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High winds down power lines. But high waters flood substations — and those are much harder to fix.

There’s a familiar script when it comes to hurricanes: The high winds snap tree branches and even tree trunks and whip around anything else that’s light enough or not bolted down — including power lines and distribution poles. While this type of damage can lead to large-scale outages, it’s also relatively straightforward to fix. In many cases the power comes back on relatively quickly, more like days rather than weeks or months.
But when it comes to flooding, especially in areas that do not regularly deal with big storms, the damage can be more severe, long-lasting, and difficult to repair. This is largely because what’s at risk in these scenarios is not power lines but substations. These messes of transmission and distribution lines that channel high voltage power to homes and businesses are vulnerable to rising water, and repairs can’t begin until the floodwaters recede. Often they have to be replaced entirely, which is expensive and can lead to further delays as there’s a nationwide shortage of transformers. Just one substation can support thousands of homes — a single point of failure that, when it floods, takes all its customers down with it.
Duke Energy, whose grid in the Carolinas was pummeled by Hurricane Helene, has said the damage to its system encompasses “submerged substations, thousands of downed utility poles, and downed transmission towers,” and noted that much of the affected area is “inaccessible due to mudslides, flooding and blocked roads, limiting the ability to assess and begin repairing damages.” In an update published Saturday, it stated that while more than 2 million customers had seen their power restored, about 250,000 customers across North and South Carolina remained without electricity more than a week after the storm.
Workers are “encountering more severe damage on a larger scale than we’ve ever experienced,” Duke Energy storm director Jason Hollifield said in a statement. (Duke didn’t respond to my request for comment.) One Duke employee told the local television station in Asheville, North Carolina, which saw more than three months’ worth of rain fall over three days, that a local substation would have to be completely rebuilt, a process that could take months. In Western North Carolina, the area’s Representative Chuck Edwards has estimated that 117,000 customers still lack electricity, and that while some of them will likely get it back by Sunday, others “whose properties are inaccessible or not able to receive power may be without electricity for an extended period of time as Duke Energy works to rebuild critical infrastructure.”
To prepare for the onrushing Hurricane Milton, Duke is staging thousands of “line technicians, vegetation workers, damage assessors and support personnel” in Florida, the company said. The same problem remains, however: Line technicians will not prevent substations from flooding.
While the exact effect of climate change on hurricanes and other storm categories is an area of intense debate among climate scientists and meteorologists, there’s a rough consensus that warming will cause the storms to be wetter. That means utilities will have to update their old disaster response playbooks, or else prolonged outages when an especially wet storm arrives over a flood plain.
In most hurricanes, utilities are able to pre-position workers to restore power quickly, working on knocked down poles and wires, explained Jordan Kern, an assistant professor engineering at North Carolina State University. “When trees fall on distribution lines, those are, in normal situations, easy to repair,” he told me. But, Kern said, “If the substations are flooded, you can’t do anything until the flood waters go down. They can be without power for a long time.”
Wetter hurricanes will likely mean more severe and less predictable flooding happening far away from the coasts, bringing with it risks that utilities and local governments may be less prepared to face, with costs that will ultimately be born by anyone who pays for electricity, as expensive repairs and hardening of electrical infrastructure will likely be born by ratepayers.
“Rates will necessarily rise” to deal with the higher costs of adaptation and repairing infrastructure more complex than a wooden pole, Tyler Norris, a PhD student at Duke University’s Nicholas School of the Environment, told me while driving towards Asheville to help out family impacted by the storm.
While Helene has been an especially damaging storm, the risks of wetter storms and inland flooding away from the coastal areas that are prepared for frequent hurricanes have become more apparent in recent years. While Hurricane Irene in 2011 made landfall on Long Island, its most devastating effects were felt inland due to heavy rains, especially in Vermont.
North Carolina in particular has seen a rash of nasty hurricanes in the past 10 years or so, giving Duke ample recent experience with big storms — and some indication of what a warming world could bring.
During 2018’s Hurricane Florence, which knocked out power for around a million Duke customers, “at least 10 substations required de-energization due to flooding or flood risk where heavy rainfall and resulting inland flooding,” according to a 2022 Duke climate resiliency report. The report was meant to look at the effects of climate change to the Duke system by 2050 under two emissions scenarios outlined by the Intergovernmental Panel on Climate Change, one assuming emissions start falling by 2040, the other assuming continued (some might say unrealistically) high emissions.
Under the extreme scenario, the “overall vulnerability priority of Duke Energy substations to climate-driven changes in precipitation and inland flooding is high,” the report said, while under the “middle of the road” projection, “transmission infrastructure faces a medium priority vulnerability.” In both cases, however, “without adaptation planning … substations are at the highest potential risk, with extreme heat and flooding being the greatest concerns for existing assets.”
Duke said at the time that it had “implemented permanent flood protection measures at new substations located in flood plains and substations with a prior history of flooding.” For its existing fleet, priority was being given to those substations considered particularly “at-risk,” however the flood protection plan had “not yet been universally implemented at all existing substations in the flood plain.”
“What they characterized there falls significantly short of what we just saw,” Norris said. While he noted that Duke had listed risk to substations from inland flooding as high (albeit only under the extreme scenario), it had listed the risk to the distribution of power, i.e. poles and wires, as “low” under both scenarios. “There’s been a dramatic misestimate of risk here,” Norris said.
For Duke customers, especially in the more isolated parts of Western North Carolina, they may simply have to wait for workers and parts to arrive. Repairs that could normally happen quickly will likely happen slowly as workers struggle to reach areas whose roads have been washed away. Duke said that it’s now focusing on restoring the “backbone” of the transmission and distribution system, and then is moving on to restoring fallen poles in less densely populated areas.
And it will likely happen again. Kern noted that inland flooding especially is notoriously hard to predict compared to coastal flooding from hurricanes. “Flooding is so idiosyncratic,” he said. “It’s hard for anyone to predict how flooding will affect a region. Let alone electric utilities.”
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What would happen to Project Jupiter if the Bipartisan American Affordability and Jobs Act is passed?
One of the nation’s largest data centers is struggling under permitting woes. So let’s play a game: would the bipartisan permitting bill in Congress make the path easier, or might the federal legislation be irrelevant to large hyperscalers under development today?
Meet Project Jupiter, a mega project in southern New Mexico in Dona Ana County under development by Oracle and OpenAI, with financial backing from SoftBank and political support from the Trump administration for being a part of Stargate, a major Trump administration public-private initiative boosting AI development. Project Jupiter would be one of the largest data centers in the country if completed and currently is expected to run on a microgrid powered by fuel cells converting gas to electricity, which the developers claim will burn much cleaner than a typical off-grid gas turbine power plant.
Solving the energy side of the equation is a major hurdle for Jupiter, largely because of permitting delays and legal challenges.
In mid-September, the New Mexico Supreme Court lifted a stay it placed on consideration of the project’s state air permitting application. But on Wednesday, the Santa Fe New Mexican published emails between the New Mexico Environment Department and Project Jupiter staff detailing that independent emissions modeling showed pollution would be greater than predicted by the developers, after they had already requested permission to emit more CO2 than the state’s three largest cities combined. A final decision on the air permit was expected in November; the emails suggest the deadline may slip further. After the emails were reported, Oracle declared it would try to reduce emissions from the site by more than 30%.
At the same time, the New Mexico Justice Department is opposing the Federal Energy Regulatory Commission’s environmental assessment under the National Environmental Policy Act for a gas pipeline key to powering the project. The state’s attorneys assert the agency improperly failed to examine how the data center’s use of the pipeline would affect the environment. This week, a dozen GOP attorneys general representing states with large gas industries wrote FERC insisting they ignore the state’s protests, arguing that a recent Supreme Court ruling – known colloquially as Seven County – meant the federal government doesn’t need to look at the data centers gas pipelines are feeding when the lines are reviewed. Oracle has declared a “force majeure” over the pipeline delay. Rumors have circulated that trucks may just bring gas in for operations; company representatives told the Dona Ana County Commission this week those claims were “misinformation.”
Amidst these delays and potential legal conflicts, I’ve sought to understand whether projects like these – large data centers racing to operate within the next year or two – would be affected by enactment of the Bipartisan American Affordability and Jobs Act of 2026, a major permitting reform deal negotiated in part by New Mexico’s senior senator, Energy and Natural Resources chairman Martin Heinrich.
In Washington D.C., this legislation is exciting many constituencies, including energy industry types, policy wonks, business-friendly climate advocates. At the same time, more conservation-minded environmental groups opposed to provisions benefiting the fossil fuel industry are leaning into an argument that the legislation would accelerate a new era of gas-dominant data center construction.
Last week, I wrote about the environmentalists’ argument. I also examined the parts of the bill unlocking a new transmission build-out and requiring data center ratepayer protection. If enacted, FERC would have to require utilities to charge data centers not only for the costs of new grid upgrades but the charges incurred for using the grid, too. As my colleague Robinson Meyer has written, by forcing AI infrastructure operators to pay for both embedded and incremental energy costs, the legislation would essentially mean data centers paying both to reduce rates and build new energy generation. We’re seeing in real time what happens when you don’t deal with the transmission connection system while building new grid upgrades: companies will often opt to just build their own private off-grid fossil fuel islands. In Texas, for example, we’re seeing transmission hook-up delays lead to companies just building their own gas plants instead. This is not to say companies won’t still go off the grid if this bill passes, but it’s a serious consequence of our dilapidated energy system worth considering.
So I decided to evaluate Project Jupiter as a test case. How might the permitting bill affect this project and other big data centers at a stage like it?
For starters, let's say what the permitting bill does not do. It wouldn’t change the Clean Air Act. Project Jupiter would be one of the largest data centers in the country if completed, as well as potentially one of the nation’s biggest CO2 emitters if permitted as proposed. Nothing in the bill would affect requirements that the project adhere to national air emissions standards, so it wouldn’t affect the New Mexico Environment Department’s pending decision around the project’s air permits.
Enacting BAAJA could potentially affect this sprawling data center project in extremely hypothetical ways. It would reduce legal risks associated with future interstate gas pipelines under development expected to potentially branch out to Project Jupiter, including the Desert Southwest Expansion pipeline. It’s easy to understand in the words of Robert Pattinson in Primetime how this looks: like an easier path to expanding gas generation in this area.
On renewables, the bipartisan permitting deal would codify new permitting certainty and timeline provisions that claim to make it easier for companies to pursue solar development on federal acreage managed by the Bureau of Land Management. Project Jupiter just concluded a request for proposals to procure two gigawatts of renewable energy including solar power to meet the developers’ pledge to achieve 100% carbon matching by 2031 and Thiagarajan previously told the commission they’ve examined potentially getting energy from solar projects nearby on BLM lands.
But all of this is too theoretical and the case for any individual early-stage energy project too. Not to mention that we have no idea how the Trump administration would implement this certainty language, even for Project Jupiter.
To me, if people want to earnestly understand how the bipartisan permitting bill might actually affect data centers, they need to fully consider how making it easier and more transparent to hook up to the existing electric grid could reduce how much on-site gas generation is used at AI data center operations.
Delays in state permitting for the off-grid fuel cell plant have led Project Jupiter’s developers to consider what turning to the power grid would look like. In early September during a Dona Ana County commission meeting, Oracle executive vice president Mahest Thiagarajan told the panel, “If we end up in a situation where the air permit is not actually approved, I do have to work with a grid provider. Whether it is actually part of the grid or they built the grid for me could be TBD.”
“It doesn’t need to be on the grid, but I need [a] source of power to help power the data center,” Thiagarajan said.
Commission chair Manuel Sanchez replied that the microgrid plans were established in their community benefit agreement but he supported proposals requiring data center developers paying for upgrades and directly paying to reduce electricity rates for nearby residents. “It’s actually provided a downward pressure on rates,” Sanchez said, referring directly to such a policy created by the Georgia Public Service Commission.
Thiagarajan agreed. “My current plan is to continue to work with NMED [the New Mexico Environment Division] and get the off-grid site. If for any reason we have to, because I don’t have the air permit and I have to build the site, I strongly believe it has to come with me bringing down pressure to the rates. Period. I don’t think that’s a question of, I’m not increasing the rates. I actually have to come in and say, I am lowering the rates here.”
If Congress enacted this permitting bill in the lame duck, would Project Jupiter ditch plans to be off grid? It’s challenging to prove or disprove such a hypothetical. Representatives for the project did not respond to requests for comment. But we know any attempts at grid hookups without greater ratepayer protections are only leading to more conflict locally; this week, when Project Jupiter tried proposing a hook up to the grid for emergency power, the county commission fumed. Right now, the plan is still to power Project Jupiter with the gas fuel cell generation on site.
As I concluded this research, I noticed Heinrich’s office has actually promoted news coverage about what his efforts to enact data center ratepayer protections would do to Project Jupiter.
In early August, as the Senate was leaving for a summer recess, his office republished a Santa Fe New Mexican article about legislation the senator authored – the GRID Savings Act – and its potential impact on Project Jupiter. The article claimed that if Project Jupiter was unable to get its air permit, they’d be able to get power a different way under his proposal. The local news outlet also quoted an email from Sanchez, the county commission chair, stating that Heinrich’s bill “could be an avenue for Project Jupiter to fulfill their requirements if the air permit is denied.” Sanchez did not respond to requests for comment.
So I asked Senator Heinrich’s office for comment about this republished article, as well as if his permitting deal would indeed help ensure Project Jupiter was completed and came online. To conclude this story, here is their full statement:
The Senator has been clear that building big things responsibly means putting communities first. As he stated in his interview with the Albuquerque Journal, Project Jupiter botched community engagement from the start.
BAAJA is about making sure we build the energy infrastructure we need while keeping costs down for families and small businesses in New Mexico and across the country. The legislation would help get new energy generation, primarily clean energy, on the grid. By getting the energy onto the grid, states like New Mexico, which has enacted the Energy Transition Act, can continue working to ensure the energy powering our grid is increasingly clean.
The Senator has fought to ensure that growing energy demand doesn’t come at the expense of New Mexicans’ electricity bills by requiring data centers to pay for all of their associated transmission costs, rather than those costs shifting onto ratepayers. Ultimately, the Senator strongly believes that any major development, including data centers, should come as a benefit to the communities that host them, not a burden — and that starts with meaningful community engagement and real benefits for New Mexicans.
To be clear, BAAJA is federal legislation focused on energy infrastructure and grid connectivity. It does not ‘permit’ data centers. State and local government approval is still required. The Senator's legislation addresses the federal energy infrastructure challenges associated with a grid that cannot keep up with demand; it does not circumvent the state and local processes that determine whether Project Jupiter moves forward.
Media representatives for Project Jupiter did not respond to requests for comment.
And more of the week’s top news around project fights.
1. New England (and Maryland) – The Trump administration is still messing with offshore wind farms, even while trying to pass a permitting reform deal. Examining the court filings reveals why they may feel empowered to do it — and I’m not sure how this ends.
2. Columbia County, N.Y. – New York’s renewable energy permitting office has rejected an upstate solar farm on farmland as a House Democrat representing the area joined hands with the Trump administration in publicly railing against the project.
3. Cumberland County, N.J. – The Vineland data center project is impacting the sector’s reputation in the Garden State.
4. Hood County, Texas – It looks like this corner of Hill Country is going back to court over a data center.
These seven elections could change state energy policy.
No matter how well Democrats do in the House and Senate in November, it’s unlikely to mean anything new on climate policy in Washington, D.C., for as long as Donald Trump remains in the White House.
That is not true when it comes to the other elections this year.
Several states are on the verge of a possible Democratic trifecta, meaning unified control of both chambers of the state legislature and the governor’s mansion. It’s a position that could enable such states to either top off existing climate and energy policies passed in the last decade or to make the first real run at climate legislation in recent history.
There are also several races for control of public utilities commissions — and, in turn, for influence over rates and the potential adoption or expansion of clean energy — that are being closely watched.
Here are some of the biggest climate races beyond the House and Senate.
Minnesota passed its comprehensive climate legislation in 2023 after Governor Tim Walz won reelection in 2022 and the state Senate flipped to Democratic control. The bill included a 100% clean energy goal for 2040. Almost a year after Walz signed his bill, Michigan Governor Gretchen Whitmer signed her own, with a 100% clean energy target for 2040, along with energy efficiency and permitting streamlining. Walz would also sign a follow-on permitting bill in 2024. That November, however, Democrats lost control of both state houses (sort of — you’ll see).
Now many climate advocates and strategists look forward to possibly regaining trifectas in the two upper Midwestern states. “They’re in a spot where they haven’t been able to pass anything for two years,” Caroline Spears, the executive director of Climate Cabinet, a nonprofit advocacy group, told me. She said a priority for both states would be writing laws specific to data centers to make sure the energy they use is clean and they don’t increase costs for residential ratepayers.
“What you’re able to do when you have multiple bites at the apple is change your existing energy policy to match the current market and match the current needs, and that’s what Minnesota and Michigan have to do now,” Spears said.
In the case of Michigan, the House of Representatives stands at 58 Republicans to 52 Democrats, while the Senate is 20 Democrats to 18 Republicans. In Minnesota, Democrats have a one-seat edge in the House of Representatives, with 67 seats, compared to the Republicans’ 66 thanks to a Republican resignation (68 are required to reach a majority). But the House is still under a power-sharing agreement with a Republican speaker. Ballotpedia currently rates the possibility of a Democratic trifecta in either state as a “toss-up,” although Minnesota has a slightly easier path.
In both Michigan and Minnesota, a trifecta could deliver “policies that are focused on reigning in utilities’ profits to bolster affordability,” Courtney Brady, Evergreen Action’s senior Midwest director, told me.
“Really strong guardrails are needed in Michigan to ensure that data centers and utilities that are providing them energy have to continue to abide by the state’s clean energy laws,” Brady added.
Michigan Democratic gubernatorial candidate and Secretary of State Jocelyn Benson said she would “ban rate increases that are only being used to pad profits” and implement performance-based standards for utility payouts. She also said she would “conduct a comprehensive audit of our power grid and address the vulnerabilities and outdated infrastructure of our aging energy infrastructure.” Benson’s energy platform “heavily focuses on affordability,” Charlotte Jameson of the Michigan Environmental Council, a clean air and water nonprofit, told me.
Amy Klobuchar, the Democratic candidate for governor in Minnesota, has been less specific, typically including utility costs in a laundry list of affordability items including health care, housing, and child care.
And while Michigan does have a clean power standard, “We’ve not in Michigan really tackled transportation sector emissions, or frankly, housing and buildings,” Jameson said. A Democratic trifecta could shift transportation spending toward mass transit and away from lane widening, Jameson added, and could devote resources to electric-vehicle charging. Benson has also supported bringing high-speed rail to Michigan.
While Michigan and Minnesota have passed climate legislation that could be revisited for the age of load growth, several states may elect Democratic trifectas for the first time in decades, giving them a first shot at climate policymaking. Strategists and activists are targeting Wisconsin, Arizona, and Pennsylvania.
In Wisconsin, Republicans have an 18-15 majority in the state Senate, with half the seats up for reelection; Democrats only need to flip two. To gain control of the state Assembly, Democrats would need to flip five seats in the 99-member chamber.
Any energy legislation in the next session would likely address data center construction and ratepayer protection, including empowering utility regulators to better scrutinize requests for new gas plants and demand projections, Brady told me. Wisconsin Democratic gubernatorial candidate David Crowley has also proposed bolstering the state’s existing weatherization and efficiency programs.
In Arizona, where Republicans have a four-seat majority in the state Senate and a 33-27 majority in the House of Representatives, the oncoming Democratic trifecta is always an election away. While Arizonans have elected Democrats to both U.S. Senate seats — and to governor, with Katie Hobbs running for reelection — the party hasn’t controlled any house of the Arizona state legislature since the early 1990s. This has meant that progress on energy legislation has so far largely consisted of Hobbs vetoing anti-renewables legislation passed by Republican majorities.
A Democratic majority could do more to encourage solar development in the sunny state. “The thing we’ve always been pushing for with the Arizona state legislature in getting to a trifecta is any kind of clean energy incentive bill,” John Qua, campaign director at Lead Locally, a group that works to elect progressive candidates, told me. He also said a Democratic majority in the statehouse could implement “guardrails” on energy and water use by data centers in the state.
In Pennsylvania, Republicans hold a four-seat majority in the state Senate while Democrats have a three-seat majority in the House of Representatives. With Democratic Governor Josh Shapiro likely cruising to reelection, climate advocates are looking at maybe finally having an opportunity to pass legislation in a major energy-producing and exporting state with relatively little renewable generation. This could include beefing up standards for clean energy generation for the state’s utilities and getting the Senate to agree to a community solar bill.
Qua said that majority makers in the state legislature support “strong regulations of data centers somewhere between very tough guardrails and moratoriums,” and would likely push Shapiro to continue his turn against rampant data center development.
The 2025 Georgia Public Service Commission elections revolved almost entirely around data centers and electricity costs and resulted in two massive Democratic wins for the utility regulator. Now one of those commissioners, Peter Hubbard, is running for reelection following his special election victory, and another Democrat, Shelia Edwards, could flip partisan control of the PSC if she and Hubbard both win. A super PAC connected to the solar industry is spending $250,000 in the race to support the two Democrats.
“The solar and storage industry is building political power by investing in high-impact local elections like the Georgia PSC races, where policymakers have significant influence over permitting, utility policy, regulation, and energy markets,” Steph Bosh, board chair of the Community Clean Energy Coalition, said in a statement. “Building a durable network of solar and storage champions across the country is a long-term strategy, not a one-year effort, and we’re focused on scaling that work with industry buy-in.”
A Democratic PSC would likely look more skeptically on deals between data center developers and Georgia’s dominant utility, Georgia Power, and would be more friendly to deployment of solar and storage to meet the state’s growing electricity needs.
The other utility regulator race getting national attention is the Arizona Corporation Commission, which has two seats up for election this year. Arizona’s Democratic Attorney General Kris Mayes has tangled with the Republican-controlled board over data centers and the possibility of shifting costs towards ratepayers. The Commission currently has five Republicans, but both Qua and Spears told me part of the challenge is getting voters — who may be voting for Hobbs and other Democratic candidates — to realize the Corporation Commission is a partisan race at all. “It’s standard for most people to say, ‘I think I know what the Arizona Corporation Commission is, but I'm just not sure,’” Spears told me.
“In terms of our get-out-the-vote work, we are mostly focused on hiring organizers for the state legislature,” Qua said. “And then as a second ask: ‘Also, have you heard of the corporation commission?’”