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The Pacific Northwest has become the unlikely vanguard in the movement to protect renters from extreme heat.

Washington State’s 2026 legislative session ended not with a bang, but with an alarm. On a drizzly mid-March evening before adjourning for the year, lawmakers filed out of the capitol having narrowly averted a special session over a data center tax break bill. “Someone or something” had set off the rotunda’s fire alarm, according to a local news outlet; returning after the brief delay, legislators cast their final vote, approving the state’s $79.4 billion spending plan.
The alarm was, in many ways, a fitting end to the state’s adrenaline-pumping 60-day short session, which saw 1,669 new bills introduced. Most were DOA due to time and ever-present budget constraints. Among the casualties was HB 2265, a bill to “protect tenants from periods of extreme heat” by extending a landlord’s responsibilities to include adequate cooling in rental units alongside the usual standbys of basic habitability, heat and hot water.
Had the law passed, Washington — somewhat bizarrely — would have gone further than any other state in the country in pushing landlords to provide air conditioning or a similar cooling system to their renters. While such laws might be expected in places like California, Nevada, or Arizona (which comes closest by requiring landlords to maintain ACs that are already installed), in Washington, the largest city, Seattle, was in fact the least air-conditioned metro area in the country until 2021, and remains second only to San Francisco.
“A lot of people think of the Pacific Northwest as mossy, mountainous, green, and damp,” John Seng, the policy manager at Spark Northwest, a Seattle-based clean energy nonprofit, told me. “But that misses out that on the east side of both Oregon and Washington, things have been getting really hot for a long time.”
Indoor air temperature maximums are not a new idea — Dallas has had one since 2017 — but the few laws on the books are almost exclusively in hot-climate cities and counties. Yet extreme heat is spreading: Between 1970 and 2022, 95% of the nearly 250 U.S. locations analyzed by Climate Central saw an increase in the number of days per year with dangerously high temperatures, with an average increase of 21 days. At the same time, one in three Americans is a renter — a population far less likely to have central AC than homeowners. Though the Pacific Northwest would seem to be an unlikely leader in protecting people from extreme heat, it has nevertheless become a bellwether for the ability of local officials to protect their residents from increasingly deadly temperatures.
“We are changing our climate so much that now, in most places in the country, cooling is just as necessary as heating,” Brian Henning, the director and founder of the Gonzaga Institute for Climate, Water, and the Environment, told me.
Washington isn’t alone in responding to the changing conditions in its corner of the country. A similar story is playing out in Oregon, which failed to pass its own early-stage right-to-cooling bill, SB 54, during last year’s legislative session. (That bill would have required landlords of multi-family buildings to provide cooling when outdoor temperatures exceed 80 degrees.) Now, Portland’s Permitting and Development Bureau is exploring a maximum-temperature code for rentals, which activists hope will serve as a model for a legislative sponsor to take up in a future statewide session.
“It feels like the Pacific Northwest is beginning to grapple with questions that desert cities addressed decades ago, which is, namely: What constitutes a safe indoor temperature during extreme heat?” Vivek Shandas, the founder of the Sustaining Urban Places Research Lab at Portland State University, told me of the proliferation of such bills, ordinances, and laws in the area.
That ponderance is coming not a moment too soon. Of the 75 counties in Washington and Oregon, residents in all but seven have disproportionately low concern given their respective extreme-heat risks, according to research by Yale’s Program on Climate Change Communication published in Nature Communications this month. Of those 75 counties, just three scored below the national median on the CDC’s Heat & Health Index, a risk measurement that considers indicators such as historical heat exposure, prevalence of health conditions such as cardiovascular disease or diabetes, and socioeconomic factors like age and income. Nearly a third scored well within the upper range of risk nationally. Combined with the fact that architecture in the Northwest was designed for decades to retain heat, and that the region has some of the fastest-warming urban areas in the country, the upper left-hand corner of the country is uniquely susceptible — and unprepared — for extreme heat, the deadliest climate change and weather-related disaster in North America.
That fact was made tragically clear during the 2021 heat dome, the record-breaking, model-breaking event that killed more than 250 people across the states and served as the catalyst for housing activists, climate organizers, and policymakers. Though researchers like Shandas, who studies urban heat, had been aware that the Northwest was a public-health disaster waiting to happen, there were a few particularly startling takeaways: Though “most people think of heat risk as something that happens outside,” Shandas said, the vast majority of the people who died during the heat dome died inside, and most were likely renters living in multifamily homes. Some were even found with fans turned on full blast, pointed directly at their bodies.
“A lot of people don’t know that if your space is higher than about 90 degrees indoors, a fan actually increases your risk of heat‑related illness or death, not decreases it,” Henning said. That’s because a fan cools you by moving air over your skin to wick away sweat, a process that accelerates dehydration and can actually radiate heat into your body if the air temperature is warmer than your skin. Even worse, rather than lowering the indoor temperature, fans give an “illusion of safety,” Dante Jester, the climate resilience program manager at the Gonzaga Institute for Climate, Water, and the Environment, told me, so people delay moving to a genuinely cool place or calling for help.
“People’s cooling strategies that they’ve used for decades in Spokane” — where more than 300 people were hospitalized during the 2021 heat dome — “aren’t working anymore,” Jester went on. “Historically, people would open their windows at night. They would go for a drive and run the AC with their kids in the car seats. They would run fans. But all of these things are becoming less and less efficient and more and more dangerous.” What’s more, as smoke becomes an increasing public health hazard due to the duration and intensity of the fire season, officials are more reluctant to tell people to keep their windows open for a cross-breeze.
How, then, to keep renters — who make up between 30% and 40% of the households in Washington and Oregon — safe? The answer: Incrementally. Though HB 2265 died in committee this spring, Democratic lawmakers managed to pass its sister bill, SB 6200, even during a short session dominated by efforts to balance the budget and debate over the Millionaires Tax. The Senate bill makes it illegal for a landlord in Washington state to prevent a renter from installing their own AC unit — that is, it is an access law rather than a habitability one.
“The statewide policy that passed [SB 6200] was actually based on the renter’s right-to-install ordinance that we helped pass in Spokane in 2024,” Jester said. “We thought of it at the time as a first step, or an on-ramp, to this greater goal of requiring residencies to be cooled.”
If the Spokane right-to-install AC ordinance was the on-ramp to statewide adoption, then the failure of HB 2265 could potentially be shrugged off as jumping the gun. That’s because activists in Spokane are now testing whether true right-to-cooling legislation can find a pathway forward via a local ordinance, which would make it a legal requirement for landlords to provide a way to keep their units under 80 degrees Fahrenheit, the same way temperature minimums ensure they provide heat in the winter.
Shandas, the Sustaining Urban Places Research Lab researcher, told me he conceptualizes the path forward for right-to-cooling laws in the Northwest as a three-step approach. The first stage is permission — laws like the 2024 ordinance in Spokane and SB 6200.
The second stage is recognition of extreme heat as an imminent public health threat. Though the now-dead HB 2265 would have been a big push toward requiring landlord-provided ACs in rental units, it didn’t do so explicitly; rather, it tweaked the state’s rental code to include cooling alongside heating as a basic habitability requirement. A bill like HB 2183, which also died during the 2026 session, would have further required Washington counties to develop and implement heat response plans, which gets at the bills’ larger purpose: to grapple with the fact that the housing stock, legal system, policies, electrical systems, and even emergency services in the Northwest are all designed for a cooler climate.
Though it feels like an in-between stage, recognition is especially crucial, James Moschella, the climate and health program manager at Washington Physicians for Social Responsibility, a health professional-fronted environmental advocacy group, told me. When paramedics respond to a case of heat stroke, for example, the first thing they often do is place the patient in the bathtub in their own home, along with everything in their freezer, to try to lower their body temperature as quickly as possible. “Ambulance response times during the heat dome were significantly down because of the way they have to treat people at their homes,” Moschella said. “As a result, by the time paramedics often got to a home, in many cases the person was already dead.” One small part of a comprehensive heat plan would be anticipating that problem, perhaps by staging more ambulances on a hot day.
The third stage is performance standards — that is, defining enforceable indoor temperature limits, like what Spokane is moving toward. “I think this evolution mirrors how heating standards developed historically in other parts of the world,” Shandas said. “Unfortunately, I think we need to be accelerating this much faster, going from stage one to three in a fraction of the time that it took lower latitude regions to go through.”
Because there are few examples of existing temperature maximum laws, though, policymakers and researchers in the Northwest are feeling their way forward mostly on their own. Even something as basic as what the maximum temperature should be requires ponderance, debate, and compromise. In Spokane, policymakers settled on 80 degrees. “It’s similar to how it was done for heating, that every habitable space needs to be able to get up to 65 [degrees],” Shandas said. “Some would say, Wow, 65 is really high for a cold day, can’t you get by with 60? And it’s like, sure, you can, but you’re trying to make policy for a very large, diverse demographic.”
Eighty degrees Fahrenheit, while generally safe for most populations, is the point at which the body may begin to feel the stress or undergo physiological responses that affect certain medications, such as antipsychotics. Still, Henning told me he’d advocated for an even lower limit given existing research on safe sleeping temperatures, which puts the range closer to 74 to 76 degrees, especially for seniors and the very young.
Implementation is also a topic of discussion. Housing advocates in Spokane wanted to go beyond a “right to install AC” ordinance, not just because they believe cooling deserves to be recognized as a legal habitability requirement like heating, but also because of the potential financial burden of acquiring, installing, and especially running an air conditioner. What’s unique about the Spokane ordinance, though, is that it sets an expected indoor temperature rather than mandating how that temperature is achieved. “The goal isn’t to force people to buy air conditioning,” Henning said, “but to provide spaces that are safe.” Maybe the 80-degree threshold could be maintained, for example, by shading building windows with trees.
Powerful landlord advocacy groups have generally opposed right-to-cooling movements on the grounds that they’re very expensive. (Multifamily NW, a landlord trade association and one of the major opponents of Oregon’s SB 54, and Rental Housing Association of Washington, which opposed HB 2265, did not respond to my requests for comment.) Retrofitting costs, electrical capacity, and grid stress are legitimate concerns, Shandas told me. “Even heat pumps,” he said, “are pretty energy-hungry appliances, and older multifamily residential homes might not have good insulation or windows,” meaning you could end up with the efficiency conundrum the Rocky Mountain Institute’s Amory Lovins has memorably likened to running an AC in a tent.
Other researchers were less sympathetic to this case. “Infrastructure costs money, and that’s what landlords are agreeing to when they choose to buy units and then have them paid for by other people,” Jester told me. “That’s how it goes: If you’re renting to people, it should be a requirement that it has to be livable, in my opinion.”
Who pays, though, is one of the major questions of climate adaptation. No one is arguing that extreme heat isn’t dangerous. But is it on tenants, landlords, utilities, or governments to front the costs of making their homes and communities livable?
The problem sounds daunting, put that way. And the pressure is on: By Shandas’ estimation, what happens in Spokane and Portland, and eventually at the state level in Washington and Oregon, “is really going to be the test case for what the legal right to cooling looks like” in the United States. Organizers and researchers in Massachusetts, New York, and Minnesota have already reached out to him about their own efforts to codify maximum temperatures into law. “These are all higher-latitude regions that are looking to the Pacific Northwest and saying, Holy crap, yeah, we have to get ready for this, because if it could happen in Portland and Seattle, it can happen anywhere. We were the bellwether,” Shandas said.
But next year will be another tight budget year in Washington, and while Democrats control the legislature, HB 2265 will need tweaks to get a broader coalition on board. “I think nobody was quite ready to move without a little bit more of a plan on exactly how we would define healthy temperatures and measure them,” Seng, of Spark Northwest, told me of its initial failure.
“Another piece is cost,” Seng added. “I think housing developers get pretty squeamish about new requirements like that.” Sure enough, landlords have successfully watered down temperature regulations elsewhere, including L.A. County, which last year approved a maximum indoor temperature of 82 degrees for rentals located outside city limits — albeit with plenty of exemptions and delays available for property owners. Landlord groups have also so far successfully staved off a California-wide temperature maximum law by pouring millions into lobbying efforts.
But even more than the usual happy warrior attitude typical of activists, the researchers in Washington and Oregon described the right-to-cooling laws as inevitable, given the climate. The question is whether a multi-stage approach or the fast-track pursuit of local ordinances, rather than the sluggish statewide process, will yield results soon enough. The heat dome baking Europe this week serves as an ominous reminder that extreme heat may return to the region at any time, and the Northwest has had only five short years since its wake-up call in 2021 to prepare.
But prepare it has. “The legal invention of cooling rights — that’s part of what I’m really excited to be alive right now to see,” Shandas said.
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The Metropolitan Police Service signed a deal with BetterFleet to manage the complicated logistics.
Police officers can’t be stuck waiting for their black-and-whites to recharge when an emergency call comes in. That urgency makes it especially tricky to transition their fleets away from fossil fuels and the lightning-fast gas fill-ups that get cars back on the road.
But some cities and departments have begun to make the move, aided by artificial intelligence models to manage their many vehicles and ensure electric cars can do not just the next job, but every job. Around the world, trucking companies, buses, municipal vehicles, and other huge fleets want to go electric to save money on fuel and maintenance, and they’re looking to AI to give them the confidence to take the plunge.
A cleaner fleet of cop cars is already coming to London, where the Metropolitan Police Service has turned over nearly a third of its fleet to hybrids or EVs. Last week, the MPS announced a partnership with the firm BetterFleet to manage how and when it charges its EVs, helping the service pursue its goal of a net-zero carbon emissions fleet by the end of the decade.
Much of the challenge is psychological, says BetterFleet CEO Dan Hilson. His solution is to use the power of data to overcome whatever anxiety an organization might have about switching to EVs, whether it’s range anxiety or fear of dealing with fluctuating electricity prices or something else entirely. During our interview earlier this month at the ACT Expo, a conference on advanced technology in fleets and trucking, Hilson told me that his company was able to prove to the London police that, with enough information and planning, “there’s no route you can’t do. There’s no day that you’ve done in the last three years that you couldn’t have done if it was electric.”
To demonstrate, BetterFleet builds digital twins of an operation — data-driven models that consider anything that would impact a vehicle’s range, from its own weight and cargo and the condition of its battery and motors to its planned route and speed. Even external conditions such as weather and traffic must be included to create as accurate a picture as possible of the vehicle’s condition and state of charge at any given moment.
While the approach sounds straightforward enough, hiccups come from unexpected places when you’re simulating the real world. BetterFleet found while working with King County Metro and its Seattle-area bus fleet that recharging times could vary widely between two pieces of charging equipment that look identical. “We thought, Hey, this is physics. It should just work in a particular way. But it really doesn’t,” Hilson said.
You also can’t always get what you want, data-wise. For example, Hilson said he thought automakers had access to battery information about things like degradation over time or what’s happening with the battery’s chemistry or temperature at any given moment. “Almost none of them have that, believe it or not,” he said. “And that’s because some of the original manufacturers of the batteries don’t seem to be able to give it.” His team had to work around it, building their own algorithms based on observed data to model how fast, say, an electric semi truck’s battery life would fade and adjust for it in the numbers.
BetterFleet had previously modeled and managed fleets such as London’s buses and the EV semi trucks that have been moving soft drinks around for Pepsi. But the electrification of emergency vehicles represents a next-level challenge. Bus routes are unchanging; trucking paths are predictable. Police may have beats and typical areas of service, but they must be able to respond elsewhere at a moment’s notice. As such, Hilson told me that part of his firm’s deal with the MPS was the inclusion of priority charging, so that critical vehicles could get back on the road faster. BetterFleet also must consider the possibility of when and where cop cars might use DC fast chargers to fill up quickly — an issue for departments everywhere. I often see a police Tesla or two refueling at a Supercharger in South Pasadena, California I often visit.
Indeed, while AI could have cascading benefits for EV fleets — think of predictive maintenance systems that learn which parts are likely to fail when — charging is one place where this kind of machine learning could be an enormous difference-maker right away. Trucking companies that want to go electric and steer clear of diesel price shocks don’t need to buy a $100,000 fast-charger for every truck; they need AI to tell them how many they really need if their whole fleet spreads out and optimizes its charging schedule. Grizzled lifelong trucking fleet managers don’t particularly want to become experts in complex energy markets in order to maximize their savings by charging EV trucks at the cheapest times, Hilson says. They just want AI to do it.
A variety of firms are moving into this space to help out companies that want to dip their toes into EVs. Katie Siegel, CEO of the charging management service FlipTurn, said at ACT that AI-managed charging has helped her firm balance the electrical demand of fleets by moving much of it to off-peak hours. While that approach netted thousands of dollars of savings per month, especially during summer, the benefits weren’t just monetary. For one client, such a demand-flattening approach got trucks and chargers up and running four to six months sooner than expected because it meant they didn’t have to wait for the utility to deliver extra capacity.
With so many data insights available, the trick now is deciding what matters. “The worst customers really says, It’s all important,” Hilson says. “Every single thing is important. I want my battery to be saved. I want energy savings. I want it to always be ready for trucks to pull out. So it’s about sitting with customers and really getting to that crux of what really is important. What’s the hierarchy?”
On Last Energy’s milestone, California CCS, and RFK Jr. vs. microplastics
Current conditions: The summerlike heat in the Northeast is set to drop by double digits as cold Canadian air blows southward, sending temperatures in Boston as low as 50 degrees Fahrenheit by Saturday • Temperatures are nearing 100 degrees in Cordoba, Spain, as Western Europe’s record-breaking heatwave continues • Juba is also nearly 100 degrees as heavy thunderstorms roll into the capital of conflict-riven South Sudan.
Last year, in a move so bold it made Biden administration officials jealous, President Donald Trump took an equity stake in MP Materials, making the federal government the largest shareholder in the United States’ only active domestic rare earths producer. The deal became a trend, with the U.S. government taking minority ownership stakes in at least a dozen more companies that produce or process critical minerals, of which China controls the global supply. In January, USA Rare Earth, a manufacturer of rare earth magnets that aims to eventually mine and process fresh ore in Texas, became the second large rare earths-focused company in the Trump administration’s portfolio. Now America’s two champions in the war against China’s metal monopolies are instead battling each other. On Wednesday afternoon, the Financial Times reported that MP Materials had filed a lawsuit against USA Rare Earth, accusing its rival of “stealing” its technology for making the permanent magnets that go into everything from phones and electronics to electric vehicles to fighter jets. “USA Rare Earth has repeatedly failed to meet its commercial and performance targets and is now resorting to stealing technology to dig itself out,” MP Materials alleged in a complaint filed last week in Texas court. In response, USA Rare Earth said: “MP Materials’ complaint has misrepresented our company, our culture, and our people, and we will defend ourselves vigorously.”
Yet another U.S. reactor startup hoping to build a prototype plant under the Department of Energy’s reactor pilot program has won the agency’s approval for its safety blueprint. On Thursday, Last Energy plans to announce the regulator’s official endorsement of the microreactor developer’s preliminary documented safety analysis — a key procedural step known as PDSA — for its 5-megawatt demonstration reactor at Texas A&M University. The reactor, set to be a quarter the size of Last Energy’s commercial-scale model, is designed to show regulators the technology can safely split atoms and generate heat for electricity production. The approval is only from the Energy Department and limited to the pilot project. To produce commercial electricity, Last Energy still needs to go through the Nuclear Regulatory Commission for a license. But the data from this pilot project is likely to count for Last Energy’s eventual application to the NRC for its first commercial plant. “Last Energy’s PWR-5 uses the same physical reactor geometry as the company’s commercial PWR-20, with reduced fuel enrichment scaled for 5 megawatts of electrical output,” the company told me. “The PWR-5 pilot project is a direct bridge to Last Energy’s commercial PWR-20 deployment.”
The approval makes Last Energy at least the fourth company so far to pass the PDSA phase after rival microreactor developers Antares, Radiant, and Deployable Energy. But it isn’t the only one. On Wednesday afternoon, an official at the Idaho National Laboratory posted on LinkedIn that he had approved the PDAS for two reactors in the Energy Department’s pilot program. It wasn't immediately clear which company was the second after Last Energy. “I couldn’t be prouder of the exemptional nuclear safety review team,” wrote Bob Boston, the Energy Department’s Idaho operations manager. “The public can rest assured that any and all approvals for new reactors under DOE will be safe.”
Two of the most populous states in the nation’s largest electric grid just released new rules for data centers looking to set up shop. In Pennsylvania, the largest state in PJM Interconnection, Governor Josh Shapiro issued a new set of standards for companies seeking to fast-track development, including requiring developers to generate their own electricity, give out millions of dollars in local support, and follow stricter sustainability rules on water. The Democrat, per the public radio station WVIA, “also wants to change a tax exemption program for data center owners and operators” to require companies to meet the new standards to qualify for tax breaks. The idea mirrors a proposal from Searchlight Institute senior fellow Jane Flegal, who argued last month for conditioning tax incentives on meeting best-practice industry standards for data centers. In New Jersey, the sixth-largest of PJM’s 13 states, Democratic Governor Mikie Sherrill released her own set of guidelines for data center companies that includes requiring public reporting of water and electricity usage and plans to develop “strong statewide standards” that provide “state resources to ensure municipalities can negotiate from positions of strength, ensuring data centers address impacts like light, noise, and pollution while making meaningful local investments” and “delivering good-paying jobs.”
Meanwhile in Alaska, where the Trump administration is clearing the way for all kinds of new infrastructure, the Anchorage-based startup Stak Energy is proposing one of the largest data centers in the nation on the Arctic North Slope. The $500 million project would take up an entire square mile with multiple buildings off the Dalton Highway, where proponents say cold temperatures and an abundant supply of land and natural gas for power can bolster the facility. The project could, according to the Northern Journal, produce up to 3 gigawatts of power for its own use, “making it competitive with some of the largest data centers under development in the Lower 48.” In a Tuesday segment on Alaska Public Radio, Northern Journal reporter Nathaniel Herz said the below-freezing average temperature on the North Slope meant the project would “be using what they expect to be 90% less water than a facility in the Lower 48.” Perhaps the biggest benefit though is the sparse population in the Arctic. As Heatmap’s Robinson Meyer explained of the latest Heatmap Pro data, the number of data center projects being canceled due to public backlash is soaring.
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Deep under California’s traffic-clogged streets, rolling farmland, and sprawling deserts are vast caverns — many the legacy of wells drained of oil during the heyday of Chevron’s Great Depression-era homestate drilling bonanza — capable of storing carbon dioxide captured before it enters the atmosphere. Until now, the state could only theoretically return carbon to the Earth’s crust. But on Tuesday, the oil and carbon management developer California Resources Corporation injected its maiden load of carbon dioxide into a depleted oil reservoir, marking the first time a carbon capture and storage project has come online in the state’s history. The project, called Carbon TerraVault I, is located in Kern County, the vast inland stretch northeast of Santa Barbara that’s home to California’s largest active oil fields. The site will draw out the dregs of oil left in the depleted wells in the Elk Hills Field by permanently returning up to 30 million tons of carbon dioxide to the formation roughly a mile deep underground. It’s part of a vertically integrated operation. California Resources Corporation, which calls itself CRC, operates a nearby cryogenic gas plant. The company captures the carbon dioxide from the facility and ships it to the so-called Class IV well in the oil and gas field. The first injection “demonstrates that California can lead on climate solutions that are practical, scalable, and cost-effective,” CRC CEO Francisco Leon said in a statement. Investors remain skeptical. Shares of CRC fell nearly 3% yesterday.
With gas turbines selling faster than manufacturers can keep up, technology that could capture carbon from gas-fired plants and thus preserve their value even in a scenario where the government prices emissions commands a new premium. It wasn’t long ago that activists uniformly dismissed the technology as a “false solution,” and experts cautioned that carbon capture and storage would be limited to hard-to-abate industrial sectors. But last October, as Heatmap’s Matthew Zeitlin reported, Google backed a project to build a gas plant with CCS, launching what may be one of the most promising efforts yet to commercialize the technology.
Fresh off wrangling a biting pair of eastern racer snakes he grabbed off the patio of Dr. Oz’s vacation home, Secretary of Health and Human Services Robert F. Kennedy, Jr. is trying to find ways to round up and get rid of the microscopic plastic particles circulating in Americans’ bodies. A new $144 million program, launched last month but featured in E&E News on Wednesday, aims to measure, understand, and remove micro- and nanoplastics, and marks the biggest federal investment to date in a field of study that coalesced just five years ago.
While the move was “welcomed by researchers, industry, environmental, and Make American Healthy Again advocates as well as online wellness gurus promoting nascent ‘detoxification’ methods,” the newswire quoted Kennedy’s own experts, who said the controversial health government chief was “focused on the wrong questions.” Marcus Eriksen, a marine plastics scientist who heads up the nonprofit 5 Gyres Institute and has advised Kennedy for years, said: “Getting it out of our bodies? That seems extremely tough to me.” So, why put resources there? Well, Eriksen said, it’s politically easier to sell than cracking down on the fossil fuel companies with growing businesses producing the ingredients for plastics. “I get that’s kind of the narrative that’s going to fly with this administration — focus on the downstream stuff, less on the prevention side,” he said.

For all the hype around small modular reactors, only two of the 440 some-odd commercial nuclear reactors in operating in the world today would qualify. One of them is a high-temperature gas-cooled plant in China, which generates 210 megawatts of electricity. (The cutoff for what qualifies as an SMR is widely agreed to be under 300 megawatts but over 20 megawatts, the threshold for microreactors.) The other was the world’s first SMR: Russia’s floating nuclear plant on a barge in the Siberian Arctic, capable of generating 70 megawatts of power. Nearly seven years after the vessel Akademik Lomonosov started producing electricity, Russia’s state-owned nuclear firm is preparing for another floating nuclear station. On Wednesday, World Nuclear News reported that Rosatom had finished manufacturing a 58-megawatt reactor for a serialized floating power station set to power a copper mining complex in Chukotka Autonomous Okrug, in the country’s northeasternmost corner. “Rosatom continues to expand its range of floating power units, and the completion of the first reactor for the lead floating nuclear power unit is a significant milestone,” Alexey Likhachev, the director general of Rosatom, said in a statement. “Today, Russia is the only country with an operating floating nuclear power plant, and we intend to maintain our leadership in the development of small-scale technologies.”
An investment boom is exploding in outer space. Investors have thrown their backing behind space-based solar power, orbital data centers, and even extraterrestrial power grids. SpaceX is pursuing an IPO — potentially the largest the world has ever seen — in part to fund its own off-Earth data center ambitions. The Space Foundation reported that the global space economy reached $613 billion in 2024, combining commercial revenue and government funding, while PricewaterhouseCoopers estimates the sector could grow to reach $2 trillion by 2040, largely driven by private sector innovation and support.
Different though they may be, these technologies all leverage the vast unknown outside our atmosphere to monitor, manage, and optimize terrestrial energy and climate systems.
This boom comes after roughly a decade of sharply falling launch costs, which has fueled a surge in satellite deployments for telecommunications and remote sensing applications. Together, these shifts have expanded the scope of what’s technically and economically possible in space — and in turn, broadened the range of systems and services needed to make this off-Earth infrastructure work.
“We’ve got over 14,000 satellites in space already, and that’s growing every day. It’s going to triple over the next five, six years,” Jeff Johnson, a general partner at the venture firm B Capital, told me. “And if you look at the other trend that’s happening, the power requirements for what’s going up in space have been growing dramatically and will continue to do so.” As Johnson explained, that’s because we’re asking satellites to do more — and to do it faster — than ever before: deliver high-speed internet globally, extend cell coverage in remote areas, and perform onboard data processing before transmitting imagery and other information down to Earth.
SpaceX, of course, has been the dominant force driving down launch costs while dramatically increasing the scale of satellite deployments with its partially reusable Falcon 9 rockets. More recently, it’s laid out an ambitious plan to put 100 gigawatts of “AI compute satellites” into orbit each year, with launches beginning as soon as 2028. As the company wrote in its S-1 filing ahead of its pending IPO, “we believe orbital AI compute is an incredibly difficult technical challenge that only we can solve at scale in the near term.” It also acknowledged, however, that the effort involves “significant technical complexity, unproven technologies, or technologies that do not exist,” and that ultimately, “such initiatives may not achieve commercial viability.”
It’s a startlingly frank assessment of an industry that holds both great potential and significant uncertainty. Much of SpaceX’s growth strategy — and likely the prospects of numerous other companies looking to launch large infrastructure into space — hinges on the success of its next-generation rocket called Starship. Designed to be fully reusable and much larger than any rocket built before, Starship will be capable of carrying roughly five to six times the volume and over eight times the massas Falcon 9. Throughout its 12 test launches so far, the rocket has seen both success and failures, accumulating mounting delays along the way.
The uncertainty around Starship’s future is one reason Johnson’s firm invested in Star Catcher, a startup that bills itself as “the first power grid in space.” He doesn’t view the startup’s value proposition as dependent on Starship’s success, betting that it can serve as critical infrastructure for satellites already in orbit today — not just for the bigger and better systems that future launch vehicles could enable.
Founded less than two years ago, Star Catcher is developing a laser-based system to beam solar energy to satellites in low Earth orbit, supplying additional power directly to their solar arrays even when they’re in Earth’s shadow. This enables satellites to perform ever more power-intensive operations. It also addresses a fundamental constraint of satellite design: A satellite is only as powerful as the size of its solar array, which must be small enough to fit inside a rocket and also degrades over time.
“The average satellite in the Earth’s orbit has like 1,500 watts of power generation, which is as much as my kids’ gaming computer uses,” Andrew Rush, Star Catcher’s CEO, told me. “But we’re saying that satellite is going to be a cell tower, it’s going to be a data center, and those are multi-kilowatt, tens of kilowatts, hundreds of kilowatts applications. There’s a big disconnect there.”
B Capital led Star Catcher’s oversubscribed $65 million Series A round, which closed earlier this month. The fresh capital will help the company demonstrate its system in orbit and move towards commercialization. Star Catcher plans to launch its own constellation of power node satellites with the sole purpose of harnessing energy from the sun — or, as Rush quipped, “the greatest fusion reactor known to humankind.” Each node will then beam that energy to other power-hungry satellites by directing concentrated, near-infrared laser light at their solar panels. This type of light can deliver far greater power density than diffuse sunlight, providing satellites with a roughly 10-fold increase in power capacity compared to what they would generate alone.
As Rush explained, this then enables both satellite and rocket companies to “shrink the size of the solar arrays, and therefore, shrink the size of the spacecraft — actually make it less complex, less massive, and therefore less costly to field.” Already, he said the startup has signed seven power purchase agreements with satellite companies such as Loft Orbital and Astro Digital, as well as agreements or letters of intent with “almost every orbital data center startup” including Starcloud, which wants to begin offering cloud computing in space by early 2027.
For its part, Star Catcher aims to scale commercially by the end of the decade. Rush argues that just as bringing data processing closer to mobile users on the ground speeds up browsing and streaming, the growth of satellite broadband will create demand for the same infrastructure in space. That means everything from caching streaming content to running AI inference and processing satellite data in orbit, thus reducing the latency involved with routing everything to space and back.
While Star Catcher is focused on providing grid infrastructure for conventional satellites and orbital data centers, another recently funded startup, Cowboy Space, wants to build those data centers itself — and the rockets that will bring them to space. The company was founded in 2024 under the name Aetherflux, with the goal of beaming solar energy from space down to Earth. But with its latest $275 million Series B fundraise earlier this month, the company unveiled both a new name and a new mission.
Modern rocket designs from SpaceX — Cowboy Space’s most formidable competitor — pair a reusable lower section with a disposable upper section that carries satellites into orbit mounted at the rocket’s tip. After that upper section releases the satellite into orbit, the now purposeless component drifts through space, eventually burning up as it reenters Earth’s atmosphere. But Cowboy Space aims to transform what would otherwise be discarded debris into an orbital, 1-megawatt data center, integrating hundreds of Nvidia chips into the rocket’s upper section.
“We started with a blank sheet of paper with a goal of packing as many GPUs as tightly and densely as possible, and getting them to space,” Joseph Yaffe, the startup’s COO, told me over email. “We believe that this is a first-of-its-kind approach — the launch vehicle and the orbital data center designed as a single integrated system from day one.”
He told me that existing launch providers couldn’t offer the launch capacity or flexibility that Cowboy Space needs, and that the economics just wouldn’t pencil unless they did it themselves. Of course that’s an extremely tall order. SpaceX currently dominates the market for private rocket launches, a sector notoriously littered with failures. Only a few other private companies have even managed to make a dent in the space, and they’re still far behind Elon Musk’s industry giant.
Yaffe naturally thinks his company is well-positioned to become the exception, and prominent backers such as Index Ventures, Breakthrough Energy Ventures, and Andreessen Horowitz seem to agree. The startup is targeting the end of 2028 for its first proprietary rocket launch. Eventually, Cowboy Space plans to deliver processing power on par with conventional data centers, with Yaffe explaining that “abundant solar power and radiative cooling in orbit are what make that cost structure achievable.”
It’s true that space-based data centers would not require the same energy- and water-intensive fans, chillers, or cooling towers used on Earth, instead dissipating heat into space via infrared radiation — essentially emitting thermal energy as invisible light. But using today’s technology, power dense satellites can’t radiate heat quickly enough to sustain AI workloads, and how Cowboy Space plans to overcome this remains an open question. Even Nvidia CEO Jensen Huang acknowledged the difficulty, remarking in a recent keynote address at the GPU Technology Conference in San Jose that “we have to figure out how to cool these systems out in space.”
But if Cowboy Space and others can overcome these technical hurdles, there are some clear advantages to putting data centers into orbit. For one, building these energy-hungry behemoths has become a fraught political issue on both sides of the aisle, with local opposition exploding this year. Then there are the familiar constraints of limited power availability and interminably long grid interconnection queues, which are preventing hyperscalers from ramping up their AI efforts as quickly — and cleanly — as they’d like.
“AI demand is growing faster than terrestrial infrastructure can scale,” Yaffe argues. He’s betting that this dynamic will hold even if policy fixes such as permitting reform eventually materialize. “Orbital data centers aren’t a replacement for terrestrial infrastructure. The long-term opportunity is about expanding total compute capacity.”
Likewise, Johnson of B Capital doesn’t see the primary value proposition of orbital data centers as alleviating power or permitting constraints. “The reason why things are moving to space isn’t because we don’t have telecommunications that work right on Earth, it’s because new use cases are getting unlocked that are better,” he told me. “The first time you’re on a plane and use Startlink, you see that. The first time you need to be somewhere that isn’t really served well by Wi-Fi, and you use it, you see that. So there’s use cases that are transformational that can get unlocked by the space economy”
Not everyone is as bullish, however. Luigi Scatteia, the lead of PwC’s global space practice, told me he expects there to be “some form of data relay in orbit.” That might look more like space-based computing networks processing data from Earth observation satellites, as we’re already seeing the beginnings of today. But full-on data centers with the capabilities of terrestrial server farms? Launched from rockets? “I’m just going to say what my professor in university always used to tell us: Anything you do on Earth is always going to be more difficult in space.”
He, too, thinks the real unlock for orbital data centers and beyond would be “if Starship really works as intended,” he told me. “If you really want to do massive things in space — if you want to have a paradigm shift, a Copernican change — you need to drastically raise the capacity and lower the cost to orbit.”
No question these are two incredibly difficult tasks, not just for SpaceX but for the broader ecosystem of emerging space startups betting that private industry can fundamentally reshape the space economy. But according to Rush of Star Catcher, investors are now increasingly willing to take that bet too, in a way they weren’t when he first entered the industry a decade ago.
“Now, there’s the full spectrum of capital available, from seed all the way through IPO and beyond,” Rush told me. And that money is flowing to “really every flavor of space company. And so just by that metric alone, this is the golden age to build in space.”