Briefing 02/06/2025

Feb 6

This week's roundup: Leslie Beyer’s appointment to the Interior Department signals a fossil fuel-friendly shift in federal land policy. In North Carolina, a new utilities commission chair could bring

Former Energy Council CEO Leslie Beyer Appointed to Interior Department Post

Leslie Beyer, former CEO of the Workforce & Technology Council, has been appointed as Assistant Secretary of Land and Minerals Management at the U.S. Department of the Interior. Once confirmed by the Senate, she will oversee key agencies managing federal lands, offshore resources, and mining regulations.

Why it matters:

Federal Land: Beyer’s ties to the oil and gas sector suggest a more industry-friendly approach to federal land use and energy policies, potentially easing data center energy access and permitting.
Carbon Goals: Greater support for fossil fuel development on federal lands may slow renewable energy expansion, challenging data center sustainability strategies and carbon reduction goals.

Big Picture: Beyer’s appointment aligns with Project Stargate’s goal of using federal lands for data centers but may generate tensions between operators and environmental groups due to her support of fossil fuel.

New Interim Chairman Announced for North Carolina Utilities Commission

NCUC Chair Charlotte Mitchell resigned on January 28, partly due to her support for replacing Duke Energy’s coal plants with gas-turbine power plants instead of renewables. Gov. Josh Stein appointed Floyd B. McKissick, Jr. as interim chair through 2029, with solar industry veteran Steve Levitas filling his former seat until June 30, 2025. The new NCUC will take part in North Carolina’s debates on data centers’ impact on grid capacity.

Projects in the area

North Carolina is experiencing an expansion of data centers with facilities of hyperscalers. These are the principal facilities under development:

Microsoft Boyd Farms – 100 MW
Microsoft Lyle Creek – 260 MW
CyberFortress Solutions Innovation Park – 120 MW
Powerhouse Data Centers' Charlotte – 240 MW

Why it matters

Renewable Energy: With Steve Levitas on the NCUC, data centers may see increased focus on sustainability initiatives, potentially shifting energy procurement strategies toward more renewable options.
Data Center Grid Impact: Duck Energy’s 2 GW data center power deal highlights the tension between renewable goals and Duke’s expansion. Environmental groups warned that Duke’s expansion of natural gas could lock in fossil fuel dependence in North Carolina.
- Higher regulatory scrutiny of Duke’s plans could impact its ability to meet growing data center demand.

Bottom line: Despite concerns over grid capacity, hyperscalers benefited from the previous NCUC’s rulings on Duck Energy’s coal phase-out. However, a shift toward stricter carbon-free transition scrutiny, coupled with rising environmental activism, could disrupt data centers energy plans.

Virginia Lawmakers Debate Data Center Energy Costs and Transparency

Virginia legislators are proposing measures to regulate the growing energy demands of data centers and protect ratepayers from rising electricity costs.

Efforts include separate rate classifications for data centers and increased transparency in energy decision-making. However, these initiatives have faced strong opposition from the data center industry and utility companies, leading to significant amendments or failures in committee votes.

Why It Matters:

Financial Impact on Data Centers: If new regulations pass, data centers operating in Virginia could face higher electricity costs and increased regulatory scrutiny, affecting profitability and expansion plans.
Grid Reliability and Energy Strategy: The rapid increase in power demand from data centers poses challenges for grid stability and energy pricing, which could impact long-term planning for facility locations and infrastructure investment.

What’s next? Virginia is the epicenter of anti-data center activism, with growing regulatory debates in the state legislature highlighting their momentum and potential influence on policies in other states.