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On Redwood Materials’ milestone, states welcome geothermal, and Indian nuclear

Current conditions: Powerful winds of up to 50 miles per hour are putting the Front Range states from Wyoming to Colorado at high risk of wildfire • Temperatures are set to feel like 101 degrees Fahrenheit in Santa Fe in northern Argentina • Benin is bracing for flood flooding as thunderstorms deluge the West African nation.

New York Governor Kathy Hochul inked a partnership agreement with Ontario Premier Doug Ford on Friday to work together on establishing supply chains and best practices for deploying next-generation nuclear technology. Unlike many other states whose formal pronouncements about nuclear power are limited to as-yet-unbuilt small modular reactors, the document promised to establish “a framework for collaboration on the development of advanced nuclear technologies, including large-scale nuclear” and SMRs. Ontario’s government-owned utility just broke ground on what could be the continent’s first SMR, a 300-megawatt reactor with a traditional, water-cooled design at the Darlington nuclear plant. New York, meanwhile, has vowed to build at least 1 gigawatt of new nuclear power in the state through its government-owned New York Power Authority. Heatmap’s Matthew Zeitlin wrote about the similarities between the two state-controlled utilities back when New York announced its plans. “This first-of-its-kind agreement represents a bold step forward in our relationship and New York’s pursuit of a clean energy future,” Hochul said in a press release. “By partnering with Ontario Power Generation and its extensive nuclear experience, New York is positioning itself at the forefront of advanced nuclear technology deployment, ensuring we have safe, reliable, affordable, and carbon-free energy that will help power the jobs of tomorrow.”
Hochul is on something of a roll. She also repealed a rule that’s been on the books for nearly 140 years that provided free hookups to the gas system for new customers in the state. The so-called 100-foot-rule is a reference to how much pipe the state would subsidize. The out-of-pocket cost for builders to link to the local gas network will likely be thousands of dollars, putting the alternative of using electric heat and cooking appliances on a level playing field. “It’s simply unfair, especially when so many people are struggling right now, to expect existing utility ratepayers to foot the bill for a gas hookup at a brand new house that is not their own,” Hochul said in a statement. “I have made affordability a top priority and doing away with this 40-year-old subsidy that has outlived its purpose will help with that.”
Redwood Materials, the battery recycling startup led by Tesla cofounder J.B. Straubel, has entered into commercial production at its South Carolina facility. The first phase of the $3.5 billion plant “has brought a system online that’s capable of recovering 20,000 metric tons of critical minerals annually, which isn’t full capacity,” Sawyer Merritt, a Tesla investor, posted on X. “Redwood’s goal is to keep these resources here; recovered, refined, and redeployed for America’s advantage,” the company wrote in a blog post on its website. “This strategy turns yesterday’s imports into tomorrow’s strategic stockpile, making the U.S. stronger, more competitive, and less vulnerable to supply chains controlled by China and other foreign adversaries.”
A 13-state alliance at the National Association of State Energy Officials launched a new accelerator program Friday that’s meant to “rapidly expand geothermal power development.” The effort, led by state energy offices in Arizona, California, Colorado, Hawaii, Idaho, Louisiana, Montana, Nevada, New Mexico, Oregon, Pennsylvania, Utah, and West Virginia, “will work to establish statewide geothermal power goals and to advance policies and programs that reduce project costs, address regulatory barriers, and speed the deployment of reliable, firm, flexible power to the grid.” Statements from governors of red and blue states highlighted the energy source’s bipartisan appeal. California Governor Gavin Newsom, a Democrat, called geothermal a key tool to “confront the climate crisis.” Idaho’s GOP Governor Brad Little, meanwhile, said geothermal power “strengthens communities, supports economic growth, and keeps our grid resilient.” If you want to review why geothermal is making a comeback, read this piece by Matthew.
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Yet another pipeline is getting the greenlight. Last week, the Federal Energy Regulatory Commission approved plans for Mountain Valley’s Southgate pipeline, clearing the way for construction. The move to shorten the pipeline’s length from 75 miles down to 31 miles, while increasing the diameter of the project to 30 inches from between 16 and 23 inches, hinged on whether FERC deemed the gas conduit necessary. On Thursday, E&E News reported, FERC said the developers had demonstrated a need for the pipeline stretching from the existing Mountain Valley pipeline into North Carolina.
Last week, I told you about a bill proposed in India’s parliament to reform the country’s civil liability law and open the nuclear industry to foreign companies. In the 2010s, India passed a law designed to avoid another disaster like the 1984 Bhopal chemical leak that killed thousands but largely gave the subsidiary of the Dow Chemical Corporation that was responsible for the accident a pass on payouts to victims. As a result, virtually no foreign nuclear companies wanted to operate in India, lest an accident result in astronomical legal expenses in the country. (The one exception was Russia’s state-owned Rosatom.) In a bid to attract Western reactor companies, Indian lawmakers in both houses of parliament voted to repeal the liability provisions, NucNet reported.
The critically endangered Lesser Antillean iguana has made a stunning recovery on the tiny, uninhabited islet of Prickly Pear East near Anguilla. A population of roughly 10 breeding-aged lizards ballooned to 500 in the past five years. “Prickly Pear East has become a beacon of hope for these gorgeous lizards — and proves that when we give native wildlife the chance, they know what to do,” Jenny Daltry, Caribbean Alliance Director of nature charities Fauna & Flora and Re:wild, told Euronews.
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A third judge rejected a stop work order, allowing the Coastal Virginia offshore wind project to proceed.
Offshore wind developers are now three for three in legal battles against Trump’s stop work orders now that Dominion Energy has defeated the administration in federal court.
District Judge Jamar Walker issued a preliminary injunction Friday blocking the stop work order on Dominion’s Coastal Virginia offshore wind project after the energy company argued it was issued arbitrarily and without proper basis. Dominion received amicus briefs supporting its case from unlikely allies, including from representatives of PJM Interconnection and David Belote, a former top Pentagon official who oversaw a military clearinghouse for offshore wind approval. This comes after Trump’s Department of Justice lost similar cases challenging the stop work orders against Orsted’s Revolution Wind off the coast of New England and Equinor’s Empire Wind off New York’s shoreline.
As for what comes next in the offshore wind legal saga, I see three potential flashpoints:
It’s important to remember the stakes of these cases. Orsted and Equinor have both said that even a week or two more of delays on one of these projects could jeopardize their projects and lead to cancellation due to narrow timelines for specialized ships, and Dominion stated in the challenge to its stop work order that halting construction may cost the company billions.
It’s aware of the problem. That doesn’t make it easier to solve.
The data center backlash has metastasized into a full-blown PR crisis, one the tech sector is trying to get out in front of. But it is unclear whether companies are responding effectively enough to avoid a cascading series of local bans and restrictions nationwide.
Our numbers don’t lie: At least 25 data center projects were canceled last year, and nearly 100 projects faced at least some form of opposition, according to Heatmap Pro data. We’ve also recorded more than 60 towns, cities and counties that have enacted some form of moratorium or restrictive ordinance against data center development. We expect these numbers to rise throughout the year, and it won’t be long before the data on data center opposition is rivaling the figures on total wind or solar projects fought in the United States.
I spent this week reviewing the primary motivations for conflict in these numerous data center fights and speaking with representatives of the data center sector and relevant connected enterprises, like electrical manufacturing. I am now convinced that the industry knows it has a profound challenge on its hands. Folks are doing a lot to address it, from good-neighbor promises to lobbying efforts at the state and federal level. But much more work will need to be done to avoid repeating mistakes that have bedeviled other industries that face similar land use backlash cycles, such as fossil fuel extraction, mining, and renewable energy infrastructure development.
Two primary issues undergird the data center mega-backlash we’re seeing today: energy use fears and water consumption confusion.
Starting with energy, it’s important to say that data center development currently correlates with higher electricity rates in areas where projects are being built, but the industry challenges the presumption that it is solely responsible for that phenomenon. In the eyes of opponents, utilities are scrambling to construct new power supplies to meet projected increases in energy demand, and this in turn is sending bills higher.
That’s because, as I’ve previously explained, data centers are getting power in two ways: off the existing regional electric grid or from on-site generation, either from larger new facilities (like new gas plants or solar farms) or diesel generators for baseload, backup purposes. But building new power infrastructure on site takes time, and speed is the name of the game right now in the AI race, so many simply attach to the existing grid.
Areas with rising electricity bills are more likely to ban or restrict data center development. Let’s just take one example: Aurora, Illinois, a suburb of Chicago and the second most-populous city in the state. Aurora instituted a 180-day moratorium on data center development last fall after receiving numerous complaints about data centers from residents, including a litany related to electricity bills. More than 1.5 gigawatts of data center capacity already operate in the surrounding Kane County, where residential electricity rates are at a three-year high and expected to increase over the near term – contributing to a high risk of opposition against new projects.
The second trouble spot is water, which data centers need to cool down their servers. Project developers have face a huge hurdle in the form of viral stories of households near data centers who suddenly lack a drop to drink. Prominent examples activists bring up include this tale of a family living next to a Meta facility in Newton County, Georgia, and this narrative of people living around an Amazon Web Services center in St. Joseph County, Indiana. Unsurprisingly, the St. Joseph County Council rejected a new data center in response to, among other things, very vocal water concerns. (It’s worth noting that the actual harm caused to water systems by data centers is at times both over- and under-stated, depending on the facility and location.)
“I think it’s very important for the industry as a whole to be honest that living next to [a data center] is not an ideal situation,” said Caleb Max, CEO of the National Artificial Intelligence Association, a new D.C.-based trade group launched last year that represents Oracle and myriad AI companies.
Polling shows that data centers are less popular than the use of artificial intelligence overall, Max told me, so more needs to be done to communicate the benefits that come from their development – including empowering AI. “The best thing the industry could start to do is, for the people in these zip codes with the data centers, those people need to more tangibly feel the benefits of it.”
Many in the data center development space are responding quickly to these concerns. Companies are clearly trying to get out ahead on energy, with the biggest example arriving this week from Microsoft, which pledged to pay more for the electricity it uses to power its data centers. “It’s about balancing that demand and market with these concerns. That’s why you're seeing the industry lean in on these issues and more proactively communicating with communities,” said Dan Diorio, state policy director for the Data Center Coalition.
There’s also an effort underway to develop national guidance for data centers led by the National Electrical Manufacturers Association, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, and the Pacific Northwest National Laboratory, expected to surface publicly by this summer. Some of the guidance has already been published, such as this document on energy storage best practices, which is intended to help data centers know how to properly use solutions that can avoid diesel generators, an environmental concern in communities. But the guidance will ultimately include discussions of cooling, too, which can be a water-intensive practice.
“It’s a great example of an instance where industry is coming together and realizing there’s a need for guidance. There’s a very rapidly developing sector here that uses electricity in a fundamentally different way, that’s almost unprecedented,” Patrick Hughes, senior vice president of strategy, technical, and industry affairs for NEMA, told me in an interview Monday.
Personally, I’m unsure whether these voluntary efforts will be enough to assuage the concerns of local officials. It certainly isn’t convincing folks like Jon Green, a member of the Board of Supervisors in Johnson County, Iowa. Johnson County is a populous area, home to the University of Iowa campus, and Green told me that to date it hasn’t really gotten any interest from data center developers. But that didn’t stop the county from instituting a one-year moratorium in 2025 to block projects and give time for them to develop regulations.
I asked Green if there’s a form of responsible data center development. “I don’t know if there is, at least where they’re going to be economically feasible,” he told me. “If we say they’ve got to erect 40 wind turbines and 160 acres of solar in order to power a data center, I don’t know if when they do their cost analysis that it’ll pencil out.”
Plus a storage success near Springfield, Massachusetts, and more of the week’s biggest renewables fights.
1. Sacramento County, California – A large solar farm might go belly-up thanks to a fickle utility and fears of damage to old growth trees.
2. Hampden County, Massachusetts – The small Commonwealth city of Agawam, just outside of Springfield, is the latest site of a Massachusetts uproar over battery storage…
3. Washtenaw County, Michigan – The city of Saline southwest of Detroit is now banning data centers for at least a year – and also drafting regulations around renewable energy.
4. Dane County, Wisconsin – Another city with a fresh data center moratorium this week: Madison, home of the Wisconsin Badgers.
5. Hood County, Texas – Last but not least, I bring you one final stop on the apparent data center damnation tour: Hood County, south of the Texas city of Fort Worth.