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We didn’t know it was coming. We didn’t know where it came from. We still can’t nail its climate change connection.

What happened?
No, seriously — what happened?
Last week, the American megalopolis, that string of jewels on the old Atlantic coast, found itself shrouded by wildfire smoke. New York City’s air turned ashen and dun, then glowed a supernatural amber. For the first time in who-knows, sightseers standing at the U.S. Capitol Building could not see the Washington Monument, a mile and change down the Mall.
You could list the sports games canceled or flights delayed, but what was oddest about the event was the sheer ubiquity of it. This was one of the few news stories I can remember where you could look up from whatever article you were reading and see the story itself, softly lapping at your window.
And then it was gone. By Friday, the haze had blown out to sea.
It was, in retrospect, a strange time — deeply strange, humblingly strange, strange before almost any other quality. More than 128 million Americans were under an air-quality alert on Wednesday night — roughly the population of Germany and Spain combined — but scarcely 36 hours earlier, nobody had known to prepare for anything worse than a moderate haze. The country’s biggest wildfire-pollution event on record arrived essentially out of nowhere.
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One of the main modes of journalism today — but also, frankly, one of the main frames of our whole cultural apparatus, from TikToks that lightly gloss Wikipedia articles to rampant right-wing conspiracism — is that of the explanation. Everyone explains what’s happening to each other, as it happens, at all times, and therefore makes the world seem rational, empirical, and less frightening. Yet with the wildfire smoke, what is so striking is how little we understood. Nearly every important step in the story was misapprehended as it happened.
We didn’t know that the smoke was coming, for instance. On Tuesday morning, meteorologists predicted that the same moderate haze that has hung around all season would again hit the East Coast. The New York Department of Environmental Conservation put out an alert saying that the air quality index, or AQI, might rise to 150 across the state.
They did not forecast — nobody, as far as I can tell, did — that the worst air pollution in decades would soon wallop the state. By Tuesday night, New York City’s AQI had already reached 174, according to Environmental Protection Agency data. As I walked home in D.C., I could see tendrils of visible smoke hugging the upper stories of apartment buildings.
This prediction failure gave the ensuing response a halting, confused quality. How could such a massive event come out of nowhere? Not until Thursday afternoon — when the smoke had nearly passed — did the federal government advise its workers that they could telework or take vacation time to avoid the bad air. On Friday, New York closed in-person schools, just in time for blue sky to return.
I find it hard to blame them. This was an unprecedented event in part because the fires were so far from where they affected. Everyone had seen the videos of smoke besieging Portland and San Francisco in 2020, but back then, the fires had been near those cities — a couple hundred miles away at most. Where was the smoke coming from now? The Adirondacks were fine. Vermont was’t burning.
Here, we misunderstood again. Many outlets — including this one, at first — initially reported that the smoke came from Nova Scotia, where large and destructive fires had raged the week before. But those fires had been doused over the weekend by some of the same weather pattern that was now ferrying smoke to us. In fact, the smoke had come from the boreal forests of northern Quebec, more than 500 miles from New York City.
Why were these fires raging? Not even Canadians could give a good answer. With fires in Alberta and Nova Scotia gobbling attention and resources, the Quebec fires had seemingly been an afterthought until their smoke blew into Toronto and Ottawa, which happened only a few hours before it arrived in New York. Suddenly, a secondary event had become the main event.
On Wednesday, I talked to a Canadian climatologist who seemed hazy about why Quebec was burning in the first place. “I think this situation is kind of similar to Nova Scotia,” he told me, blaming that province’s warm, dry spring for the blazes. But this explanation — which appeared in many outlets — was only somewhat true: While Quebec had suffered a warm May, it was not in drought.
We did not understand why these fires are burning — and honestly, we still don’t. President Joe Biden said that the smoke provided “another stark reminder of the impacts of climate change.” I am not so sure. There’s no doubt, to be clear, that climate change will make wildfires worse across North America: The Intergovernmental Panel on Climate Change says that hot, dry “fire weather” will increase throughout the 21st century. But, again, Quebec is not in drought. As for today, no climate-change signal has appeared in eastern Canadian wildfire data. Their connection to climate change is far less clear cut than it is in, say, California’s blazes.
Yet neither would I condescend to someone who does blame climate change here. When something like this happens, how can you not cite the planet’s biggest ongoing physical transformation? If climate change makes flukey weather more likely, shouldn’t we at least consider it being responsible for some of the flukiest weather in decades? The thing about unprecedented events is that you lack precedent for them.
Not that we completely lack an example for this. In 1780, the sun was blotted out across New England. Nocturnal animals came out; people fretted in the streets and abandoned their work; the Connecticut state legislature considered adjourning for doomsday. Not until a decade ago did we finally learn that the “dark day” was caused by Canadian wildfire smoke drifting south.
Which suggests that this might be a once-in-250-year event. But maybe it’s not any more. Maybe with climate change, it’s a once-a-century event. Or a once-in-a-decade event. For now, the sample size is two.
So I wonder: If it wasn’t climate change, would it matter? The pandemic has already taught us that indoor air quality matters, that unseen particles floating in the air can do serious harm. No matter what happens with the climate, Canada is too large and unpopulated to fight every wildfire; neither can it manage the same kind of labor-intensive forest management that California might attempt. East Coasters should come away from our own dark days with new compassion for people out West — and those across the world — who must deal with wildfire smoke on a seasonal basis, not to mention the fires themselves. Regardless of climate change’s role in this fire, it makes wildfires more likely: We should continue to try to decarbonize as fast as we can.
But as for local policy, perhaps our aims should be humbler. We now know (again) that a great cloud of wildfire smoke can blow up on the East Coast at any moment and poison our air. We don’t need to know everything to protect ourselves and our neighbors from that. Air filters cost hundreds of dollars, but not thousands; in new multi-family buildings, they are built into the ventilation system itself. Perhaps the right lesson from this outbreak should be to change our expectations, and think of indoor air filtering like brushing your teeth — a habit essential to our hygiene, to be used by all, and to be provisioned for those who cannot afford one at the public expense.
Maybe that’s prudent climate adaptation. Or maybe — in the wake of COVID, Canadian smoke, and who-knows-what-comes-next — it’s just new common sense.
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On Texas data centers, Microsoft’s carbon removal, and cross-border aluminum
Current conditions: Dangerous degrees of wildfire smoke swept into the Pacific Northwest, leaving air quality in fire-struck Spokane, Washington, at very unhealthy levels through midweek • Yesterday’s thunderstorms across the Northeast grounded flights and delayed thousands of passengers as key airports in New York City, New Jersey, and New England halted incoming arrivals for hours • Temperatures in Abu Dhabi are soaring to nearly 110 degrees Fahrenheit all week.

Europe’s rivers are running dry amid the prolonged drought and third major heat wave this summer. On Monday, the Rhine River’s water levels dropped to their lowest level in nearly 150 years, beaching cargo barges and jeopardizing output from the various thermal power plants that line the waterway stretching through France, Germany, and Switzerland. The water levels at Kaub, a key crossing for vessels heading to southern Germany and Switzerland, fell to 24 centimeters, the lowest level since records started in 1880, according to a Bloomberg analysis of German federal data compiled by the university ETH Zurich. In Eastern Europe, the Danube’s flow is so depleted that just one reactor at Hungary’s only nuclear station, the four-unit Paks plant, is operating — and only at 50% as cooling water dwindles, NucNet reported.
In Washington State, meanwhile, nearly 65,000 people have now been evacuated from the wildfires that incinerated almost 700 homes in the Spokane area with a “wall of flames.” As of Monday evening, the fire was still 0% contained, according to Fox 13 Seattle, a local broadcaster.
You might not think it, given the partisan politics of our age, but the governors of New York and Texas actually have a lot in common. New York Governor Kathy Hochul is a Democrat, and Texas’ Greg Abbott is a Republican. But they’re both pro-nuclear. They’re both up for reelection this year. And they’re both banning data centers, at least temporarily. Last month, New York became the first state to halt permitting on new, large data centers for a year. Now Texas has put approvals for new data centers on hold until the state’s power regulators and grid managers can audit existing facilities that are seeking to connect to the state’s grid. Until then, E&E News reported, “no more additional data centers can be approved or move forward until that process is over.” In a letter to both the Public Utility Commission of Texas and the Electric Reliability Council of Texas, Abbott wrote: “Any project that fails to comply with the requirements set forth by the PUC and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first.” On the local level, moratoriums on data centers blossomed in recent months, with more than 530 municipalities having slapped new restrictions on server farms, per a recent Heatmap analysis my colleague Robinson Meyer wrote.
Hochul, as our colleague Matthew Zeitlin wrote later last month, is “walking a fine line” with her moratorium, issued via executive order, especially as her administration seeks to appease renewables boosters who say she isn’t doing enough to speed up deployments of that kind of infrastructure. But blocking disfavored types of infrastructure is nothing new for the Texas GOP. Lieutenant Governor Dan Patrick is among the big names now trying to thwart a $33 billion transmission buildout in the state.
Back in April, Rob broke news that Microsoft was pausing its carbon removal purchases. The break marked a major setback for a nascent industry that had come to rely on the tech giant as its biggest and deepest-pocketed source of demand. While the company never confirmed the pause, it appears to be ending. Last night, my colleague Emily Pontecorvo passed along a big exclusive for this newsletter: Microsoft is set to announce a big carbon removal purchase. CREW Carbon, the Brooklyn-based startup that permanently traps carbon dioxide using a limestone and wastewater mix, inked an offtake agreement with Microsoft for 23,602 “durable, verified” credits. CREW “uses strategically-sourced alkaline minerals, such as calcium carbonate, to optimize key conditions, like pH and alkalinity, in each wastewater treatment plant’s specific process to minimize the carbon footprint of plant operations,” the company said in a press release shared in advance with Emily.
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As my colleague Katie Brigham reported last week, Commonwealth Fusion Systems made waves in the clean energy financing world for yet again raising an eye-popping $1 billion to commercialize fusion energy, notably bringing on institutional investors for the first time. Now another fission startup is bringing in a similar chunk of coin. California-based Valar Atomics just pulled in $1 billion to help bring its next-generation high-temperature gas-cooled microreactors to market. The venture capital giant Sequoia led the round, and added the firm’s Shaun Maguire to its board.
Even with progress on nuclear, the future for gas continues to look rosy. On Monday, Utility Dive reported that American Electric Power now has 13 gigawatts of gas turbine capacity in the pipeline.
Zerluma, a Mexican aluminum recycler, has broken ground on a new $50 million facility in Mission, Texas, the San Antonio Business Journal reported. The deal in the city near Texas’ southern border, marks one of the largest private investments in the city’s history, according to the Rio Grande Valley Business Journal.
The agreement comes as the Trump administration seeks to support the opening of the first new American aluminum smelter in half a century, a project that — as you may recall — has attracted scrutiny from state Republicans in Oklahoma. The effort is facing yet more criticism. The Muscogee Nation’s National Council voted unanimously to approve a resolution opposing aluminum smelters on tribal land following the Trump-backed proposal for a $4 billion plant by Emirates Global Aluminum. Last month, city leaders in Port of Inola approved a 60-day moratorium on smelter-related construction, according to the Tulsa broadcaster News On 6.
The United Kingdom has a coke problem: The snortable white stuff is too good and too cheap. So, what is a criminal enterprise that needs something tradeable of high value to do? Well, increasingly, they’re going for gold. Illegal gold mining has replaced cocaine as organized crime’s most profitable business, according to Mining.com. That has grave implications for human rights — and for communities in places such as the Amazon.
Even though he is partially responsible for them.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
Welcome to August — which, as the political commentator Josh Barro once observed, is the year’s “stupidest news month.” Because Congress goes on recess around this time of year, and so many other Americans go on vacation, “the quantity of serious news structurally declines,” and we journalists have to turn to sillier stories in order to fill the space.
I couldn’t help but think of that post today. As my colleague Matthew Zeitlin covered last week, oil companies recently had a blowout quarter. Last week, Chevron reported its best quarterly earnings result ever, while Exxon announced its largest profit in four years. None of this was a surprise: The Iran war and the Strait of Hormuz’s closure sent oil prices soaring around the world in the spring, making the supermajors’ domestic refinery business especially profitable. Despite its big result, Exxon actually underperformed Wall Street’s expectations — that’s how expected all of this was.
Still, though — the oil companies benefited from a supply shock that was hurting everyone else in the economy. Although this kind of volatility is part and parcel of the commodities business — it is part of what makes commodities so enticing to investors — it is, at the very least, not a good look. And in times like these, progressive policymakers will sometimes call for a windfall profits tax, a one-time levy on large and unexpected profits arising from a situation outside a company’s control. (Centrists and conservatives tend to prefer making different reforms to the tax system that tax “supernormal” profits.)
The United States last imposed a windfall profits tax on oil companies in the 1970s, but other countries still use them today: The U.K. implemented one after Russia’s invasion of Ukraine drove up gas prices in 2022, as did a handful of European countries. More recently, Senator Sheldon Whitehouse of Rhode Island and Representative Ro Khanna of California proposed a windfall tax after gasoline prices shot up in March.
I wouldn’t have counted President Trump among Whitehouse’s and Khanna’s number. Yet speaking to reporters from the Oval Office today, Trump said the oil companies were “making too much money” from the Strait of Hormuz closure.
“Chevron, too much money. ExxonMobil, too much money,” the president said. “When you look at one company where they made 12 times what they made the year before, they ought to give some of that back to the public … And they better cut the retail price, the consumer price.”
He noted that many reporters looked “surprised” he was saying it, but reiterated he “wasn’t happy.”
Now, the president hasn’t quite called for a windfall profits tax — he seems to have something more voluntary in mind. Yet given Trump’s fealty to the industry in virtually every other context, his comments are striking and make his political judgement around the war all the more perplexing. The president chose to go to war with Iran — and the almost certain outcome of that conflict, in any world, was going to be higher oil prices. If anything, the war has moved crude less than analysts would have thought. What was Trump expecting here?
I don’t expect these remarks to usher in some new era of Trumpian policy or politics — this is probably just another silly August story. But they reflect how much the politics of energy have changed since President Trump took office in January 2025. Americans know it, Democrats know it, and President Trump knows it too.
Data centers are a big test for the nascent industry. But they also can’t fill the orderbooks.
For the last few years, there’s been just one story dominating the economy, Silicon Valley, and much of the climate tech world too: artificial intelligence. It has consumed investor’s time and money, leaving relatively little for the rest of the startup ecosystem. But for companies that can hitch themselves to the AI boom and tie their value proposition to the data center buildout, this narrow funding focus can be a tailwind.
The most obvious beneficiaries so far have largely fallen into two camps: startups using AI to build cheaper, better products or those developing technologies to cleanly power data centers themselves. But what about the companies actually manufacturing the physical materials behind these facilities? The data center buildout is ultimately an investment in the physical economy, which largely means an investment in concrete — the most widely used man-made material on Earth.
Cement, the key ingredient that binds concrete together, accounts for 8% of global CO2 emissions, and is a major driver of hyperscaler’s scope 3 emissions. Microsoft and Google’s recent sustainability reports, for example, reveal that their largest emissions category isn’t electricity but “capital goods,” which includes the embodied carbon in their physical assets and infrastructure such as the concrete, steel, server racks, and silicon used to build data centers.
Cement is a big part of that picture because producing it typically requires burning limestone in kilns at extremely high temperatures, a process that both uses large amounts of fossil fuels and releases CO2 through the underlying chemical reaction itself. So if hyperscalers are serious about decarbonization, one might expect them to be pretty interested in startups such as Brimstone, Sublime Systems, and Fortera, each of which is pursuing a different approach to reducing cement’s carbon footprint.
And they are interested. But that alone won’t fill these company’s orderbooks or offset the headwinds generated by the Trump administration rescinding previously obligated grants. That challenge has only been compounded by climate tech’s broader fall from favor as investors chase flashier, more explicitly AI-centric bets.
Still, Cory Waltrip, Sublime’s VP of business development, told me that data centers make a fantastic beachhead market for the company’s low-carbon cement, which it produces through an electrochemical process that eliminates the need for high-temperature kilns. Hyperscalers, he said, have both the market power and financial runway to think long-term about “the way that they’re signing agreements” and “how you can structure those agreements.” Of course, “the balance sheet and the amount of capital that they allocate towards sustainability commitments” doesn’t hurt either.
Last May, Microsoft signed an offtake agreement with Sublime to purchase up to 622,500 metric tons of cement from the company’s future demonstration plant in Holyoke, Massachusetts, as well as a yet-to-be-sited full-scale facility. The deal is unique because it doesn’t require Microsoft to actually use Sublime’s cement in its data centers. Since cement is expensive and impractical to ship long distances, what Microsoft really purchased is the cement’s so-called “environmental attributes,” allowing Sublime to sell the physical product to local customers while Microsoft gets to claim the associated emissions reductions.
It was one of the first deals in the cement industry to decouple the physical product from its environmental benefits. But that good news was quickly overshadowed. Just eight days later, Energy Secretary Chris Wright announced the cancellation of 24 awards from the DOE’s Office of Clean Energy Demonstrations, including a $87 million grant for Sublime and a $189 million grant for Brimstone. That sent Sublime into a tailspin: In December, it paused plans for its demo plant, and in March it laid off roughly two-thirds of its workforce. The company has since filed a suit in the court of federal claims, alleging that the DOE breached its contract with Sublime, but a resolution could take years.
All the cement-hungry data centers in the world would struggle to make up for the loss of that federal funding. Hyperscalers want to buy low-carbon cement from companies that already have a credible pathway to commercial production, not foot the bill for a first-of-a-kind plant.
So Sublime is now pursuing “alternative scale up plans” that don’t involve the Holyoke facility, with Microsoft remaining “a committed customer,” Waltrip said. The most promising option involves co-locating with existing but underutilized standard cement plants in North America or Europe. Doing so could reduce capital costs by roughly 20% to 40%, Waltrip told me. “We can use all of the existing crushing, grinding, finishing, and storage equipment that an existing cement plant already has.”
Building in Europe — something Sublime has yet to commit to but is certainly considering — could also open the door to other non-dilutive public financing, such as the bloc’s roughly €40 billion EU Innovation Fund, which regularly backs industrial decarbonization projects such as low-carbon cement.
In the meantime, the company also says it’s made significant process improvements that could drastically change the scale at which it builds plants. While former CEO Leah Ellis described Sublime’s future commercial facility as a “megaton-scale plant,” Sublime now thinks it could economically produce the material in 50,000 to 250,000 metric tons-per-year facilities. These smaller plants would be far easier to finance without relying on large government grants, Waltrip told me.
Sublime is exploring multiple other undisclosed data center engagements as well, as Waltrip revealed that “we’ve completed materials testing with at least one hyperscaler. We’ve completed a concrete demonstration pour with another hyperscaler,” and “we’ve negotiated or are in the process of negotiating commercial agreements with other hyperscalers beyond Microsoft.”
The company also conducted a small test pour of its low-carbon concrete last year with STACK Infrastructure, a data center developer that leases out its facilities. But while the material has exceeded performance standards, STACK is unlikely to become a customer anytime soon. “If we had a commercial plant ready to go, I think we would be having no issues with finding customers for that product,” Waltrip told me. The challenge is that developers outside the major hyperscalers typically lack the financial flexibility to sign long-term offtake agreements for a product that may not reach meaningful scale until the mid-2030s.
So for now, Google, Microsoft, Meta, and Amazon remain the most sought-after buyers.
Brimstone, another low-carbon cement company, also landed a major hyperscaler deal last year. The company, which still uses kilns but replaces limestone with carbon-free calcium silicate rocks in its production process, agreed to supply Amazon with an undisclosed amount of cement and supplementary cementitious materials, which can partially replace cement in concrete. CEO Cody Finke told me he couldn’t share any additional details, including the volume of materials reserved or when he expects deliveries to begin, though he readily acknowledges the impact of the data center boom.
“There’s no question that the data center buildout has increased the demand for these materials,” Finke told me. Early last year, the company announced that it’s also figured out how to adapt its process to produce alumina — the refined material that smelters turn into aluminum. Data centers also use this metal throughout their operations in structural panels, server racks, and cooling systems. Eventually, the company says it will be able to make additional critical minerals and materials including steel, magnesium, and titanium.
For now though, Brimstone is working to complete construction of its demo plant in Reno, Nevada, which the company recently said it expects to be operational in 2028. Finke was somewhat more cautious, however, telling me only that it should come online by “the end of the decade.” The company’s first full-scale plant, the location of which it’s yet to announce, is slated to begin operations around 2034, producing 350,000 metric tons of alumina and an undisclosed amount of cement and other materials.
But like Sublime, Brimstone also lost a major source of federal support when the Trump administration rescinded its $189 million DOE grant, which was intended to finance construction of the demo plant. Finke, however, insisted this hasn’t altered the company’s timeline because Brimstone, having netted over $80 million to date, “had effectively raised the money that we needed, regardless of the grant.”
Finke isn’t relying on the goodwill of hyperscalers either, even though many do appear willing to pay a green premium in order to align with their ambitious, if flailing, decarbonization agendas. “To be frank, I don’t think that it’s that important to the transition whether or not those climate policies exist, because the companies that really matter are going to be cheaper anyway,” he told me.
Brimstone, he argues, is one of those companies. By co-producing multiple products at once, each can effectively offset the cost of the others, and Finke expects even the cement produced at the Reno demo plant to sell at standard market rates. Ultimately, while he sees growth in the data center industry as a tailwind, he doesn’t think Brimstone depends on that market, noting these facilities still only account for a small sliver of global cement demand. The company’s primary customers, he said, will ultimately be traditional buyers: concrete producers purchasing cement and aluminum smelters buying alumina.
Yet data centers willing to negotiate multi-year contracts still represent uniquely valuable first customers in an industry where such agreements are exceedingly rare. Instead, producers typically sell cement into a merchant spot market, where buyers purchase from whatever supplier meets their myriad requirements at the time. But that leaves low-carbon materials startups in a bind, Fortera’s CEO Ryan Gilliam told me. “When you’re trying to bring a new technology to market like us, you typically use offtake agreements to get project financing to justify building up big projects,” he explained. Potential investors simply want to see demonstrated future demand.
Fortera, which has raised about $150 million and has an operational pilot plant in California, captures the CO2 emitted from conventional cement production and converts it into a mineral form that then becomes part of the cement itself. Last year, it secured a strategic investment from Microsoft’s Climate Innovation Fund to help finance its first commercial-scale facility, expected to produce 400,000 tons of cement per year. In return, the tech giant secured the right to procure Fortera’s low-carbon cement and its associated environmental attribute certificates — more of a reservation than the binding offtake contract it signed with Sublime.
Just one plant of this size “would meet all the hyperscalers’ needs easily,” Gilliam told me, underlining Finke’s point that data centers will by no means represent a cement company’s largest buyer long-term. “Most hyperscalers, you’re talking maybe upwards of 100,000 tons a year of requirements around cement, and that might even be at the upper end,” Gilliam explained. By comparison, standard cement plants typically produce about a million tons of product annually.
So while Gilliam and others are happy to ride the AI boom, they also recognize that data centers are likely more valuable as an early market signal than a long-term source of demand. Even now, it remains unclear whether the boom is even a net positive for the sector as a whole.
“The number of AI startups and the amount of money that’s been diverted into that space definitely changed the pool of investors that you can go to right now,” Gilliam told me. And that’s the core paradox. The data center boom has become one of the clean cement industry’s most promising early markets and one of its fiercest competitors for capital. Welcome to the AI economy.