March 2025

Data Center Bubble?

The MICEF team is suffering from “data center fatigue” these days. Every policy area we touch is being affected by proposed data center (DC) growth: energy capacity and cost, land use, grid reliability, tax policy, national security, etc. While forecasting how these issues will play out is speculative business, some realities are coming into focus.

1) Investment capital for DCs is maxing out and maybe overextended already. Investors are at real risk of suffering bubble bursting losses. Can you say “Dot.com bubble 2.0”? 

2) There is not enough available electricity to power all the proposed DCs and new capacity cannot be built fast enough to meet proposed demand. This will “naturally” limit DC growth.

3) Intense public opposition to DCs spans the entire political spectrum from right to left, liberal to conservative to libertarian. This may limit growth too.

MICEF will continue to advocate for a free-market, “All of the Above” energy strategy that will help us navigate the turbulence (hopefully smoothing out soon) caused by DCs.

MICEF Partners on Nuclear Lobby Day

MICEF continues to be a leading voice for nuclear energy development in Michigan. Last year we hosted a first-of-its-kind nuclear energy education day at the Capitol with top national and state nuclear leaders. On February 18, Michigan’s two utilities that operate nuclear plants, DTE and Indiana & Michigan Power, hosted an advocacy day bringing university students, labor, and other industry supporters to have one-on-one meetings with legislators.

MICEF Executive Director Ed Rivet was tapped to “chaperone” different groups of advocates around the Capitol complex for meetings with legislators and staff. The advocates were all new to this type of interaction, but none of the legislators were surprised to see MICEF leading the delegations. Our reputation as a strong nuclear energy proponent is well known in Lansing.

Virtual Power Plant Bills Heard

MICEF supports grid enhancing technology

The Michigan State Senate Energy Committee held a hearing on Senate Bills 731-732 that would authorize Virtual Power Plants (VPPs) under state law. Energy storage and management technologies have advanced so dramatically in the past half-decade that tremendous opportunities for customers of all types benefit from them; this must be part of our energy strategy. Linking these technologies together (a VPP) with the grid would allow for cost-saving load management and added resiliency to the grid.

MICEF registered its formal support for the bills at the hearing, the first time VPP legislation has been considered at the State Capitol. Prospects of the legislation moving is doubtful in the face of unified opposition from monopoly utilities.

U.S. Renewable Energy Generation Record

2025 broke 25% threshold

The U.S. Energy Information Administration just released data on America’s electricity generation mix for 2025. Renewable energy continued its upward trend, comprising 26% of total generation. Coal has experienced its third year of being at the bottom of the production list at 16%, behind nuclear at 18%, and natural gas being king at 40%. 

Wind and solar energy are driving this steady upward trajectory, but 2026 is the year geothermal generation will truly step into the ring. The first small geothermal plants are just coming online, with many more in the pipeline. Nuclear is also set for some modest growth as Michigan’s Palisades plant is set to reopen, other plant reopenings are in the works, and SMR projects are moving on an accelerated timeline. The growth of renewables and nuclear should put us on a path to 50% emission-free generation by or before 2030.

Seeking 8th Class of Pischea Fellows

MICEF’s Pischea Fellowship program is seeking its next class from among university upperclassman and graduate students. We typically select two or three fellows per class, based on the nature of their proposals and evolving energy trends. The goal is for their work to inform and advance energy policy consistent with our conservative principles.

Interested collegiate juniors, seniors, or graduate students are encouraged to review our program and apply online on our Pischea Fellowship webpage or contact MICEF Program Director Emily Pallarito Szczerowski at epallarito@micef.org.

More on Tech...

“Super battery” passes first tests… we think

Last month we wrote about Finland-based Donut Labs claim to have developed a solid state battery with insane performance metrics: 40+% increased energy density, 10-minute charging times, high thermal resistance (i.e. no fires), a “practically forever” lifespan, and cheaper, more abundant minerals (no lithium). Donut Labs said they would start making units available for independent testing as it released very little test data or design specifics at the January Consumer Electronics Show (CES).

Since the CES, the energy social media realm has been obsessed and wanting more information. The highly-regarded VTT Technical Research Centre has issued results of two initial independent tests - charging speeds and heat tolerance – both of which essentially confirm some of Donut’s claims… well pretty close. The testing was of limited scope and many questions remain unanswered. The YouTube energy influencer buzz continues as Donut teases out more test results. It's a tantalizing PR strategy.

Why so much interest and speculation? Imagine a car with 900 miles of range that charges in 15 minutes, where the battery will outlast the vehicle, won't catch on fire, is cheaper than a gas-engine car, and could power your house in a grid outage for several days. This would be transformational energy technology.