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In today’s newsletter, we take a closer look at how newly elected Democratic governors could slow down data center development.
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DATA CENTERS UNDER THREAT:
Data center projects face challenges in states where newly elected Democratic governors have vowed to halt or impose restrictions on development.
Voters’ opposition to data centers was evident in Tuesday’s midterm elections. Not only did they support ballot measures that would make developing these projects more difficult, but they also elected Democratic officials who have criticized the industry.
Here are the states where data center development could slow:
Texas: Texans elected Democrat Gina Hinojosa, who has vowed to impose a statewide moratorium on data centers until the state imposes guardrails.
Hinojosa has said legislation should require data center operators to hire union workers, protect water resources, and stop using nondisclosure agreements that limit public access to their projects. She has also vowed to ensure consumers do not pay more for energy due to data centers, and end tax subsidies.
Republican Gov. Greg Abbott earlier this year paused data center development and ordered a statewide audit of projects to collect information on power usage, water consumption, and tax incentives.
The Texas Tribune in September found that the state has at least 596 operating and planned data centers across the state.
Georgia: Governor-elect Keisha Lance Bottoms of Georgia yesterday said she plans to sign an executive order to pause data center developments.
“A lot of data centers are being built in Georgia because of the incentives that have been attached to those data centers. So, of course we’re going to have to take a look at what those agreements entail and determine what our remedies are to enact that pause,” she told CBS.
“I don’t think we’re going to get a lot of pushback across the state. Many local governments have already taken that first step,” Bottoms added.
Ohio: Voters elected Democrat Amy Acton in Ohio. She has called for a moratorium on data centers that don’t meet conditions.
She said those conditions include requiring operators to end nondisclosure agreements, provide their own energy, use union labor, protect air and water quality, and utilize brownfield sites for development.
“I’m very pro business. We are open for business in Ohio, but we’re not for sale and we’re not for exploitation, and that’s the big difference,” Acton said last week on WBNS 10TV.
Data centers played a central role in Ohio’s midterm elections, with the state accounting for the majority of the country’s data center ballot measures.
How is Big Tech reacting? Meta president Dina Powell McCormick told the Wall Street Journal at an event yesterday that the outcome of the midterms could result in more review for new projects.
“What I mean by that is to start new data center build-outs today in the United States will be very challenging,” she said. McCormick noted that the company will have an easier time expanding its existing data centers. She also noted that the company is looking at other countries.
All the rest:
ONE TOWN IN NORTH DAKOTA VOTED ‘YES’ TO DATA CENTERS: Out of the 41 data center ballot measures across the country, one, in a North Dakota town, stood out for earning the support of voters.
Harwood, North Dakota, residents voted against a measure to conduct additional reviews before approving large industrial developments like data centers. Residents voted 75.58% against the measure, with only 24.42% in support.
Applied Digital Corp. plans to build a large data center in town with Oracle Corp., which is scheduled to reach full capacity by 2027.
Applied Digital Corp. president Jason Zhang wrote on X that the measure would have created new barriers to industrial development, including data centers. He noted that the “support comes with responsibility,” adding that they will continue to work and listen to the communities where they build.
OPENAI ANNOUNCES DATA CENTER FRAMEWORK: OpenAI announced a new framework for data center development today in a bid to address the backlash to construction around the country.
Part of the framework assures residents that the AI company will pay for the electricity it uses, protect local resources and prioritize a closed-loop water system, and advertise job opportunities and work with unions to provide training for employment on the campuses.
NOT SO FAST ON THAT IRAN WAR RESOLUTION – BRENT BACK UP NEAR $100: Brent crude prices neared $100 this afternoon as investors further digested the fallout from the midterm elections and what it means for the conflict with Iran.
After plunging Wednesday after the elections and Vice President JD Vance’s post blaming the war for GOP losses, Brent crude prices were above $98 after 3 p.m., an increase of nearly 4% on the day.
There were signs today that the conflict is far from resolved. Iranian forces said that at least five tankers had been damaged in the Strait of Hormuz.
US TO MISS UPCOMING COP31: The U.S. will be absent from the upcoming United Nations annual climate conference for a second consecutive year, with this year’s gathering less than a week away.
A State Department spokesman told Maydeen that the U.S. will not be sending anyone to COP31 in Antalya, Turkey. They noted that the president has withdrawn the U.S. from the Paris Agreement, which is set to take effect on Feb. 27, 2027.
“The Paris Agreement, and other climate agreements, including the UNFCCC, put the United States at an economic disadvantage, harmed U.S. citizens by increasing costs, and steered American taxpayer dollars to countries that do not require, or merit, financial assistance,” the spokesman said.
COP31 is set to begin on Monday in Turkey with Australian climate change and energy minister Chris Bowen serving as the President of Negotiations as part of a joint hosting arrangement.
One of the goals next week is for countries to agree to increase electrification in their economies from the current 20% to 35% by 2035, with that number representing the final share of energy demand from electricity. All countries would need to sign off on the agreement.
Despite the U.S. not attending, the conference will be attracting some high-level officials, including those with the Taliban. It was reported earlier this week that the Taliban will be sending some officials to COP31 as observers, making it the second time the Taliban has attended the summit since retaking Afghanistan.
REVOLUTION WIND NOW FULLY OPERATIONAL DESPITE TRUMP EFFORTS: In an earnings call this morning, Denmark’s Orsted said its 704-megawatt Revolution Wind offshore wind farm south of Rhode Island is fully commissioned and now delivering electricity to Rhode Island and Connecticut. Revolution Wind has been delivering electricity to the New England grid since March but is now generating up to its full capacity.
The Trump administration halted construction on the project twice last year, citing national security concerns. Judges struck down the stop-work orders.
ATTORNEYS GENERAL COMMENT ON EPA EFFORTS TO REPEAL GREENHOUSE GAS LIMITS FOR POWER PLANTS: Attorneys general asked the Environmental Protection Agency to provide additional time to comment on the agency’s proposal to slash all greenhouse gas emission requirements for fossil fuel power plants.
Attorneys general from New York, Arizona, the District of Columbia, Illinois, Maine, Maryland, New Jersey, Oregon, Rhode Island, and Washington asked the agency in late September to extend the comment period from 46 to 90 days. The attorneys also asked to include additional public hearings.
“Prior to repealing regulations targeting one of the largest sources of greenhouse gas emissions, EPA should increase the number of public hearings and hold a combination of in-person and virtual hearings to facilitate public comment and to allow those currently on the waitlist an opportunity to speak,” they wrote.
The public comment period ended on Monday.
In a statement, the EPA told Daily on Energy that the public comment period included two days of public hearings with a total of 145 speakers. The agency said it “looks forward to reviewing and responding to the comments it received.”
RUNDOWN
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[ H/T Washington Examiner ]
