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On half-full glasses, Omani polysilicon, and U.S. vs. Chinese nuclear

Current conditions: Guam and the Northern Mariana Islands are carrying out damage assessments after Super Typhoon Bavi made landfall Monday as the equivalent of a Category 5 hurricane • A wildfire has scorched more than 11,000 acres in the French Pyrenees, forcing thousands to evacuate • Heavy rain from Typhoon Maysak has killed at least 15 people in China this week.
The governors of 11 states across the American West signed onto a pact to speed up permitting and increase coordination on the regional electrical grid. The agreement, brokered at the Western Governors’ Association’s annual meeting last week, unites Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, Utah, Washington, and Wyoming behind the Western Transmission Expansion Coalition, or WestTEC. The interstate effort to build out the grid across America’s western half published a study in February that found the region needed 12,600 miles of new transmission lines over the next decade, at a cost of roughly $60 billion. Even the energy adviser to Utah Governor Spencer Cox — a Republican who has positioned himself as a vocal champion of “fiscal responsibility” — called the investment “just common sense” for the West. “Getting energy to where it’s needed, when it’s needed, is just as important as generating it in the first place,” Emy Lesofski, who also serves as the director of the Utah Office of Energy Development, said in a statement. “Think of the grid like the roads and highways connecting our communities — it doesn’t matter how much is produced if you can’t move it to where people actually live and work.”
It’s a sign, perhaps, of the counterintuitive but optimistic conclusion of a new study by the Massachusetts Institute of Technology Center for Energy and Environmental Policy Research. Entitled “Glass Half Full,” the report — which my colleague Robinson Meyer published as an exclusive — compared the tax and spending laws passed under the Biden and Trump administrations and also analyzed each administration’s environmental rules. The analysis concludes that 74% of new clean energy capacity that would have gotten built under the Biden administration’s policy by 2035 will still get built under Trump’s policies by that same year. Those new renewables and nuclear plants will generate about 71% of the electricity that would have been expected had Biden’s policies remained law. Roughly 67% of the climate pollution that would have fallen under Biden’s policies will still drop under the trajectory Trump set. “The glass is substantially full,” Lily Bermel, the report’s author and a visiting fellow at the Columbia Center on Global Energy Policy, told Rob. “It’s not barely half full. It’s like three-quarters full.”
The U.S. grid needs to increase its supply of reliable electricity as quickly as possible. But regulators are stretched so thin racing to approve new projects that they can’t risk diverting attention to fast track last-minute design changes to a $2 billion gas-fired plant in the nation’s largest and arguably most stressed grid system. On Monday, Utility Dive reported that the Federal Energy Regulatory Commission decided last week to reject a request for a waiver to allow Advanced Power Services’ Chestnut Run project in eastern Ohio to hook up to the PJM Interconnection system while bypassing certain rules. PJM included the plant — the parent company of which is ArcLight Capital Partners, which in turn sold itself in May to the data center developer DigitalBridge for $1.1 billion — in the initial 51 projects designated under the Reliability Resource Initiative, a program to fast-track roughly 12 gigawatts of additional generation from new and existing power stations.
In a dynamic that echoes what went wrong with Westinghouse’s buildout of two AP1000s at Southern Company’s Plant Vogtle, the process for the program barred any changes to a project’s size and capacity in its interconnection rights. With gas turbines in short order, Advanced Power couldn’t get critical equipment. The Boston-based independent power producer told FERC it had found alternative turbines, but that the new units would change the plant’s configuration, shaving off a modest 55 megawatts from its maximum output of more than 1.2 gigawatts of electricity. It’s barely a 4% difference. But FERC said that “studies resulting from the equipment changes would introduce substantial delays” and “have a ripple effect” on other projects in the queue.

Back in February, Oman’s United Solar opened the Middle East’s largest polysilicon plant. At full capacity, the facility will churn out 100,000 metric tons of polysilicon per year, enough to produce 40 gigawatts of solar panels. That makes the plant the largest of its kind outside China. Initially backed by Oman’s sovereign wealth fund, United Solar has already received $30 million in backing from Waaree Solar Americas, the U.S. subsidiary of an Indian solar giant that Semafor reported was championed by Prime Minister Narendra Modi in recent trade talks in Muscat. On Monday, the Oman Observer reported that United Solar had closed a $1.6 billion deal with the International Finance Corporation, the private sector arm of the World Bank Group. In a statement, the company described the investment as an endorsement of United Solar as a supplier of material that can comply with mounting American and European trade restrictions on Chinese solar panels.
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Cuba’s entire power grid went offline Monday as the Caribbean nation’s energy crisis devolves into catastrophe amid Washington’s blockade on fuel shipments. Energy Minister Vicente de la O Levy told CNN that officials were working to restore energy and that they’ve already activated emergency “microsystems” that supply electricity to critical services. In a plea to the United Nations in May, Francisco Pichón, the highest ranking officer in the Havana office of the U.N.’s Development System, said “time is running out, we need fuel now to save lives.” As in neighboring Puerto Rico, the ongoing grid disaster has spurred a boom in rooftop solar. But NBC News reported that Cubans are also turning to dirtier energy sources such as charcoal to cook indoors, subjecting themselves to dangerous smoke.
I find the comparison to Puerto Rico particularly poignant. Both islands were colonized around the same time, forming the beachhead of Spain’s early empire in the Americas, and rebelled against Madrid’s rule around the same time. Both fell under Washington’s suzerainty after the Spanish-American War of 1898, although the Americans granted Cubans self rule while seizing Puerto Rico as a colony. After the Cuban Revolution, the U.S. invested in Puerto Rico as a manufacturing hub and a symbol of the American system’s superiority. But as the memory of the Cold War faded into the 1990s, the U.S. cut key support for Puerto Rico, flipping over the first domino in a process that ultimately led to the island’s bankruptcy and the total collapse of its electrical system. The islands had opposite experiences of the so-called American Century. Neither one can keep the lights on.
In the early hours of July 4, the microreactor developer Aalo Atomics split atoms at its test reactor for the first time, becoming the fourth company in the Trump administration’s reactor pilot program to go critical. Criticality, on its own, is not a huge deal. But the program supported 10 companies to build test reactors that could generate data that the developers can use in their applications to the Nuclear Regulatory Commission. The Department of Energy, which administered the program, set a July 4 deadline for at least three companies to split atoms for the first time. First came Antares Nuclear, whose microreactor — designed for the military and space — went live at the Idaho National Laboratory early last month. Two weeks later, the gas-cooled microreactor maker Valar Atomics fired up its test reactor at the San Rafael Energy Lab in Utah. A week ago, as I told you, Deployable Energy went critical with its “nuclear battery,” also at the Idaho National Lab. In a statement, Aalo Atomics CEO Matt Loszak called reaching criticality “our most significant milestone to date, as it paves the way for the deployment of” the full-scale power units by smoothing the pathway to NRC approval.
I hope you were soothed by that chaser, because here’s the acrid shot: While we split atoms at test reactors, China just hooked up a whole new gigawatt-scale reactor to its grid. Last week, I told you that the second of six new Hualong One reactors — essentially China’s standardized version of the American AP1000 with an all-domestic supply chain — had hit a critical juncture. Well, now it’s hit the most critical juncture of all: It’s officially supplying power to the grid. Onto the next one.
The offshore wind industry may be in retreat in the U.S., but it’s just picking up in Europe. On Monday offshoreWIND.biz reported that the Netherlands’ 760-megawatt Hollandse Kust West VI offshore wind farm has officially connected to the grid. The 52-turbine plant is expected to reach full capacity by the end of this year.
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Current conditions: Hurricane Genevieve formed into the first major storm of the season, strengthening to Category 4 off Mexico’s Pacific Coast on Sunday but steering clear of any land for now • Hurricane Fausto, meanwhile, is weakening as it heads toward Hawaii • China evacuated hundreds of thousands of people as Typhoon Noul made landfall.

Wildfires in France and Spain forced roughly 300,000 people to evacuate their homes in what the French Interior Minister Laurent Nuñez called an “unprecedented” blaze. In Spain, the central western province of Avila suffered what the broadcaster France24 described as its “worst blaze in recent history” as Prime Minister Pedro Sanchez directly linked the disaster to climate change. By Sunday evening, in France, flames had come within nine miles of the southwestern city of Bordeaux in the heart of the nation's storied winelands as President Emmanuel Macron vowed to “rebuild.” Others saw the disaster as a sign of overdue lifestyle and infrastructure changes in the face of a warming planet. In Le Monde, the newspaper of record, the philosopher Cynthia Fleury and the Socialist mayor of the town of Saint-Médard-en-Jalles, Stéphane Delpeyrat-Vincen, argued: “What is burning is not just forests, but a way of inhabiting the land that is no longer possible.” The fires come weeks after a series of historic heat waves in Europe, including the hottest June on record, which made tinderboxes of parched woodlands.
President Donald Trump last week announced a landmark deal with Saudi Arabia to help build the kingdom’s first nuclear power station, besting the Russians and the Chinese in a race to tap into one of the world’s most coveted new export markets for atomic power technology. While the White House has yet to release all the details on the geopolitically meteoric agreement with Riyadh, sources with knowledge of the deal have confirmed to me what’s been reported elsewhere — that the deal will almost certainly include new large-scale Westinghouse AP1000s. Over the weekend, The New York Times identified another element to the partnership: Trump’s family and personal friends may benefit. The newspaper pointed to ties between a firm owned by Secretary of Commerce Howard Lutnick’s sons and Westinghouse; links between Eric Trump and Donald Trump Jr.’s investments into quantum computing and former Texas Governor Rick Perry’s Fermi America project to build AP1000s in Texas; and suggested that TAE Technologies, the fusion company merging with the corporate parent of Trump’s Truth Social platform, could see potential benefits from the Saudi deal. “There is no evidence at this point that Mr. Trump’s friends or family helped orchestrate the Saudi nuclear deal,” reporters Eric Lipton and Kate Kelly wrote. “Yet a number of the president’s allies and relatives, including members of his cabinet, stand to benefit if his big bet on nuclear power pays off. Certain investors with ties to these deals are positioned to profit, even if the delivery of large new loads of nuclear-powered electricity remains years away.”
The Trump administration is, in fact, making a real attempt at building new AP1000s at home. As my colleague Robinson Meyer wrote last month, a major Department of Energy deal would help utilities buy the parts needed to build more Westinghouse reactors.
Chip giant Nvidia is considering providing a $250 billion backstop to fund OpenAI’s data center project in southern Ohio, The Wall Street Journal reported on Sunday. The deal would guarantee up to half of the capital needed to lease SoftBank’s 10-gigawatt data center to supply computing power to the ChatGPT maker.
GE Vernova’s backlog of orders for gas turbines, meanwhile, now stretches to 2031 and accounts for a cumulative 116 gigawatts of power-producing capacity. In its latest earnings call, covered in Utility Dive at the end of last week, the company posted double-digit revenue and order growth in the division that supplies equipment for gas, hydro, nuclear, and grid facilities.
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Back in February, I told you that Japan was stepping up its efforts to extract rare earths from seabed minerals. On Friday, Tokyo confirmed it had discovered that medium and heavy rare earth elements accounted for about 54% of the rare earths mined from mud recovered from a remote Pacific island, Mining.com reported. The finds come after the government-backed vessel Chikyu sucked nearly 50 metric tons of mud from Minamitori Island, an uninhabited atoll located closer to Wake Island than Tokyo. Heavy rare earths, such as dysprosium, terbium, and yttrium — and medium rare earths such as samarium, europium, and gadolinium — are trickier to process. China controls the market for both categories by a wider margin than for light rare earths. That makes Japan’s discovery so exciting. Separating metals out of the mud could be an easier process than from other ores, potentially supplying the democratic world with a new source of non-Chinese minerals.
When the Biden administration tried putting rules in place for producing clean hydrogen, as my colleague Emily Pontecorvo explained nicely at the time, the regulations posed a problem for efforts to make fuel through nuclear-powered electrolysis. That’s because the incentives to ensure developers built new solar and wind rather than cannibalizing existing grid resources for hydrogen production made it impossible for nuclear reactors to qualify. Companies such as Constellation Energy, which had the nation’s leading experiment in nuclear-powered hydrogen production, protested. It all turned out to be for nought, since Trump ultimately wiped out the tax credits. As with so much nuclear technology that faces political tumult in America, South Korea is moving in to try its hand at hydrogen fuel production. Korea Hydro & Nuclear Power, the country’s state-owned nuclear giant, said it will launch a pilot program to produce hydrogen using heat and electricity from reactors, Hydrogen Insight reported last week.
India, meanwhile, is beefing up its plans for small modular reactors. Earlier this month, I reminded you about New Delhi’s plans to open its nuclear sector to foreign investments after years of icing out all but Russia’s state nuclear vendor. That isn’t to say India isn’t looking to continue building its own indigenously-designed units. On Friday, NucNet reported that the country plans to develop and operate at least five of its own SMR designs by 2033.
Last week, Heatmap editorial fellow Ameya Hadap broke news that Koloma, a startup seeking to spur natural production of hydrogen, had inked a deal to look for gas deposits across 817 square miles of the Philippines’ largest island, Luzon. It’s not the only subsurface search for clean energy. Last week, the country’s Economy and Development Council approved the Philippines’ first financing package to de-risk geothermal investments, Think Geo Energy reported.
The data center boom is everywhere you look in U.S. economic and emissions data.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
It isn’t exactly a new thought, but I’ve been struck recently by how many trends in America’s economic and environmental data are fundamentally about the data center boom and the return of electricity demand:
First, the Energy Information Administration reported this week that U.S. emissions grew by more than 2% last year, driven by surging electricity demand and an increase in coal-fired generation. What caused that higher power demand? New factories and data centers — as well as record summertime cooling demand.
Second, many of the new factories driving that higher power demand are themselves producing goods that are … let’s say … data center-adjacent. There are the enormous new semiconductor fabs, of course. But Ford and General Motors have also set up new production lines (or repurposed old ones) to manufacture grid-scale batteries to meet power demand.
Third, take a look at the recent U.S. spending on private non-residential construction — in other words, everything American companies are building that is not houses, condos, or apartments.
The construction industry’s spent almost $60 billion on data centers over the past year, which is more than it spent on all other office buildings combined (and more than it spent building warehouses, too). Just a handful of categories — data centers, power plants, electricity infrastructure, and certain kinds of electronics manufacturing — now make up a third of all U.S. private non-residential construction investment. They’ve never made up such a large share of construction spending since data collection began in 2014.
As The New York Times recently noted, the American economy is unusually dependent on the American stock market right now — and the stock market is unusually dependent on artificial intelligence. This week, investors started to balk at the enormous spending hyperscalers are planning to keep building out the AI boom; Alphabet’s shares dropped 8% this week after it boosted its planned 2026 capital expenditure and signaled 2027 will be even bigger. If the data center boom started to slow down in earnest, then more than just that budget will change.
Speaking of which, my colleague Emily Pontecorvo wrote earlier this week about how many businesses are struggling to even estimate their carbon emissions from artificial intelligence. The carbon accounting startup Watershed recently unveiled a new formula to help companies get a sense of their AI-related emissions.
But even that formula is still limited by the amount of data hyperscalers publish — and they don’t publish that much. Google, for instance, is the only AI company that has (laudably) provided estimates of its emissions on a per-prompt basis. Yet no company has published its per-token emissions, or how emissions sync up with particular models or regions.
So Emily asked Google: Why aren’t you — or any other model provider — disclosing this kind of data yet?
The tech company didn’t get back to us until after we’d published Emily’s story. But its response was interesting enough that I wanted to quote some of it here.
The problem is “industry consensus,” Cooper Elsworth, a Google spokesperson, told us. “There is currently very little consensus on how to comprehensively and fairly measure the serving environmental impact of generative AI (such as text generation),” he wrote. “Without standardized, ‘apples-to-apples’ frameworks, it is difficult to compare different providers accurately.”
That’s partly because energy use — and emissions data — can vary from site to site and depend on “custom-built hardware, software compilers, and advanced inference techniques.” And he claimed Google doesn’t always have the measurement hardware in place to provide such specific estimates: “Providing precise, repeatable data requires highly advanced measurement infrastructure,” he said. “For example, software-based energy monitoring tools often suffer from sampling biases. For our study, we had to step away from top-down averages and directly measure actual energy at the physical power supply unit (PSU) level across our deployed fleet. Not all providers have the telemetry or data sets required to benchmark their operations at this level of granularity.”
Read Emily’s story to understand the other reasons why estimating — or even “guesstimating” — AI-related carbon emissions is so challenging.
A conversation with Emma Uridge of the Kansas Health Institute.
This week’s conversation is with Emma Uridge, analyst with the Kansas Health Institute. Uridge spent copious hours analyzing state and local laws on data center development to best understand how policymakers are responding to the potential environmental public health impacts of large AI infrastructure, including power and water. The report, which came out this week, also goes in depth into those health impacts. I reached out to her to discuss what she sees as must-watch territory for our readers on this emerging policy arena.
Our conversation was lightly edited for clarity.
What is actually being done on policy when it comes to data centers — beyond moratoria of course?
So first I’d like to just talk about the point of moratoria. It’s helpful to talk about how these policies emerge in the first place. One area where moratoria are helpful is when a data center is proposed but the county has no approach for how they’d like to potentially regulate them. That’s temporary, most of the time. It lets local governments conduct research on the various impacts and also negotiate community benefits, ones that can mitigate any potential negative impacts — like Lancaster Pennsylvania, which instituted a community benefit agreement that maximized the potential benefits of development while mitigating what large data centers can do. That agreement looked at capping municipal water use at 20,000 gallons per day and requiring 100% clean energy. It had financial penalties for non-compliance. The company also committed $20 million to their local economic development and clean energy fund. There are ways to negotiate with developers.
We also see amendments to existing zoning. Data center proposals are increasingly popping up in rural areas, many of which are unzoned, so there’s no way a county can negotiate unless there’s a moratorium in place.
Other policy solutions include different performance standards or requiring on-site renewable energy, like what Jefferson County, Missouri, looked at. Also setback requirements, mandatory noise buffers, ending by-right zoning.
Where are local governments getting ideas for regulating data centers?
A lot of the technical information comes from developers. That can in cases be seen as a biased source of information. I wouldn’t say there’s a dedicated group providing assistance to local governments when a project is proposed — which is a similar story to wind industry development, where we have only a handful of consultants who provide technical advice. It can be really helpful to get a multi-disciplinary approach to hearing information. It can be helpful to have the utility commission, public health folks, those in academia, as well as the developer.
As of right now, especially in rural areas, local governments have a hard task of balancing pushback while getting the most accurate, evidence-based, neutral information to make decisions. That balance can be contentious.
What is the federal government doing on data center policy? How is the Trump administration approaching it?
A few things there. In the early days, the drive was for AI expansion and to be competitive with foreign adversaries. Now due to the amount of public pushback in red and blue localities and a more cautious approach.
I’m not seeing a lot of actual policy movement at this time.
I know the EPA is looking at the chemicals used in cooling data centers because when that water is cycled through the system, some of it is discharged into the water system, so they’re looking at the Toxic Substances and Control Act for monitoring that.
How much of an impact does this minimal federal role have on industry behavior?
Y’know, this isn’t specific to data centers. This is true for all kinds of large-scale development: there’s a need to require some sort of federal monitoring and regulation.
That’s where I see an emerging role for public health. At the federal level, there could be policy movement towards requiring some sort of environmental monitoring at data centers to make sure they’re operating responsibility. Looking at specific water use relative to water availability and what happens when there’s a time of severe, persistent drought. With air quality too — we’ve seen areas where the grid isn’t as reliable so their diesel generators are kicking on more and affecting air quality for residents.
We’re just not seeing all of that right now. We need corporate disclosure.
What do you see as the most important public health impacts from data center development?
It varies by localities. The most discussed obviously is water usage. One thing I’d note about my conversations with folks enthusiastic around emerging tech is, there are still questions that need to be asked about the capacity of localities to support a data center. Like a small town in Kansas may only be using 40% of their water for their utility needs. If a data center came online, how much of that water goes to the data center?
One area underexplored within the public health discipline is energy poverty and energy security. The ability of a household to meet the needs of everything energy provides in our lives. It’s known we have an aging electric grid but we’re not talking enough about large-scale blackouts when the grid is not sufficient to support some of these new data centers.