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Justice Brett Kavanaugh’s decision in the case of Seven County Infrastructure Coalition v. Eagle County, Colorado enlists the nation’s highest court in the campaign to reform federal environmental enforcement.

A new chapter opened for one of the country’s most important environmental laws this week.
On Thursday, the Supreme Court transformed the National Environmental Policy Act, or NEPA, an environmental permitting law that affects virtually every decision that the federal government makes. The quasi-unanimous ruling limits the law’s scope and cuts off future avenues for challenging energy and infrastructure projects under the law.
It could reshape the scale of legal challenges that projects could face in the future, giving the Trump administration — and any successive administration — greater leeway to approve energy projects.
Under NEPA, federal agencies must study the environmental impacts of their decisions before they make them. The strictest studies can run into the hundreds of pages, and they can take years to complete.
But in what was essentially an 8-0 decision, the Court ruled that federal agencies almost never need to analyze the second-order environmental effects of their decisions. In other words, an agency need only study the environmental impact of a project itself — be it a pipeline, a solar farm, or, in the case at issue, a railroad — and not its metaphorically downstream consequences. That remains the case even if a given project might indirectly make it much easier to do something with a big environmental footprint, such as drilling for oil or natural gas.
That is the clearest effect of the ruling. But Justice Brett Kavanaugh, writing for the court’s conservative majority, went much further than that summary alone suggests. In a broad and forceful ruling, he told lower courts that they should stop nitpicking the environmental studies that federal agencies must publish under NEPA to justify their own decision-making. Courts should, instead, defer to federal agencies as much as is reasonable when reviewing a NEPA study. “The goal of the law,” he writes, “is to inform agency decision-making, not to paralyze it.” (Justice Neil Gorsuch recused himself from the case because of his connection to an oil magnate who could have benefited from the ruling.)
That suggests a significant change is coming to how the court system interprets NEPA, a law that is little known to the general public but that plays a defining role in how federal agencies make decisions or approve infrastructure projects. NEPA creates a procedural requirement that federal agencies study the environmental impact of any “major decision,” but that category is so broad that it affects virtually everything the federal government does — spend money, write a new regulation, or approve a new project on federal land. The law and the yearslong lawsuits that it spawns have been blamed for delays in building solar farms and transmission lines, but also oil refineries and gas pipelines.
Kavanaugh’s ruling is “pretty striking for just how strident it is, and how assertively it tries to shut the door on further NEPA litigation,” Nicholas Bagley, a University of Michigan law professor who studies the permitting system, told me. Kavanaugh’s message to lower courts is, in essence, “We keep telling you to knock it off. You keep not listening. So knock it the fuck off,” Bagley said.
At the very least, the ruling suggests that a new phase in the effort to reform the country’s permitting laws has arrived. Now that movement has, in essence, been blessed by the Supreme Court.
The case in question — Seven County Infrastructure Coalition v. Eagle County, Colorado — concerns an 88-mile railroad proposed to connect the Uinta Basin in eastern Utah to the national freight rail network. In 2021, the Surface Transportation Board, a federal agency that regulates railroads, approved the project after completing a roughly 3,600-page study of the railroad’s potential environmental impact.
Almost immediately, environmental groups argued that the board’s study did not go far enough. The ground beneath the Uinta Basin is rich in a waxy and particularly carbon-intensive crude oil; right now, very little of that oil is extracted because the only way to get it out is by truck, along windy mountain roads. The railroad, if built, would allow for much larger volumes of crude to be transported out of the basin and sent to Gulf Coast refineries. Building the railroad, in other words, would indirectly increase local oil extraction, and thereby raise global greenhouse gas emissions.
The board argued that its NEPA study did not need to consider these downstream effects because the board itself does not regulate oil extraction — that is, it regulates the building of railroads, not what gets moved on them.
The eight justices agreed that the board was right: It didn’t have to consider the effects of second-order oil drilling when it approved the railroad. (The railroad remains on hold for other reasons, Sambhav Sankar, a senior vice president at Earthjustice, told me.) But by going further in his ruling, Kavanaugh entered into a running debate about the role of NEPA and other permitting laws in the American economy.
NEPA was never meant to play the commanding role that it does today, Kavanaugh writes. When it was first signed into law in 1970, NEPA was meant to act as a “purely procedural” check on federal decision-making. Agencies were supposed to conduct environmental studies, make their decisions, then move on. But in a famous 1971 ruling concerning a proposed nuclear power plant in Maryland, Judge Skelly Wright of the D.C. Circuit Court of Appeals transformed the law. He found that agencies had to carry out NEPA’s procedural requirements “to the fullest extent possible,” and crucially that courts could reject agencies’ analysis for lack of completeness.
Over the years, as hundreds of cases following Wright’s have added up, NEPA has turned into a “fearsome project killer,” Bagley said. Agencies spend decades of person-power and hundreds of thousands of dollars to prepare fastidious environmental reviews of their decisions. Any new infrastructure project or new policy change — even New York City’s congestion charge — requires some form of NEPA study.
Many conservatives have long opposed the modern NEPA process. But in recent years, some liberals have joined them, arguing that the law primarily slows down clean energy infrastructure and encourages NIMBYism. In practice, they say, NEPA acts as more of hindrance to the clean economy than the old fossil fuel economy: Because of a 2005 law, most oil and gas drilling has been exempt from the NEPA process, while wind farms, solar plants, and other forms of zero-carbon energy infrastructure still have to face it. Environmental groups rebut that the law is a useful tool to slow down fossil fuel pipelines, which do not generally get a NEPA exemption.
Data supports the idea that NEPA holds back clean energy projects, but that is partly because it holds back so many kinds of projects. The R Street Institute, a center-right think tank, has found that 42% of projects stalled by NEPA involved green infrastructure or conservation. Another analysis from the Center for Growth and Opportunity at Utah State University found that it takes more than two years on average for federal agencies to complete environmental reviews of solar and wind projects. Reviews for new hydroelectric or nuclear power plants take even longer.
Kavanaugh, in essence, rejects all of this. NEPA was never supposed to block or hinder large-scale energy or infrastructure projects, he writes; it was meant to “inform agency decision-making, not to paralyze it.”
“A 1970 legislative acorn has grown over the years into a judicial oak that has hindered infrastructure development ‘under the guise’ of just a little more process,” he says. When federal agencies write environmental studies under NEPA, courts should broadly defer to the decisions that they make. And even if an agency gets something wrong in its study or omits something important, that does not mean the entire study — and the decision that it justifies — should be thrown out. (There’s some irony to Kavanaugh’s call for deference to agencies here, given that the Supreme Court rejected the idea that agency regulations deserve deference last year.)
“What’s notable for me is that they didn’t just rule on the case,” Sankar, the Earthjustice lawyer told me. (Earthjustice participated in the case.) “They decided to take a broad swipe at NEPA itself, really unnecessarily.”
Alexander Mechanick, a senior policy analyst at the Niskanen Center and former White House regulatory official, agreed with Sankar about the scope of the ruling. The court’s decision “does communicate over and over again, with a heavy hand, a real desire to get lower courts out of the business of fly specking the environmental impact assessments,” he told me.
It’s this forthrightness that seems to announce a new era of NEPA jurisprudence — one where the courts will accept a level of environmental review that they may have once rejected. In a way, Kavanaugh’s ruling is a fitting sequel to Wright’s 1971 decision in that both set the tone and capture the overarching environmental concerns of their respective eras, Bagley said.
Half a century ago, Judge Wright wanted to make sure that the American public could slow the wave of infrastructure that threatened to overwhelm the country’s landscape. NEPA represented “the commitment of the government to control, at long last, the destructive engine of material ‘progress,’” he wrote, asserting that judges must make sure the law’s goals are not “lost or misdirected in the vast hallways of the federal bureaucracy.”
Now, Kavanaugh seems to fear that progress itself has been held up. He writes that the modern NEPA process, with its cycles of “speculation and consultation and estimation and litigation,” has slowed down infrastructure projects and driven up their cost. He can sound more like an op-ed writer than a legal scholar as he lays out the law’s consequences in the ruling:
Fewer projects make it to the finish line. Indeed, fewer projects make it to the starting line. Those that survive often end up costing much more than is anticipated or necessary, both for the agency preparing the EIS and for the builder of the project. And that in turn means fewer and more expensive railroads, airports, wind turbines, transmission lines, dams, housing developments, highways, bridges, subways, stadiums, arenas, data centers, and the like. And that also means fewer jobs, as new projects become difficult to finance and build in a timely fashion.
In this declaration, Kavanaugh seems to put himself on the side of a growing and tenuously bipartisan movement to reform NEPA. A 2023 debt ceiling bill, signed by President Biden, included modest reforms to the NEPA process, imposing page limits and deadlines on the strictest forms of environmental studies. A more sweeping bipartisan effort to change the law failed last year. Now, House Republicans are taking their own crack at revising NEPA, creating an optional and more expensive permitting “fast track” for developers in the reconciliation bill.
Sankar, whose organization has championed NEPA, argues that the ruling’s practical upshot will be to allow the Trump administration greater leeway to build fossil fuel infrastructure. Kavanaugh’s ruling exhibits “a shocking disregard for the realpolitik of what's going on with this administration in particular,” he said.
“As we’ve been saying all along, NEPA gets demonized as the problem,” Sankar said. With the law’s role reduced, “I think people will see that there are a lot of other things that are the problem here, and taking federal agency expertise out of the equation is not going to hurry things up.” He added that state and local governments often rely on federal NEPA reports for their own analyses, and now those reviews may be less trustworthy.
Bagley, who has generally supported permitting reform efforts, agreed that NEPA is just one of several laws holding back clean energy projects nationwide. But it is an important one, he said, and reducing its scope will likely allow more projects to happen. He added that by changing it, advocates will learn of additional bottlenecks that are holding back construction — including laws that nobody has noticed yet because they were previously less important than NEPA. Advocates can also now focus their attention on state and local barriers to building.
“If you want to look at the permitting burdens across the United States, probably 80% to 90% of them are state and local. This [ruling] isn’t going to inaugurate a new era of American dynamism,” Bagley said. “It’s a small step in the right direction.”
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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.
The fourth-generation gas-cooled reactor company ZettaJoule is setting up shop at an unnamed university.
The appeal of next-generation nuclear technology is simple. Unlike the vast majority of existing reactors that use water, so-called fourth-generation units use coolants such as molten salt, liquid metal, or gases that can withstand intense heat such as helium. That allows the machines to reach and maintain the high temperatures necessary to decarbonize industrial processes, which currently only fossil fuels are able to reach.
But the execution requirements of these advanced reactors are complex, making skepticism easy to understand. While the U.S., Germany, and other countries experimented with fourth-generation reactors in earlier decades, there is only one commercial unit in operation today. That’s in China, arguably the leader in advanced nuclear, which hooked up a demonstration model of a high-temperature gas-cooled reactor to its grid two years ago, and just approved building another project in September.
Then there’s Japan, which has been operating its own high-temperature gas-cooled reactor for 27 years at a government research site in Ibaraki Prefecture, about 90 minutes north of Tokyo by train. Unlike China’s design, it’s not a commercial power reactor. Also unlike China’s design, it’s coming to America.
Heatmap has learned that ZettaJoule, an American-Japanese startup led by engineers who worked on that reactor, is now coming out of stealth and laying plans to build its first plant in Texas.
For months, the company has quietly staffed up its team of American and Japanese executives, including a former U.S. Nuclear Regulatory Commission official and a high-ranking ex-administrator from the industrial giant Mitsubishi. It’s now preparing to decamp from its initial home base in Rockville, Maryland, to the Lone Star State as it prepares to announce its debut project at an as-yet-unnamed university in Texas.
“We haven’t built a nuclear reactor in many, many decades, so you have only a handful of people who experienced the full cycle from design to operations,” Mitsuo Shimofuji, ZettaJoule’s chief executive, told me. “We need to complete this before they retire.”
That’s where the company sees its advantage over rivals in the race to build the West’s first commercial high-temperature gas reactor, such as Amazon-backed X-energy or Canada’s StarCore nuclear. ZettaJoule’s chief nuclear office, Kazuhiko Kunitomi, oversaw the construction of Japan’s research reactor in the 1990s. He’s considered Japan’s leading expert in high-temperature gas reactors.
“Our chief nuclear officer and some of our engineers are the only people in the Western world who have experience of the whole cycle from design to construction to operation of a high temperature gas reactor,” Shimofuji said.
Like X-energy’s reactor, ZettaJoule’s design is a small modular reactor. With a capacity of 30 megawatts of thermal output and 12 megawatts of electricity, the ZettaJoule reactor qualifies as a microreactor, a subcategory of SMR that includes anything 20 megawatts of electricity or less. Both companies’ reactors will also run on TRISO, a special kind of enriched uranium with cladding on each pellet that makes the fuel safer and more efficient at higher temperatures.
While X-energy’s debut project that Amazon is financing in Washington State is a nearly 1-gigawatt power station made up of at least a dozen of the American startup’s 80-megawatt reactors, ZettaJoule isn’t looking to generate electricity.
The first new reactor in Texas will be a research reactor, but the company’s focus is on producing heat. The reactor already working in Japan, which produces heat, demonstrates that the design can reach 950 degrees Celsius, roughly 25% higher than the operating temperature of China’s reactor.
The potential for use in industrial applications has begun to attract corporate partners. In a letter sent Monday to Ted Garrish, the U.S. assistant secretary of energy in charge of nuclear power — a copy of which I obtained — the U.S. subsidiary of the Saudi Arabian oil goliath Aramco urged the Trump administration to support ZettaJoule, and said that it would “consider their application to our operations” as the technology matures. ZettaJoule is in talks with at least two other multinational corporations.
The first new reactor ZettaJoule builds won’t be identical to the unit in Japan, Shimofuji said.
“We are going to modernize this reactor together with the Japanese and U.S. engineering partners,” he said. “The research reactor is robust and solid, but it’s over-engineered. What we want to do is use the safety basis but to make it more economic and competitive.”
Once ZettaJoule proves its ability to build and operate a new unit in Texas, the company will start exporting the technology back to Japan. The microreactor will be its first product line.
“But in the future, we can scale up to 20 times bigger,” Shimofuji said. “We can do 600 megawatts thermal and 300 megawatts electric.”
Another benefit ZettaJoule can tap into is the sweeping deal President Donald Trump brokered with Japanese Prime Minister Sanae Takaichi in October, which included hundreds of billions of dollars for new reactors of varying sizes, including the large-scale Westinghouse AP1000. That included financing to build GE Vernova Hitachi Nuclear Energy’s 300-megawatt BWRX-300, one of the West’s leading third-generation SMRs, which uses a traditional water-cooled design.
Unlike that unit, however, ZettaJoule’s micro-reactor is not a first-of-a-kind technology, said Chris Gadomski, the lead nuclear analyst at the consultancy BloombergNEF.
“It’s operated in Japan for a long, long time,” he told me. “So that second-of-a-kind is an attractive feature. Some of these companies have never operated a reactor. This one has done that.”
A similar dynamic almost played out with large-scale reactors more than two decades ago. In the late 1990s, Japanese developers built four of GE and Hitachi’s ABWR reactor, a large-scale unit with some of the key safety features that make the AP1000 stand out compared to its first- and second-generation predecessors. In the mid 2000s, the U.S. certified the design and planned to build a pair in South Texas. But the project never materialized, and America instead put its resources into Westinghouse’s design.
But the market is different today. Electricity demand is surging in the near term from data centers and in the long term from electrification of cars and industry. The need to curb fossil fuel consumption in the face of worsening climate change is more widely accepted than ever. And China’s growing dominance over nuclear energy has rattled officials from Tokyo to Washington.
“We need to deploy this as soon as possible to not lose the experienced people in Japan and the U.S.,” Shimofuji said. “In two or three years time, we will get a construction permit ideally. We are targeting the early 2030s.”
If every company publicly holding itself to that timeline is successful, the nuclear industry will be a crowded field. But as history shows, those with the experience to actually take a reactor from paper to concrete may have an advantage.
It’s now clear that 2026 will be big for American energy, but it’s going to be incredibly tense.
Over the past 365 days, we at The Fight have closely monitored numerous conflicts over siting and permitting for renewable energy and battery storage projects. As we’ve done so, the data center boom has come into full view, igniting a tinderbox of resentment over land use, local governance and, well, lots more. The future of the U.S. economy and the energy grid may well ride on the outcomes of the very same city council and board of commissioners meetings I’ve been reporting on every day. It’s a scary yet exciting prospect.
To bring us into the new year, I wanted to try something a little different. Readers ask me all the time for advice with questions like, What should I be thinking about right now? And, How do I get this community to support my project? Or my favorite: When will people finally just shut up and let us build things? To try and answer these questions and more, I wanted to give you the top five trends in energy development (and data centers) I’ll be watching next year.
The best thing going for American renewable energy right now is the AI data center boom. But the backlash against developing these projects is spreading incredibly fast.
Do you remember last week when I told you about a national environmental group calling for data center moratoria across the country? On Wednesday, Senator Bernie Sanders called for a nationwide halt to data center construction until regulations are put in place. The next day, the Working Families Party – a progressive third party that fields candidates all over the country for all levels of government – called for its candidates to run in opposition to new data center construction.
On the other end of the political spectrum, major figures in the American right wing have become AI skeptics critical of the nascent data center buildout, including Florida Governor Ron DeSantis, Missouri Senator Josh Hawley, and former Trump adviser Steve Bannon. These figures are clearly following the signals amidst the noise; I have watched in recent months as anti-data center fervor has spread across Facebook, with local community pages and groups once focused on solar and wind projects pivoting instead to focus on data centers in development near them.
In other words, I predicted just one month ago, an anti-data center political movement is forming across the country and quickly gaining steam (ironically aided by the internet and algorithms powered by server farms).
I often hear from the clean energy sector that the data center boom will be a boon for new projects. Renewable energy is the fastest to scale and construct, the thinking goes, and therefore will be the quickest, easiest, and most cost effective way to meet the projected spike in energy demand.
I’m not convinced yet that this line of thinking is correct. But I’m definitely sure that no matter the fuel type, we can expect a lot more transmission development, and nothing sparks a land use fight more easily than new wires.
Past is prologue here. One must look no further than the years-long fight over the Piedmont Reliability Project, a proposed line that would connect a nuclear power plant in Pennsylvania to data centers in Virginia by crossing a large swathe of Maryland agricultural land. I’ve been covering it closely since we put the project in our inaugural list of the most at-risk projects, and the conflict is now a clear blueprint.
In Wisconsin, a billion-dollar transmission project is proving this thesis true. I highly recommend readers pay close attention to Port Washington, where the release of fresh transmission line routes for a massive new data center this week has aided an effort to recall the city’s mayor for supporting the project. And this isn’t even an interstate project like Piedmont.
While I may not be sure of the renewable energy sector’s longer-term benefits from data center development, I’m far more confident that this Big Tech land use backlash is hitting projects right now.
The short-term issue for renewables developers is that opponents of data centers use arguments and tactics similar to those deployed by anti-solar and anti-wind advocates. Everyone fighting data centers is talking about ending development on farmland, avoiding changes to property values, stopping excess noise and water use, and halting irreparable changes to their ways of life.
Only one factor distinguishes data center fights from renewable energy fights: building the former potentially raises energy bills, while the latter will lower energy costs.
I do fear that as data center fights intensify nationwide, communities will not ban or hyper-regulate the server farms in particular, but rather will pass general bans that also block the energy projects that could potentially power them. Rural counties are already enacting moratoria on solar and wind in tandem with data centers – this is not new. But the problem will worsen as conflicts spread, and it will be incumbent upon the myriad environmentalists boosting data center opponents to not accidentally aid those fighting zero-carbon energy.
This week, the Bureau of Land Management approved its first solar project in months: the Libra facility in Nevada. When this happened, I received a flood of enthusiastic and optimistic emails and texts from sources.
We do not yet know whether the Libra approval is a signal of a thaw inside the Trump administration. The Interior Department’s freeze on renewables permitting decisions continues mostly unabated, and I have seen nothing to indicate that more decisions like this are coming down the pike. What we do know is that ahead of a difficult midterm election, the Trump administration faces outsized pressure to do more to address “affordability,” Democrats plan to go after Republicans for effectively repealing the Inflation Reduction Act and halting permits for solar and wind projects, and there’s a grand bargain to be made in Congress over permitting reform that rides on an end to the permitting freeze.
I anticipate that ahead of the election and further permitting talks in Congress, the Trump administration will mildly ease its chokehold on solar and wind permits because that is the most logical option in front of them. I do not think this will change the circumstances for more than a small handful of projects sited on federal lands that were already deep in the permitting process when Trump took power.
It’s impossible to conclude a conversation about next year’s project fights without ending on the theme that defined 2025: battery fire fears are ablaze, and they’ll only intensify as data centers demand excess energy storage capacity.
The January Moss Landing fire incident was a defining moment for an energy sector struggling to grapple with the effects of the Internet age. Despite bearing little resemblance to the litany of BESS proposals across the country, that one hunk of burning battery wreckage in California inspired countless communities nationwide to ban new battery storage outright.
There is no sign this trend will end any time soon. I expect data centers to only accelerate these concerns, as these facilities can also catch fire in ways that are challenging to address.