Good morning. By the spring of 2025, US data center developers had announced around 10 GW of planned behind-the-meter gas. Now, that figure has surpassed 100 GW—that’s roughly equal to the power demand of 10 New York Cities. 🤯
— Molly, Carrie, and the Energy Central editorial team
Is Compliance Enough to Protect Your Grid? The grid is becoming more connected and complex. Get practical guidance on strengthening your IT and OT cyber posture before new risks become bigger problems. Register Now
Red states are leading the clean energy charge—but nationwide, gas is on the rebound.
In case you didn’t know, some red states are going green: Republican-led states hold eight of the top 10 spots for new solar installations, according to an SEIA report published last month.
It’s not just solar. The vast majority (76%) of existing, planned, and under construction clean power capacity sits in Republican congressional districts (with Texas leading the way).
Why? “These states have really had an openness on energy types,” Kenneth Sercy, senior program analyst at the think tank Niskanen Center, told Energy Central. Whether it’s a gas plant or solar farm, he noted, Republican officials have sought locally produced power to add jobs and lower bills.
This openness lends itself to more favorable permitting processes for fossil fuels and renewables. Plus, these states have taken the most advantage of the tax breaks from the Biden administration’s Inflation Reduction Act.
Some other ways that Trump-voting states have streamlined the clean energy buildout:
Indiana: Hoosier communities can receive assistance in writing clear requirements for wind and solar projects. This attracts developers while retaining local control, the Niskanen Center said in a report.
Arizona: The state offers sales tax exemptions for solar and wind equipment.
Texas: In a program that ran from 2005-2014, TX lawmakers ordered the state PUC to incentivize utility-scale wind development in certain regions—along with the thousands of miles of transmission needed to send that power throughout the state. Plus, as decided by the Texas Attorney General in 2023, counties can’t ban commercial solar projects.
Blue states are beginning to catch up: In February, Delaware Gov. Matt Meyer signed an executive order capping clean energy permitting timelines at six months. And as of Oct. 1, Massachusetts cities must offer an accelerated 12-month permitting process for small-scale renewables.
Yes, but: As both red and blue states make it easier to build, the balance is tilting away from clean energy and toward gas.
Renewables currently represent most planned US capacity, but the clean energy pipeline has fallen from a 2024 peak of 171 GW to 131 GW (as of June). Meanwhile, planned gas capacity has skyrocketed in recent months amid the data center frenzy.
The takeaway: Clean energy has proven itself economically across partisan lines. Now, “what's at stake is whether we continue to build off of that success,” said David Villagrana, a federal tax attorney at the Environmental Defense Fund.
That’s largely up to the winning candidates this midterm season and beyond—they’ll drive key energy decisions from the local to the federal levels. But right now, the grid’s future is looking murky.
“I would love to see red states continue to lead on this, but whether they will is a question mark,” said Jacob Corvidae, senior principal at RMI. 🔮
Share your utility’s weather-related challenges and help identify technology gaps and opportunities to strengthen grid resilience. Complete the 5-minute survey
San Francisco claims that a city grid takeover would cost $3.4B…but PG&E puts the price tag 6X higher.
The context: Frisco officials have spent a century trying to buy PG&E’s assets and create a city-run electric utility, claiming it would deliver more affordable and reliable service.
Sticker shock: Now, the city is clashing with PG&E over the cost to do so. The utility says that a takeover would run San Francisco $22.5B, compared with the city’s $3.4B estimate. The far steeper figure includes nearly $9B in damages for lost business and grid separation.
PG&E’s POV: “A government takeover of our grid is not the right solution for our San Francisco customers,” PG&E CEO Patti Poppe said in a statement. “We have decades of specialized expertise operating San Francisco’s complex electric system. And now our filing shows that a takeover doesn’t make financial sense for customers.”
The city’s response: “A utility with a financial interest in protecting its monopoly doesn’t have the last word on what its assets are worth. There’s a process to determine the true cost,” City Attorney David Chiu told KQED. That figure likely falls somewhere between the two estimates…and the final say is up to the CPUC, who’s expected to decide sometime next year.
And if a deal doesn’t work out? SF could harness eminent domain to force a takeover.
The data center boom is forcing utilities to make big bets. What happens if they’re wrong?
The Goldilocks problem: Utilities across the country are facing floods of data center service requests…but it’s unclear whether they’ll actually pan out. That creates a “Goldilocks” situation: Overbuilding could lead to stranded assets, but underbuilding could mean “missing the opportunity for growth,” said Chris Sturgill, a partner at Energy Central sponsor ScottMadden.
The time crunch: A data center might take a few years to build, while new grid infrastructure can take closer to a decade. Utilities are racing to close this gap with standardized designs and phased power delivery, among other tools.
Hedging the risk: To avoid stranded assets, utilities are vetting projects more rigorously upfront, weighing them in load forecasts by level of maturity, and updating data more frequently. Sturgill’s advice to utilities? Avoid “locking into something prematurely,” and stay nimble enough to avoid getting burned if demand pulls back.
Google and Voltus are teaming up to build a 1-GW VPP in PJM.
Leveling up: That's 10x bigger than the pair’s initial plan. According to Google, this marks “one of the largest known distributed capacity portfolios deployed by a hyperscaler to date.”
How it will work: Under a contract through 2040, VPP operator Voltus will aggregate smart thermostats, batteries, and other flexible capacity from homes and businesses to offset data center load. In return, customers will save on their bills and get “cash payments.”
While we’re here: The Bonneville Power Administration has two new proposals to unclog its 47+ GW interconnection queue: 1) Utilize capacity at existing substations to offer non-firm service to 5 GW of data center load and 2) create a fast-track interconnection option for large loads with with co-located generation. To enter both programs, data centers must pledge to “pay their way.”
Want in front of the people who run the grid? Energy Central reaches 120K+ utility and energy professionals through newsletters, webinars, podcasts, events and sponsored content. If you're trying to build authority or generate leads in this industry, reach out today
Gainesville Regional Utilities is hiring multiple positions in Florida.
FM is hiring an equipment risk group manager in Massachusetts.
Austin Energy is hiring a director of customer account management in Texas.
Thanks for reading. Have an amazing weekend!