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We’re worse off than ever — but on a better track.

What a strange time to be thinking about climate change. I can remember few previous moments where the danger of the climate threat was as apparent — or as inescapable.
A massive heat wave has covered much of the Northern Hemisphere, sending temperatures from Beijing to New York to Rome into the 80s or 90s. Phoenix, Arizona, has just recorded — for the first time ever — 19 days in a row with a high above 110 degrees Fahrenheit. On Sunday, a weather station in western China recorded that country’s all-time hottest temperature: 126 degrees Fahrenheit. Wildfires are raging across southern Europe and northern Canada.
Nor is the land alone aflame. The oceans have set an all-time heat record, smashing the previous record set in 2016 and continuing to meander higher. The Atlantic Ocean is particularly stricken: The water near southern Florida, normally in the mid-80s at this time of year, has reached a stunning 98 degrees.

But this is only a symptom of a broiling year. Last month was the warmest June ever measured, and 2023 is now more likely than not to be the warmest year ever measured. The nine hottest years on record are now the most recent nine years. If 2023 sets the all-time record, we will go 10 out of 10.
Even the stranger symptoms of climate change are becoming apparent. Scientists have long warned that as the climate warms, the atmosphere will hold more moisture, potentially turning what were once “normal” rain storms — summer thunderstorms that did not originate as a hurricane or tropical storm — into torrential downpours. Well, a series of normal seasonal storms just deluged the Northeast, flooding Vermont’s capital and paralyzing regional travel. On Sunday, six inches of rain fell in less than one hour in Bucks County, Pennsylvania, killing five people. Although these extreme events have not been directly attributed to climate change, they are exactly what climate scientists expect to see more of as global warming continues.
The effects of climate change are becoming unavoidable, omnipresent. In Washington, D.C., where I live, we are locked in a particularly perverse summer pattern where the air will either be extraordinarily hot and humid (because a south wind is blowing) or cooler but filled with toxic wildfire smoke (because a north wind is blowing). There is, in other words, no respite from climate impacts for the next several months: We get extreme heat or dangerous air.
It is shocking, astonishing, almost unreal. The MSNBC anchor Chris Hayes has compared these weeks to the moment in the film Don’t Look Up, when a comet, bound for a collision course with Earth, first appears in the night sky. The thing that we — in the broadest definition of we — were warned about has arrived. It is all the worse for the fact that, in all likelihood, this is one of the chillier summers of the rest of our lives.
And yet — although this may strike some readers as delusion — I will be honest that I am not filled with despair. In all honesty, I felt far worse about our ability to address, deal with, and adapt to climate change last summer. My mood was blackest almost exactly a year ago.
Perhaps you have forgotten. For more than a year, Senator Joe Manchin had been negotiating with Senate Majority Leader Chuck Schumer over a capacious spending package called “Build Back Better.” It was a messy and frustrating thing to watch. Manchin could be a fickle negotiator, backing programs one day only to renege the next, but Schumer too sometimes seemed incapable of understanding Manchin’s demands.
Then, on July 15, 2022, Manchin abruptly pulled out of the talks. It seemed like the effort to pass a reconciliation bill had fallen apart. For the third time in as many decades, the Democratic Party — and specifically the Senate — had blown its chance to pass a climate law. The United States would remain the global laggard, if not the antagonist, of the fight against climate change.
And I despaired. Even though I had reported on climate change for eight years, the outlook then seemed worse than during any moment of the Trump administration. At least during that farce of a four-year term, one could point to hopeful signs in the real economy — like the rapid growth and falling cost of renewables — and wonder if decarbonization might eventually win the day.
But Manchin’s betrayal was an irreversible defeat, one that would condemn the United States to a backwater and retrograde role in the global energy system. China and the European Union, it seemed to me, were now set to dominate the renewable and electric vehicle industries while their American competitors fell behind. As an American who wished to see his country play a positive role in the climate fight, that mortified me; as an American who had to live in the United States, it scared me. Oil and gas companies would now deepen their influence over national politics, I feared, turning America into the world’s most powerful petrostate. Manchin, almost single-handedly, had set back the global climate fight almost a decade and locked in millions of tons of dangerous, wasteful carbon pollution.
And then a miracle happened — one so familiar to us now that perhaps we have forgotten how astonishing it seemed at the time. In those final weeks of July, Manchin — motivated, perhaps, by the wave of popular revulsion that greeted his initial withdrawal — had secretly restarted negotiations with Schumer. On July 27, the two men unveiled a new deal on climate, healthcare, and taxes. The ever-canny Manchin christened it “the Inflation Reduction Act.”
More miracles, now. The Senate — the long-standing enemy of global climate policy, the legislative body that had euthanized climate bills in the 1990s and 2010s — quickly passed the IRA. The House of Representatives galloped behind it. Biden signed it into law. And suddenly, for the first time in my life, the United States had something approaching a climate policy.
As the one-year anniversary of the IRA approaches, we’re going to see many reflections on how the law is going. (I’ve already written one.) Is the IRA working?, we’ll ask. Will it decarbonize the economy fast enough? What other policy do we need?
Those are crucial questions — and questions that this publication was founded to cover. But I hope we can remember how astonishing it is that the IRA exists at all. In November 2016, in March 2020, in November 2021 — even in July 2022 — I was not certain that America would ever pass a climate law.
From 1990 to 2022, the defining and unavoidable fact of American climate policy was that it barely existed. That is — somewhat unbelievably to me — no longer the case. It cedes neither perfection to the IRA nor improper deference to the Biden administration to say that it is okay to feel pretty good about that. Progress is possible. The one sure thing about the status quo is that it will change.
And it will change again. In the coming years, America will discover what much of the world already knows, which is that decarbonization is an extraordinarily difficult task. It will be grueling as a political question, as a policy question, as economics, as engineering, as techne. Meticulous mineral, industrial, and agricultural supply chains must be spun up at the same time that others — primarily the fossil-fuel industry, but also the global steel and cement complex that breeds humanity’s environment — must be profoundly reformed or shut down.
And climate change’s impacts — many times worse than this summer’s — will keep afflicting us. Scientists have warned for 20 years about the “hockey stick” rise of global temperatures, but as the writer Tim Sahay has put it, we are about to get whacked by that hockey stick, over and over and over again. It will hurt. Future political ruptures and defeats are coming, too, perhaps even more dreadful and deadly than those of the 2000s or 2010s.
But when and if those calamities surround us, I will want to remember that progress is possible, and that we can be as astonished by grace and rescue as by anguish and peril. Years ago, I read about a newspaper headline that announced the outcome of the Battle of Gettysburg. “TREMENDOUS VICTORY IN PENNSYLVANIA,” it said, and then, below: “Reverent Gratitude of the People.” Reverent gratitude — not a phrase that climate writers use too often, and not one that I would ever use to describe a politician. But when and if humanity triumphs over climate change, and brings our little biosphere into a peaceful and teeming bounty, I do think we will feel a reverent gratitude — for what we will have learned, for what we will have done, and for what we will have averted. And on that day, a billion anonymous heroes will have helped secure that victory, and a trillion contingencies will have whispered it into being.
Here in the Northern Hemisphere, the day is searing and the rains are agonizing. The way before us is long and darkening. If you find yourself surprised by gratitude, hold fast to it.
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The latest forecast from BloombergNEF raises its estimate for AI electricity demand by 83%.
Energy analysts at BloombergNEF predicted last year that U.S. data center electricity demand would reach 106 gigawatts within the next decade. In its latest outlook, released Tuesday, the group increased its forecast by 83%, to 194 gigawatts — enough to light up 150 million homes, or roughly every single household in the country today.
Even that may be a conservative estimate. If data center developers were to max out the total number of the high-powered chips used to train and operate AI models forecast to be delivered by 2035, electricity demand would reach 229 gigawatts.
Over 100 gigawatts of that demand has entered the development pipeline since the beginning of this year, the result of both rising demand for artificial intelligence and shortened construction timelines for data centers. Some developers have oriented their site selection around energy availability, redeveloping brownfield energy generation sites for quick access to electricity and developing relationships with utilities. Others have eschewed grid interconnection entirely and instead relied behind-the-meter power generation.
As Mark Daly, head of technology and innovation at BNEF and a co-author of the report, pointed out to me, a growing share of the project pipeline comes from first-time developers. He and his colleagues project that non-hyperscaler data center capacity will nearly quintuple over the next decade, as hyperscaler capacity almost triples. That could ultimately create pipeline risks, however, as small-scale developers lack the capabilities of more experienced developers to optimize around pre-construction bottlenecks and navigate rapidly growing local opposition. Although local opposition to data centers has become prevalent, historic trends and predictions on how quickly developers are able to navigate hostile environments are built on the proficiency of experienced developers. Because first-time developers may face more challenges, Daly told me that data center projects overall “would see an increase in the number of delays.”
All of this, of course, comes with a big asterisk. The data center sector is rapidly evolving, and therefore highly uncertain. Among leading market research firms, BNEF said, there is a 100-gigawatt spread between the lowest and highest predicted electricity demand from data centers in 2030. Driving this spread are differences in assumptions about the average development timeline for a data center project. Daly told me that BNEF’s “project-based estimate is middle-of-the-road to bearish compared to other outlooks,” but also acknowledged that the fickle nature of local opposition on development timelines may place more constraints on future data center development than currently modeled.
No matter which prediction turns out to be most accurate, hourly U.S. electricity demand will come under intensifying pressure. BNEF predicts that average hourly U.S. electricity demand from AI workloads will grow five-fold over next nine years, reaching 120 gigawatts by 2035. That will put data centers at 12% of total electricity consumption on average by 2030, and 20% in 2035, up from 5% in 2025, according to figures from the International Energy Agency. This will put particular strain on electricity prices in markets like the Mid-Atlantic’s PJM, where data centers already comprise nearly a third of electricity consumption, and Texas’ ERCOT, where data centers currently consume a fifth of the market’s electricity.
Even the most conservative bet on future data center electricity demand is a scenario we’re not prepared for. If the Electric Power Research Institute’s prediction that just 56 gigawatts of new data center capacity will be up and running by 2030 — the lowest estimate BNEF cited — that would still consume the equivalent of Sweden’s total energy supply. Absent investments from utilities into grid resilience and intensive permitting reform to speed up renewable energy siting and development, PJM and ERCOT customers will not be the only ones feeling a serious squeeze in their wallets when their monthly utility bills arrive.
Current conditions: Tropical Depression Two strengthened into Tropical Storm Bertha yesterday, recycling the name of the 1996 Atlantic hurricane season’s first major storm • Floods from the monsoon season killed at least four people in Vietnam and left as many missing • Lightning in Utah sparked the state’s latest wildfire, the Meeks Fire, near the Strawberry Reservoir.
President Donald Trump’s on-again, off-again feud with America’s northern neighbor is, as of Monday, back on again. The White House imposed 50% tariffs on most Canadian goods, accusing the nation’s geographically nearest ally and closest cultural bedfellow of unfairly discriminating against American automotives, alcohol, and dairy products. The move threatens to unleash what the Associated Press called “a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump’s return” to office.
In its announcement, the Trump administration said the new tariffs would “apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement,” referring to the Trump-negotiated North American free trade agreement, which the U.S. opted this month not to renew. This struck my colleague Robinson Meyer as ominous. “If the White House now thinks it can levy taxes despite that pact,” he wrote in yesterday’s Heatmap Daily newsletter, “then the risks for Ford, General Motors, and their suppliers have increased.”
Perhaps the only thing growing faster than voters’ antipathy toward data centers is the market’s desire for more of them. Demand for data centers is ballooning at such a rapid clip that BloombergNEF just raised its total forecast for 2035 by a jaw-dropping 83%. The latest data outlining the best-case scenario from the energy consultancy, released Tuesday morning, shows the total installed capacity of U.S. data centers reaching 194 gigawatts in the next nine years. The surge reflects how quickly new server farms are flowing into the project pipeline. In a bid to hedge against the continued expansion, BNEF created a new scenario based on the implied power demand of forecast shipments of microchips for AI computers up to 2033. This scenario implies an even greater need for power: 229 gigawatts of demand from data centers in just the next seven years. And that doesn’t count the continued growth of demand from data centers carrying out non-AI functions, such as traditional cloud computing workloads. This comes as the latest Heatmap Pro polling shows that seven in 10 Americans now oppose data centers in their backyard, a marked shift from last September, when the same survey showed voters evenly split in support and opposition.
That ballooning demand is already showing up in power markets. Of the $16.4 billion in charges from PJM Interconnection’s most recent capacity auction, $6.3 billion — some 38% — stems from data centers. That’s what Joseph Bowring, president of PJM’s independent market monitor Monitoring Analytics, told Utility Dive last week. In the last four base capacity auctions the nation’s largest grid operator held, 46% of capacity charges were driven by data centers. “PJM is continuing to act like it’s business as usual,” Bowring told the trade publication Friday. “You have to open your eyes and recognize that it is really a paradigm shift, and failing to do that imposes costs on other customers.”

On a logical level, it’s a simple supply and demand problem. The supply of electricity is not growing as quickly as demand, all while the Trump administration eliminates subsidies that once buoyed investments in new supply. As a result, corporate electricity deals look poised to increase in price. But not for every generating source. New estimates from LevelTen, a marketplace for power purchase agreements, found that solar PPAs were 5% cheaper in the second quarter of this year compared to the first quarter. In a piece by my colleague Matthew Zeitlin, LevelTen attributed the decline to an especially steep drop in prices in California’s electricity market. Excluding CAISO, solar PPA prices nationwide dropped slightly less than 2%. While hyperscalers are still buying solar, LevelTen found that commercial and industrial buyers are pulling back, creating a “continued softening in the market’s buy-side.” “We saw a lot less corporate energy buyers in the space in 2025 — 40% less — and that is just due to the increase of hyperscalers and data centers getting projects and snapping them up quickly,” Sarah Wolf, LevelTen’s director of North American transactions, told Matthew.
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Ah, Germany. The land of the Autobahn. Diesel-powered industry. The purring engines of BMWs, Porsches, and Mercedes-Benzes. The nation’s automotive might makes its latest milestone particularly important: Electric vehicles just outsold gas and diesel cars for the first time. New data from the Federal Motor Transport Authority shows that Germans registered 84,057 new electric vehicles in June, a more than 78% year-over-year increase. Traditional hybrids, meanwhile, saw 83,315 registrations, followed by gasoline-powered cars with 60,796, diesel with 33,862, and plug-in hybrids with 32,212. “The automotive history books will need a new page sooner rather than later, after electric cars outsold every other fuel type in Germany for the first time,” InsideEVs reporter Iulian Dnistran wrote. “It’s a huge shift in Europe’s biggest car market, which has traditionally been associated with diesel-powered cars that could travel hundreds of miles at highway speeds without breaking a sweat.” The Tesla Model Y was by far the best-selling EV in Germany, with nearly twice as many registrations as the No. 2 vehicle, the Volkswagen ID.3.
Putting on my Mesopotamian metal merchant hat again: Copper prices are back up. The price of the metal needed for virtually all electrical infrastructure rose 1.3% to just under $14,000 per metric ton, according to Mining.com. The price ultimately hovered at the red metal’s record set in early June. The spike stems from data showing rising tightness in the Chinese market, namely a hike in the premium buyers will pay in Shanghai for shipments of the metal. The price hiked further after a series of storms halted production in Chile for a few days.
While the West dithers on hydrogen, China is making huge strides. It already may be too late to catch up to Beijing on manufacturing the key machinery needed to produce the zero-carbon fuel. The latest data point, via Hydrogen Insight: China just shipped its largest electrolyzer order yet to Europe, via Romania.
A new report from LevelTen Energy shows that advance purchase prices are down for solar but up for wind.
The renewables market is in a state of flux. On the one hand, the tax credits that were a key pillar of wind and solar project financing have started to expire, while the race to be up and running in time to claim those that remain is on.
At the same time the renewables industry is getting whacked by federal tax policy, it’s also getting a shot in the arm from hyperscalers and data center developers, many of whom are hungry for power that can be deployed quickly to the grid and complies with their clean energy pledges.
“There’s a massive onslaught of demand, not enough supply to meet that demand and then Trump’s administration effort to slow down certain types of supply,” Jon Powers, the president of solar and storage developer CleanCapital, told me, describing how data center buyers are snapping up whatever power they can.
So what does this mean for pricing in the market? LevelTen, a marketplace for power purchase agreements, looked at the data and, in a report released Tuesday, found that solar PPAs were almost 5% cheaper in the second quarter of this year compared to the first quarter.
LevelTen attributed this decline in part to an especially steep drop in prices in CAISO, the California electricity market; excluding CAISO, solar PPA prices dropped slightly less than 2%. And while those hyperscalers are still buying, LevelTen found, other commercial and industrial customers are pulling back — what the analysts described as a “continued softening in the market’s buy-side.”
“We saw a lot less corporate energy buyers in the space in 2025 — 40% less — and that is just due to the increase of hyperscalers and data centers getting projects and snapping them up quickly,” Sarah Wolf, LevelTen’s director of North American transactions, told me.
To explain California specifically, Wolf said that the market there tends to be more volatile than in the rest of the country due to the expense and regulatory hurdles to development. With fewer new projects coming online, especially as compared to a larger, more light-touch market like Texas, individual project pricing can swing average prices more.
The tax credit cliff is “creating this very competitive atmosphere, where buyers are feeling like — in order to safe harbor their equipment, to keep on the development timelines that they have — they need to get a PPA in place,” Wolf said. “They’re looking competitively for a buyer. That’s driving some pricing down.” The same holds for renewables developers, who have wanted to get a PPA in place as quickly as possible, giving leverage to buyers who can demand lower prices.
The other factor driving down prices LevelTen identified was potential revisions to standards issued by the Greenhouse Gas Protocol, which are currently the subject of a long and fraught overhaul process.
“We have many buyers who are fully leaning in and want to contract now,” Wolf said. “And we have buyers who are in a kind of a ’wait and see’ — they want to better understand what that’s going to be, so there’s not a risk that they might have to unwind something.”
As for wind, PPA prices have actually risen, according to LevelTen’s data — up 5.5% on the quarter and 17.5% on the year. “We’re also seeing wind just being less competitive than solar,” Wolf added.
The report attributed this to tariffs, gas prices pushing up delivery costs, and the “ongoing federal permitting bottleneck that has largely ground new-build wind development to a standstill.” That means specifically the Department of Defense’s efforts to hold up wind projects on potentially spurious national security grounds.
This has meant a “fast-dwindling pipeline of viable wind assets,” LevelTen’s report says, “and price premiums for fully permitted projects available for offtake.”
In short, the best news for individual wind developers may be bad news for the industry — and the climate — as a whole.