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On fusion’s big fundraise, nuclear fears, and geothermal’s generations uniting

Current conditions: New Orleans is expecting light rain with temperatures climbing near 90 degrees Fahrenheit as the city marks the 20th anniversary of Hurricane Katrina • Torrential rains could dump anywhere from 8 to 12 inches on the Mississippi Valley and the Ozarks • Japan is sweltering in temperatures as high as 104 degrees.
The Environmental Protection Agency is preparing to propose a new Clean Water Act rule that would eliminate federal protections for many U.S. waterways, according to an internal presentation leaked to E&E News. If finalized, the rule would establish a two-part test to determine whether a wetland received federal regulations: It would need to contain surface water throughout the “wet season,” and it would need to be touching a river, stream, or other body of water that flows throughout the wet season. The new language would require fewer wetland permits, a slide from the presentation showed, according to reporter Miranda Willson. Two EPA staffers briefed on the proposal confirmed the report.
The new rule follows the 2023 Supreme Court decision in Sackett v. EPA, which said that only waterways “with a ‘continuous surface connection’ to a ‘relatively permanent’ body of water” fell under the Clean Water Act’s protections, according to E&E News. What “relatively permanent” means, however, the court didn’t say, nor did Biden’s EPA. The two EPA staffers, who were granted anonymity to avoid retribution, “said they believed the proposal was not based in science and could worsen pollution if finalized,” Willson wrote.
Investors are hot on the Massachusetts Institute of Technology spinoff promising to make fusion energy a reality. Commonwealth Fusion Systems netted an eye-popping $863 million in its latest fundraising round. In a press release Thursday, the company said that its “oversubscribed round of capital is the largest amount raised among deep tech and energy companies since” its $1.8 billion financing deal in 2021. Commonwealth Fusion will use the funds to complete its demonstration project and further develop its proposed first power plant in Virginia. To date, the company said, it has raised close to $3 billion, “about one-third of the total capital invested in private fusion companies worldwide.” It’s a sign that investors recognize Commonwealth Fusion “is making fusion power a reality,” CEO Bob Mumgaard said.
The fusion industry has ballooned over the past six years. “It is finally, possibly, almost time” for the technology to arrive, Heatmap’s Katie Brigham wrote last year, noting: “For the ordinary optimist, fusion energy might invoke a cheerful Jetsons-style future of flying cars and interplanetary colonization. For the cynic, it’s a world-changing moment that’s perpetually 30 years away. But investors, nuclear engineers, and physicists see it as a technology edging ever closer to commercialization and a bipartisan pathway towards both energy security and decarbonization.”
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A record 75 gigawatts of new generating capacity hooked up to the U.S. power grid last year, a 33% surge from the previous year, thanks to new federal regulations aimed at streamlining the process. That’s according to new data from the consultancy Wood Mackenzie published Thursday. The report found that the Federal Energy Regulatory Commission’s Order No. 2023, issued in July 2023, along with other reforms by independent system operators, have had a “considerable impact on processing interconnection agreements, by driving improvements through reducing speculative projects and clearing queue backlogs.” While connections increased, regional grid operators received 9% fewer new project entries and saw a 51% uptick in non-viable projects since 2022.
Solar and storage technologies made up 75% of all interconnection agreements in 2024, equaling about 58 gigawatts. Wood Mackenzie projected that the sectors will retain a similar market share in 2025. Natural gas saw an increase in interconnection requests since 2022, adding 121 gigawatts of capacity. New gas applications are already breaking annual records this year. But overall the number of gas projects that successfully hook up to the grid is down 25% since 2022.
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Almost 200 people have left the Nuclear Regulatory Commission since President Donald Trump’s inauguration in January, according to new estimates published Thursday in the Financial Times. Of the 28 officials in senior leadership positions, nearly half are working in an “acting” capacity, and only three of the five NRC commissioner roles are filled. “It is an unprecedented situation with some senior leaders having been forced out and many others leaving for early retirement or worse, resignation,” Scott Morris, the former NRC deputy executive director of operations, who retired in May, told the newspaper. “This is really concerning for the staff and is one of the factors causing many key staff and leaders to leave the agency they love ... creating a huge brain drain of talent.”
The exodus comes as Trump is pressing the agency to dramatically overhaul and speed up its review and approval process for new reactors. Supporters of the president’s effort say the NRC has stymied the nuclear industry for decades, and a future buildout of new reactors requires clearing house. But skeptics of the burn-it-all-down approach warn that the atomic energy industry’s success in avoiding major accidents since the 1979 partial meltdown at Three Mile Island is owed to NRC oversight, and that the agency’s processes have actually protected nuclear developers by avoiding frivolous lawsuits and not-in-my-backyard types.
Geothermal giant Ormat has reigned over the global industry of harvesting energy from hot underground reservoirs for the past 60 years. Now a new generation of companies is promising to tap the Earth’s heat even in places without water by using fracking technology to drill much deeper, vastly expanding the potential for geothermal. And Ormat has placed a big bet on one. On Thursday, the company inked a strategic partnership with Houston-based Sage Geosystems. As part of the deal, Sage will build its first commercial power plant at an existing Ormat facility in Nevada or Utah, significantly speeding up the timeline for the debut generating station. Sage CEO Cindy Taff told me the plant could be online by next year. “Ormat’s chosen a winner,” Yakov Feygin, a researcher at the Center for Public Enterprise who co-authored a report on next-generation geothermal, told me.
A majority of U.S. voters are still unfamiliar with geothermal power, according to a new poll from Data for Progress I reported on this week. When exposed to details about how the technology works, however, support grows among voters across the political spectrum. Republicans in particular are supportive.

The Grammy- and Oscar-award winning New Orleans jazz and funk singer Jon Batiste released a new song to mark the 20th anniversary of Hurricane Katrina, the catastrophic storm that flooded his home city. Dubbed “Petrichor,” a word that describes the scent of earth after rain, the lyrics unfold like a haunting hymn over a driving beat. “Help me, Lord / They burning the planet down / No more second linin' in the street / They burning the planet down, Lord / Help me, Lord / No more plants for you to eat.” In an interview published in The Guardian, Batiste said the song was meant to be a statement. “You got to bring people together. People power is the way that you can change things in the world,” he said. “It’s a warning, set to a dance beat.”
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What’s the deal with all those “America Connects” videos?
The data center lobby is launching a big PR blitz on television and social media, racking up millions of views on evidently AI-generated content boasting economic impacts from new projects and hitting against criticism around energy and water use.
In an interview with me Wednesday, Data Center Coalition CEO Josh Levi explained how and why his organization – the largest and most prominent data center trade group – stood up an “evolving” national advertising campaign called America Connects.
Like me, up until now, you might’ve interacted with the campaign’s materials without knowing it. For weeks I’ve been getting texts from people in my life who know I write about data centers asking if I’d seen these ads on TV streaming platforms and social media sites boasting benefits from data centers, or pushing back on complaints about energy and water use. Most of the videos were quite similar, appeared to be generated using AI (with no AI labeling), and were racking up millions in views and impressions.
“Our paychecks, our hospitals, our national security – all run through data centers,” states one voiceover in a YouTube ad targeted at the Longhorn State with more than 12 million views as of today.
“In Texas, they’re doing more than keeping us connected. Data centers support high-paying jobs and pay billions in taxes. Money that can lower your bills, make schools and roads better and communities safer. And new technology means data centers consume minimal water while funding new power generation for everyone. Data centers: built in Texas. For Texas.”
These videos each are hosted on channels named for specific campaigns in individual states. In Georgia, it’s called Connected Georgia. There’s a Texas Connects, an Indiana Connects, and a Pennsylvania Connects. At least eight state campaigns are happening right now and I’m told more should be expected in the near future. Each state campaign has a near-identical website with links to their promoted videos, statistics about state-level tax contributions, and employment from data centers, and a somewhat modern-looking red, white, and blue design with moving graphics on the landing page.
But finding out who was behind these videos and websites took a lot of digging. None of the state campaign websites have contact information and they were all registered by a proxy firm that gets web addresses for entities that want to remain anonymous. Most of the advertising itself was opaque; it’s not easy to research TV commercial spends and Google doesn’t disclose how much a company or person pays to promote individual ads. But there were signs of significant spending, as Meta’s Facebook and Instagram advertising disclosures revealed to me there was five-figure spending on static images, resulting in millions of potential impressions.
Eventually I was able to figure out what was going on. Each of the state campaigns also described themselves online as nonprofits but in fact, there is one nonprofit. It initially formed for the first state campaign, Virginia Connects. Its public 2024 tax disclosures show the campaign was formed by Levi and others working with the Data Center Coalition. On the DCC’s website, the trade group does have a landing page for what it calls “America Connects” and directs people to each state campaign but, as of today, the organization describes them as “regional coalitions” they “partner” with on “helping educate and engage citizens, policymakers, and other stakeholders on the data center industry, its benefits, and key issues including energy, water, economic development, and community engagement.”
In our interview, Levi explained these state campaigns aren’t just partners – they’re creations of a single nonprofit he said was “stood up” by the trade group named America Connects, and it began in 2024 through the Virginia Connects campaign. America Connects is now “a vehicle by which the broader community can engage and participate” in what Levi described as “broader industry messaging” that isn’t “just project by project.” It’s a direct response, Levi said, to the lack of any industrywide PR offensive challenging the mountain of public opposition to data centers shown in poll after poll. (With the exception of that one Meta ad campaign.)
“What we have heard very clearly is that a lot of the partners we work with, but also a lot of the voices from the public at large, is that the industry broadly needs to do a better job communicating. A better job talking about what we do, how we do it, and about the positive benefits of what localities can expect from data center development,” Levi said.
Levi told me the core of the group is at least three people: himself; Allison Gilmore, the chief operating officer of the DCC; and Kevin Hughes, the group’s treasurer and the chief external affairs officer at the data center developer STACK Infrastructure. He said I should expect “an expansion on the board” but declined to say who or what companies. Part of the team also includes LINK Public Affairs, a communications firm based in Virginia that helped on the initial campaign in the state.
I asked how an industry-backed campaign like this would help with the backlash. “Silence breeds mistrust, fundamentally. It is critically important as we see continuing conversations around the data center industry – what it does, what it doesn’t do, how it does – is part of informing those conversations,” Levi replied. “It is important the industry not be silent and be an active contributor in terms of the public dialogue around data centers. This is that.”
The DCC wouldn’t tell me how much is being spent on the America Connects campaign and it’s impossible to know from what’s publicly available.
Here’s what Levi would say about the money: that America Connects is funded by the data center “ecosystem generally,” including developers, companies within the supply chain, and “workforce voices.” But Levi wouldn’t even confirm if they were spending more than they had in just the Virginia campaign, which sort of logically has to be the case if they’ve expanded this effort.
“White it’s maybe not a satisfying answer, we will spend what we have to when it comes to ensuring we reach people where they are. But I’m not able to provide any kind of concrete number for you.”
And more of the week’s top news around project fights.
1. Richland Township, Louisiana - The Meta Hyperion project is suddenly now a central focus of activists and media coverage, just as it is seeking environmental permits for a key gas pipeline.
2. Memphis, Tennessee – Hyperion won’t be the first data centers that House Democrats go after if they retake the lower chamber in Congress though – that looks like it’ll be xAI’s Colossus projects. Congrats, Elon!
3. Clark and Nye Counties, Nevada – The federal government’s decision to use an environmental review for a solar farm on a data center instead, which I scooped earlier this week, quickly became a national story. Now the fight against the move is coming into focus.
4. Suffolk County, New York – Last but not least, we have to talk about the battery fire mess on Long Island because it’s a disaster in the making.
5. Montgomery County, Maryland – Bonus for you: my home county just instituted an 18-month moratorium on new data centers. I don’t really have much to add except, if the backlash has come to my neighborhood it’ll probably hit yours sooner rather than later.
This week’s conversation is with Peter Gardett, CEO of the AI-powered energy market research firm Noreva. Before helming the price and deal research consultancy, Gardett built a strong repertoire as an energy expert spearheading analysis at S&P Global, IHS Markit, and Argus Media. I reached out to Gardett because I wanted a candid conversation about the fuel choices data center companies are making under the Trump administration and, to my delight, Gardett was open to sitting in my hot seat.
Let’s get into it then. The following conversation was lightly edited for clarity.
How is the Trump 2.0 era affecting the choices data center developers are making when it comes to powering with gas versus alternative sources like renewable energy or nuclear power?
Well I think the question you’re asking is about natural gas, and what I tell people is every private equity firm has a behind-the-meter 1 gigawatt natural gas project they’d like to move forward. They’re familiar with the economics. They like the regulatory fortune for that fuel right now. They look at the futures curve and think the prices will be stable for this fuel in the future, I would argue discounting some of the likely volatility drivers that exist.
There’s clearly a rush to island yourself with your natural gas supply and let the rest of the world do what it might, if you’re a large hyperscaler.
If you look at the Meta facility in Louisiana – Hyperion – that’s a good example, or the X facility Colossus. The first mega data centers become the blueprints everyone would like to follow.
You brought up the regulatory appetite for gas infrastructure. How much of this rush to build gas from the industry side is due to federal policy changes?
Quite a bit. There have been major changes to implementation of the Clean Water Act that provably have been part of what’s enabled large construction of data centers and the accompanying power. It’s the same kind of shifts in oversight, when it comes to the Clean Water Act. We saw a proposal from the EPA to allow states to implement some parts of the Clean Air Act, which would certainly make it easier for them to build large gas generation that accompanies a large load.
It’s part of an entire emerging trend I theorize as “the great data center migration.” You have everyone moving down to the AI band, to West Texas to Georgia – that strip of states is where large data centers are moving and where the power will follow.
With respect to the renewable side of things, the nuclear side, alternative fuel choices than gas – are they benefiting from this buildout?
Yeah, I mean, we’re in a strange moment for renewables.
There’s been a rush to get things online before the July 4 tax cliff. If you look at additions to the grid, solar and batteries have benefited from this condensing of the pipeline and moving forward of the pipeline to avoid the cliff. We’ve seen a lot of buildouts and a lot of those electrons have gone to data centers. I’m doing a PPA project for a client right now that shows PPA prices having tripled in some regions, and that’s for renewables – solar and wind. You see plenty of demand. If you can get your hands on an electron you’re going to pay for it and go ahead. You don’t mind what kind of electron it is.
That being said, there’s a requirement for a capacity factor to create reliability. Where you’re looking to do behind-the-meter stuff and you feel you’ll be unable to interconnect, or you want to build your own power supply… that does have a unique match to natural gas. All you’re going to need is pipe and available fueling capacity. If you can find the fuel and if you can place yourself over a gas system that’s underutilized, a lot of your other concerns go away. You have access to a power source with a very high capacity factor, is reliable, and matches to your load. The equivalent of solar would require a vast amount of land, changing the economics of a project.
Before the start of this federal regime in the U.S., the trendline was investment going towards green capital – zero-emission generation. Obviously things have changed. From your vantage point in the market, when it comes to where investors are putting their money, has it gone from green power to data centers specifically? Is this boom a redirection, taking their money and putting it into something else?
This is not a trade-off moment. It’s an expansion moment.
We’ve seen a Venn diagram between digital infrastructure and power infrastructure. They move directly over each other, overlapping in capital markets. This is understandable; it’s the one thing you can’t do without if you have a data center. If you want chips, you also need power. And I think people underestimate how much one gigawatt of power is.
There’s a rush to build anything. It’s about more than anything else. I do think the second half of 2026 will be an interesting test of a thesis that a lot of renewables people have been talking about, which is that the low cost of energy – the LCOE factors – is still favorable and even without tax credit support there will be a lot of further additions. We’ve seen models, and we’ve done models, that have renewables as kind of an air pocket because it’s so cheap and the fuel cost. But on the other hand you can make the argument there’ll be a bigger problem.
When it comes to the investor space, how seriously do folks take opposition to data centers as a medium and long term risk – not just the next few weeks but the coming elections?
Very seriously. What you see in PJM with demand destruction is being taken very seriously by a number of the large institutional asset managers, some of the large institutional asset managers. These are people who are my biggest clients. I’m under some confidentiality when it comes to talking about them but nonetheless I can tell you that there are several large projects in PJM that are announced and appear on paper to be fully financed that are actually in cold storage until there is a better understanding of what is going to happen with large load, in PJM and Pennsylvania in particular.
There are large energy projects that are waiting around to see if the demand is going to materialize?
Exactly.
It doesn’t sound like an easy place to be if you’re developing these assets, no?
No.
If you’ve done the work and seen the models, it's very difficult to get this capital running in one direction and have an ISO operator say it's too expensive or puts too much on ratepayers. What you’ve seen folks try to do is create a secondary market, a parallel market, in which price discovery for that kind of power – large load – where it won’t filter through to ratepayers. But that’s much more difficult to pull off. The complexity of operating a grid in that way.
This is why more people are turning to behind the meter and to gas.