy supply.
Burgum was resistant. If wind projects “make sense, and they’re already in law, then they’ll continue,” he allowed. “I think President Trump has been very clear in his statements that he’s concerned about the significant amount of tax incentives that have gone towards some forms of energy that have helped exacerbate this imbalance that we’re seeing right now.”
Risch celebrated Burgum’s skepticism of wind, rooting for the end of the Lava Ridge wind farm, which Heatmap’s Jael Holzman has reported Trump may kill on day one. “My good friend Senator King and I have different views on windmills — and bless you for taking the windmills, you can have them all,” Risch offered during his allotted time. “We don’t want them in Idaho. We hate windmills in Idaho.” (In 2023, wind accounted for about 15% of Idaho’s electricity generation.)
But if there was something Republicans on the Energy and Natural Resources Committee hated even more than wind, it was bears. Senator Daines of Montana specifically requested Burgum’s commitment to delisting grizzlies from the Endangered Species List, and he got what he was looking for. “I’m with you,” Burgum said. “We should be celebrating when species come off the endangered species list, as opposed to fighting every way we can to try to keep them on that list.”
Risch was also excited about this promise. “We don’t want grizzly bears [in Idaho],” he said. “They kill people. You know, the federal government already gave us wolves.”
Grizzlies weren’t the only bears on the chopping block. Republican Senator Lisa Murkowski of Alaska slammed the Biden administration’s Interior for not finishing its revised incidental take regulations for North Slope oil and gas activities — that is, the gas industry’s exemption to the Marine Mammal Protection Act of 1972 which otherwise prohibits the harassing, hunting, capturing, or killing of protected animals, including polar bears. “I need your commitment that you’ll work with Alaskans, particularly the Inupiat people up there, in the North Slope Borough, on basically all things polar bear,” Murkowski said.
“We’ll be happy to do that,” Burgum confirmed.
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Amarillo-area residents successfully beat back a $600 million project from Xcel Energy that would have provided useful tax revenue.
Power giant Xcel Energy just suffered a major public relations flap in the Texas Panhandle, scrubbing plans for a solar project amidst harsh backlash from local residents.
On Friday, Xcel Energy withdrew plans to build a $600 million solar project right outside of Rolling Hills, a small, relatively isolated residential neighborhood just north of the city of Amarillo, Texas. The project was part of several solar farms it had proposed to the Texas Public Utilities Commission to meet the load growth created by the state’s AI data center boom. As we’ve covered in The Fight, Texas should’ve been an easier place to do this, and there were few if any legal obstacles standing in the way of the project, dubbed Oneida 2. It was sited on private lands, and Texas counties lack the sort of authority to veto projects you’re used to seeing in, say, Ohio or California.
But a full-on revolt from homeowners and realtors apparently created a public relations crisis.
Mere weeks ago, shortly after word of the project made its way through the small community that is Rolling Hills, more than 60 complaints were filed to the Texas Public Utilities Commission in protest. When Xcel organized a public forum to try and educate the public about the project’s potential benefits, at least 150 residents turned out, overwhelmingly to oppose its construction. This led the Minnesota-based power company to say it would scrap the project entirely.
Xcel has tried to put a happy face on the situation. “We are grateful that so many people from the Rolling Hills neighborhood shared their concerns about this project because it gives us an opportunity to better serve our communities,” the company said in a statement to me. “Moving forward, we will ask for regulatory approval to build more generation sources to meet the needs of our growing economy, but we are taking the lessons from this project seriously.”
But what lessons, exactly, could Xcel have learned? What seems to have happened is that it simply tried to put a solar project in the wrong place, prizing convenience and proximity to an existing electrical grid over the risk of backlash in an area with a conservative, older population that is resistant to change.
Just ask John Coffee, one of the commissioners for Potter County, which includes Amarillo, Rolling Hills, and a lot of characteristically barren Texas landscape. As he told me over the phone this week, this solar farm would’ve been the first utility-scale project in the county. For years, he said, renewable energy developers have explored potentially building a project in the area. He’s entertained those conversations for two big reasons – the potential tax revenue benefits he’s seen elsewhere in Texas; and because ordinarily, a project like Oneida 2 would’ve been welcomed in any of the pockets of brush and plain where people don’t actually live.
“We’re struggling with tax rates and increases and stuff. In the proper location, it would be well-received,” he told me. “The issue is, it’s right next to a residential area.”
Indeed, Oneida 2 would’ve been smack dab up against Rolling Hills, occupying what project maps show would be the land surrounding the neighborhood’s southeast perimeter – truly the sort of encompassing adjacency that anti-solar advocates like to describe as a bogeyman.
Cotton also told me he wasn’t notified about the project’s existence until a few weeks ago, at the same time resident complaints began to reach a fever pitch. He recalled hearing from homeowners who were worried that they’d no longer be able to sell their properties. When I asked him if there was any data backing up the solar farm’s potential damage to home prices, he said he didn’t have hard numbers, but that the concerns he heard directly from the head of Amarillo’s Realtors Association should be evidence enough.
Many of the complaints against Oneida 2 were the sort of stuff we’re used to at The Fight, including fears of fires and stormwater runoff. But Cotton said it really boiled down to property values – and the likelihood that the solar farm would change the cultural fabric in Rolling Hills.
“This is a rural area. There are about 300 homes out there. Everybody sitting out there has half an acre, an acre, two acres, and they like to enjoy the quiet, look out their windows and doors, and see some distance,” he said.
Ironically, Cotton opposed the project on the urging of his constituents, but is now publicly asking Xcel to continue to develop solar in the county. “Hopefully they’ll look at other areas in Potter County,” he told me, adding that at least one resident has already come to him with potential properties the company could acquire. “We could really use the tax money from it. But you just can’t harm a community for tax dollars. That’s not what I’m about.”
I asked Xcel how all this happened and what their plans are next. A spokesperson repeatedly denied my requests to discuss Oneida 2 in any capacity. In a statement, the company told me it “will provide updates if the project is moved to another site,” and that “the company will continue to evaluate whether there is another location within Potter County, or elsewhere, to locate the solar project.”
Meanwhile, Amarillo may be about to welcome data center development because of course, and there’s speculation the first AI Stargate facility may be sited near Amarillo, as well.
City officials will decide in the coming weeks on whether to finalize a key water agreement with a 5,600-acre private “hypergrid” project from Fermi America, a new company cofounded by former Texas governor Rick Perry, says will provide upwards of 11 gigawatts to help fuel artificial intelligence services. Fermi claims that at least 1 gigawatt of power will be available by the end of next year – a lot of power.
The company promises that its “hypergrid” AI campus will use on-site gas and nuclear generation, as well as contracted gas and solar capacity. One thing’s for sure – it definitely won’t be benefiting from a large solar farm nearby anytime soon.
And more of the most important news about renewable projects fighting it out this week.
1. Racine County, Wisconsin – Microsoft is scrapping plans for a data center after fierce opposition from a host community in Wisconsin.
2. Rockingham County, Virginia – Another day, another chokepoint in Dominion Energy’s effort to build more solar energy to power surging load growth in the state, this time in the quaint town of Timberville.
3. Clark County, Ohio – This county is one step closer to its first utility-scale solar project, despite the local government restricting development of new projects.
4. Coles County, Illinois – Speaking of good news, this county reaffirmed the special use permit for Earthrise Energy’s Glacier Moraine solar project, rebuffing loud criticisms from surrounding households.
5. Lee County, Mississippi – It’s full steam ahead for the Jugfork solar project in Mississippi, a Competitive Power Ventures proposal that is expected to feed electricity to the Tennessee Valley Authority.
A conversation with Enchanted Rock’s Joel Yu.
This week’s chat was with Joel Yu, senior vice president for policy and external affairs at the data center micro-grid services company Enchanted Rock. Now, Enchanted Rock does work I usually don’t elevate in The Fight – gas-power tracking – but I wanted to talk to him about how conflicts over renewable energy are affecting his business, too. You see, when you talk to solar or wind developers about the potential downsides in this difficult economic environment, they’re willing to be candid … but only to a certain extent. As I expected, someone like Yu who is separated enough from the heartburn that is the Trump administration’s anti-renewables agenda was able to give me a sober truth: Land use and conflicts over siting are going to advantage fossil fuels in at least some cases.
The following conversation was lightly edited for clarity.
Help me understand where, from your perspective, the generation for new data centers is going to come from. I know there are gas turbine shortages, but also that solar and wind are dealing with headwinds in the United States given cuts to the Inflation Reduction Act.
There are a lot of stories out there about certain technologies coming out to the forefront to solve the problem, whether it’s gas generation or something else. But the scale and the scope of this stuff … I don’t think there is a silver bullet where it’s all going to come from one place.
The Energy Department put out a request for information looking for ways to get to 3 gigawatts quickly, but I don’t think there is any way to do that quickly in the United States. It’s going to take work from generation developers, batteries, thermal generation, emerging storage technologies, and transmission. Reality is, whether it is supply chain issues or technology readiness or the grid’s readiness to accept that load generation profile, none of it is ready. We need investment and innovation on all fronts.
How do conflicts over siting play into solving the data center power problem? Like, how much of the generation that we need for data center development is being held back by those fights?
I do have an intuitive sense that the local siting and permitting concerns around data centers are expanding in scope from the normal noise and water considerations to include impacts to energy affordability and reliability, as well as the selection of certain generation technologies. We’ve seen diesel generation, for example, come into the spotlight. It’s had to do with data center permitting in certain jurisdictions, in places like Maryland and Minnesota. Folks are realizing that a data center comes with a big power plant – their diesel generation. When other power sources fall short, they’ll rely on their diesel more frequently, so folks are raising red flags there. Then, with respect to gas turbines or large cycle units, there’s concerns about viewsheds, noise and cooling requirements, on top of water usage.
How many data center projects are getting their generation on-site versus through the grid today?
Very few are using on-site generation today. There’s a lot of talk about it and interest, but in order to serve our traditional cloud services data center or AI-type loads, they’re looking for really high availability rates. That’s really costly and really difficult to do if you’re off the grid and being serviced by on-site generation.
In the context of policy discussions, co-location has primarily meant baseload resources on sites that are serving the data centers 24/7 – the big stories behind Three Mile Island and the Susquehanna nuclear plant. But to be fair, most data centers operational today have on-site generation. That’s their diesel backup, what backstops the grid reliability.
I think where you’re seeing innovation is modular gas storage technologies and battery storage technologies that try to come in and take the space of the diesel generation that is the standard today, increasing the capability of data centers in terms of on-site power relative to status quo. Renewable power for data centers at scale – talking about hundreds of megawatts at a time – I think land is constraining.
If a data center is looking to scale up and play a balancing act of competing capacity versus land for energy production, the competing capacity is extremely valuable. They’re going to prioritize that first and pack as much as they can into whatever land they have to develop. Data centers trying to procure zero-carbon energy are primarily focused on getting that energy over wires. Grid connection, transmission service for large-scale renewables that can match the scale of natural gas, there’s still very strong demand to stay connected to the grid for reliability and sustainability.
Have you seen the state of conflict around renewable energy development impact data center development?
Not necessarily. There is an opportunity for data center development to coincide with renewable project development from a siting perspective, if they’re going to be co-located or near to each other in remote areas. For some of these multi-gigawatt data centers, the reason they’re out in the middle of nowhere is a combination of favorable permitting and siting conditions for thousands of acres of data center building, substations and transmission –
Sorry, but even for projects not siting generation, if megawatts – if not gigawatts – are held up from coming to the grid over local conflicts, do you think that’s going to impact data center development at all? The affordability conversions? The environmental ones?
Oh yeah, I think so. In the big picture, the concern is if you can integrate large loads reliably and affordably. Governors, state lawmakers are thinking about this, and it’s bubbling up to the federal level. You need a broad set of resources on the grid to provide that adequacy. To the extent you hold up any grid resources, renewable or otherwise, you’re going to be staring down some serious challenges in serving the load. Virginia’s a good example, where local groups have held up large-scale renewable projects in the state, and Dominion’s trying to build a gas peaker plant that’s being debated, too. But in the meantime, it is Data Center Alley, and there are gigawatts of data centers that continue to want to get in and get online as quickly as possible. But the resources to serve that load are not coming online in time.
The push toward co-location probably does favor thermal generation and battery storage technologies over straight renewable energy resources. But a battery can’t cover 24/7 use cases for a data center, and neither will our unit. We’re positioned to be a bridge resource for 24/7 use for a few years until they can get more power to the market, and then we can be a flexible backup resource – not a replacement for the large-scale and transmission-connected baseload power resources, like solar and wind. Texas has benefited from huge deployments of solar and wind. That has trickled down to lower electricity costs. Those resources can’t do it alone, and there’s thermal to balance the system, but you need it all to meet the load growth.