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Plus cheese and eggs, if you want to go all the way.

It was burrito night — I had some tortillas, salsa, guacamole and red onion in my refrigerator, but all our meat was still frozen, and I didn’t have any beans handy. So I did what any climate reporter with an interest in food systems would do and grabbed a pack of meatless “carne asada” I’d picked up out of curiosity and threw it into the mix. The end result was more “huh” than “wow,” but it held its own — with a little help from some hot sauce.
Growing, raising, processing and transporting food is responsible for roughly a quarter of worldwide greenhouse gas emissions, nearly 60% of which comes from meat production, according to one estimation. If you're concerned about your personal carbon impact, eating less meat is probably on your to-do list. But what if you still like a carne asada burrito? Thankfully, there are plenty of companies working on satisfying your cravings, no animals involved.
There are lots of other food system concerns that won’t make it into this guide — things like agricultural livelihoods, water use, and animal well-being. But if you’re curious about how fake meats work, what they taste like, and their emissions impact, here’s what you’ll want to know.
Ben Kelley, owner and proprietor of Kelley Farms Kitchen, a vegan restaurant in Harpers Ferry, WV. Ben and his wife Sondra started Kelley Farms after going vegan themselves more than a decade ago. The cafe offers a mix of housemade and commercially available meat alternatives.
Ismael Montanez, the program manager at University of California Berkeley’s Alt Meat Lab, where he’s focused on food and sustainability broadly. He is co-founder and former CTO of plant-based lamb company Black Sheep Foods and eats both meat and plant-based replacements.
Andrea Cecchin, senior agriculture and carbon researcher at HowGood, a sustainability ratings company. Cecchin told me he and his family limit the amount of meat they eat but are focused on a wider plant based diet.
It’s a multi-trillion dollar question, frankly. While the worldwide food system is far more complex than individual consumer choices, shifts in demand for food products, especially among higher-income individuals, have created changes, such tripling the price of quinoa during a boom in its popularity in mid-2010s. The U.S. and China’s growing middle classes also drove a spike in pork demand, only to have that growth slow and reverse in the past few years over health concerns.
The plant-based meat alternatives currently available at your grocery store may be highly processed, but they’re different from the cultivated or “lab-grown” meat coming from a new batch of food companies that seek to “grow” meat from scratch on the cellular level. In theory, this would create direct replacements for things like steaks or fish without actually requiring us to raise actual animals. Almost all of these products are still in the research and development stage, however, and none are currently commercially available in the U.S.
Let’s not mince words: There is no such thing as carbon-neutral beef. How to reduce cattle’s climate impact is an area of active research, encompassing supplements and dietary changes, breeding programs to create animals that process food more efficiently, and even methane-sucking gas masks. There are also ranchers committed to using specific grazing techniques that encourage extra retention of soil carbon, thereby offsetting emissions from cows, but “the science is not there yet” on the scale of sequestration needed for fully carbon-neutral meat, Cecchin says. “Climate-friendly” or “low-carbon” meat labels have been criticized for a lack of data transparency and only represent a 10% reduction in beef emissions overall.
The process of making plant-based mock meats is basically the reverse of their animal version, Montanez explained. While meat is made by processing animals into specific cuts or parts, plant-based replacements use protein-packed flours and other ingredients to build the “meat” back up.
Almost all fake red meat products will have a smaller greenhouse gas impact than their animal versions, Cecchin explained. Compared to a beef burger, the alternatives “really bring down the carbon footprint — the amount of water we need to use, and the amount of land that we use” per unit of food. But for other products, the savings are less clear. Chicken, for instance, has a much lower footprint, meaning replacements have to compete against a “very efficient industry and a very efficient meat.”
Processing details are rarely public, making it difficult to declare other meat replacements automatic emissions winners. “It’s really company by company, and could even be year by year as processing efficiencies change,” Cecchin said, adding that he hopes more companies will show clear evidence of their total emissions, including being specific about what they are comparing against.
Fake animal products are also not the same nutritionally as actual animal products, in ways that can be positive or negative depending on your specific dietary needs. An allergy to soy or wheat gluten would immediately knock out a good portion of these options, and my carne asada came with a warning to anyone “sensitive” to fungi.
There are generally more carbs, less fat, and more fiber in substitutes compared to meat, but protein levels can vary widely, and sodium levels can be high (e.g. Impossible burgers have just as much fat and more salt than a 80% lean beef burger of the same size, though zero cholesterol). As with any processed or prepared food, a look at the nutritional label is well worth it.
The experts all enjoyed the big-name beef replacements — Cecchin even said he has chosen Impossible and Beyond patties over regular burgers while eating out. If you have a little more time, though, Kelley said to skip the fast food fake burgers and make them yourself. Making good tasting meat replacements isn’t all that different from cooking meat itself: spices, technique and how it integrates into a meal makes all the difference. This is the case whether he’s using Impossible beef on the restaurant griddle or hand-making a black bean and chickpea patty. “Just like a raw piece of chicken,” he said, “it's about how you cook it.”
Everyone I spoke to said most breaded chicken replacements match their animal versions pretty well — Montanez even called them “most consistently tasty” than their actual meat equivalents, which for him was enough to justify the slight additional cost. He said he thinks Impossible’s chicken nuggets are the “most convincing” — although he also cautioned that he doesn’t eat a lot of breaded meat products in the first place.
Morningstar Farms’ Chik Patty has been a go-to at-home lunch in my house for nearly three decades, primarily because of that consistency and ease of preparation. (The “buffalo” flavor is by far the best, in my opinion.) Kelley uses Gardein’s Chick’n on one of their most popular sandwiches at the restaurant — they’re a big fan of the company and product.
Don’t expect a lot of options for raw chicken alternatives, however. Montanez suspects the economics of competing with relatively cheap meat isn’t attractive to companies, especially when prepared breaded versions, both animal and plant-based, are already popular.
“Emulating the flavor of American chicken is relatively easy and shouldn't be seen as a significant achievement,” Montanez said. “What’s truly interesting is creating a versatile analog that can withstand the same cooking conditions as real chicken.”
Kelley’s favorite meat replacement is Beyond’s bratwurst sausage, made with pea protein and avocado oil. He uses it in a variety of meals at his cafe, as well as to grill up at home, sometimes adding it to pasta.
Steak and other meats that include marbled fats have been a particularly tricky nut to crack for fake meat producers because the traditional extrusion process makes it difficult to capture fat alongside protein. Montanez told me Juicy Marbles has developed a process capable of doing both, which it’s used to create filet and loin products.
Montanez’s favorite fake bacon is only available in a vegan deli in Berkeley, California, but generally both he and Kelley haven’t found full bacon strips that really match the experience of eating bacon. “There's no way to hold it after you cook it without it drying out,” Kelley said. Instead, he likes using soy [bacon] crumbles in various dishes, including in his potato salad.
The pepperoni and other fermented charcuterie from Prime Roots is “quite impressive, even from a meat eater’s perspective,” Montanez told me. The company starts its process with koji, a strain of fungus that has been part of Japanese cuisine for hundreds of years, including in the product of soy sauces and sake.
The deli slices Kelley uses in sandwiches like reubens or Italian hoagies are made with seitan or a mix of seitan and soy, from a variety of companies. But the Tofurky brand (not just turkey) is one of their favorites. “We are always testing new recipes of our own and using reliable and ethical companies that we grew up loving,” he said.
Kelley has yet to be convinced by most seafood replacements, he told me. “All the seafood is kind of just the same as the chicken replacements,” he said. Instead, he uses unripe jackfruit – a common meat replacement with a stringy texture – hearts of palm, and spices to replicate crab cakes. Having an exact match isn’t always a priority for Kelley, who’d rather highlight an ingredient that serves as a replacement rather than calling it by its faux name. His lobster roll replacement is made with hearts of palm, but it’s not “vegan lobster” on his menu, it’s a “hearts of palm” roll.
Texture is a “very difficult thing in seafood,” Montanez said. “I haven't seen anything myself where it is 100% convincing,” but he points out companies like Impact Food that are making plant-based sushi without extrusion or fermentation, currently available in some New York and California restaurants.
Montanez also called out vegan cheese as a category that struggles to match its original, citing texture, not flavor, as the sticking point, especially when it needs to work in a multitude of different recipes. “You might see a vegan cheese that’s okay applied in pieces,” he said, “but it's only as good if you put it in pizza oven temperatures.” An exception to the rule for him is Climax Foods’ blue cheese, which almost pulled off a Judgment of Paris-like upset in a food competition this year before being removed from the running.
Montanez identified Quorn as a brand that’s not trying to replicate meat exactly, but tastes good on its own. The British company has a wide range of no-meat products that feel like they could have a home in a Tesco, from a vegan Yorkshire ham to mini sausage rolls to “picnic eggs.”
Approaches to fake meat taste fall on a spectrum. On one end are companies that try to replicate as closely as possible the taste, texture, and smell of some specific meat product — say, a chicken nugget. (Your personal mileage may vary when it comes to replicas of more complicated meat cuts such as steaks or pork chops.) On the other end are brands that offer a functional, hopefully flavorful replacement for meat in a meal but otherwise aren’t trying to fool anyone.
The former approach involves more materials science and chemistry, Montanez told me. For example, Impossible makes a soy version of a key molecule in meat known as heme and combines it with a carefully calibrated proportion of sugars, fats, and water to induce the Maillard reaction, the process that makes meat brown and form a crust. It’s possible to create a similar meaty flavor profile without heme (Impossible has a patent on their version), but they have their own complications.
“It’s those sugars reacting with the proteins and creating these molecules that ultimately result in a meaty aroma or flavor,” Montanez said.
Kelley Farm’s menu is a good example of the wider ingredient possibilities of meat replacements beyond this approach. In addition to Impossible patties, Beyond brats, and Gardein’s Chick’n, the restaurant also serves deli meat replacements made with seitan (basically textured wheat gluten); folded eggs made from mung beans; BBQ pulled pork made from jackfruit, which mimics that stringy texture naturally (I’ve had both Kelley Farms’ barbeque sandwich and commercial jackfruit BBQ versions and would happily eat either again); and a burger patty that’s their own mix of chickpeas and black beans.
It’s also worth noting that there is a more literal approach to eating a plant-based diet that’s already the standard in many other countries — that is, rather than replacing meat products with fake meat products, just eat more plants. If you feel like you’re missing out on protein, beans, lentils, tofu, and certain grains like quinoa, farro or teff, have high amounts.
Highly engineered meat substitutes are often more expensive than the animal products they are replacing, so if you’re struggling with hunger, have specific dietary requirements, anxiety around food, or an eating disorder, concerns about emissions shouldn’t even enter the picture.
For that matter, just reorienting your approach to eating meat saves a lot of carbon on its own. Kelley told me he reaches for meat replacements when he’s craving something specific, while Cecchin prefers meat alternatives when he’s eating out.
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A group of energy researchers have a three-part prescription for Washington, D.C.’s exploding energy costs.
Washington, D.C. has earned an unwelcome distinction: the largest one-year electricity price increase of any state (or equivalent geographic distinction) in the U.S. Prices there are up 87% over the past five years and 26% in the past year alone, according to new data from MIT and Heatmap News’ Electricity Price Hub. The average D.C. household is now paying $55 more for power each month than it did five years ago.
In the face of this crisis, local officials have done little but blame regional markets, emphasizing the parts of recent rate increases they don’t fully control — generation charges — rather than any proactive measures they could take to offer relief to D.C. households. Meanwhile Exelon, the parent company for Pepco, D.C.’s local utility, has used the crisis to lobby state policymakers across the region for something worse — a return to utility-owned generation, which could leave consumers holding the bag for projects that run over budget or that are built for demand that never materializes.
As residents of Washington, D.C. and energy researchers who helped put together the Electricity Price Hub, we are well aware that the District cannot remake the regional electricity market on its own. But it has meaningful tools to protect ratepayers now.
To be sure, the problems D.C. faces are not entirely of its own making. Rising demand and constrained supply across the Mid-Atlantic have created a wholesale market pressure cooker.
Capacity market prices in the Pepco region, which are set through a regional auction scheme designed to ensure the grid can reliably deliver power when demand peaks, increased more than fivefold in 2025. Those costs are passing through to retail bills. As capacity has come under increasing strain, generation charges in Pepco’s standard supply service have gone up 119% — 33% in the past year alone, with yet another rate increase set to kick in on June 1.
That regional dynamic is real. But it does not absolve local officials.
Roughly 30% of Pepco’s average residential bill is made up of charges that fall squarely under D.C. jurisdiction. Distribution charges, the largest of those local components, have risen 57% over five years, and account for 20% of the total rate increase. The D.C. Public Service Commission regulates utilities in the District and must approve Pepco’s rates before they take effect. The commission, in turn, answers to the D.C. Council, the District’s legislature, which confirms its commissioners and oversees its work. These bodies should be examining every dollar of Pepco’s proposed increases. Instead, a D.C. court recently struck down the commission’s most recent rate-hike approval, finding that it had failed to sufficiently scrutinize Pepco’s request.
When a regulator is doing such a poor job that judges have to step in, that is a five-alarm signal. Yet there is a workable action plan for the Council and the PSC to rein in costs and ease the burden on D.C. households.
First, scrutinize distribution charges aggressively — that is squarely within their jurisdiction. As Pennsylvania Governor Josh Shapiro argued in his public letter to utility leaders last month, the PSC should require Pepco to justify every additional dollar of revenue requested in plain language. That means using transparent, replicable data and analysis to show why it’s needed, the alternatives considered, and how the proposed spending will concretely benefit consumers. To support this, the D.C. Council should ensure that the PSC, the Office of the People’s Council, and relevant state agencies are adequately resourced and positioned to engage with and probe Pepco’s arguments in rate proceedings.
Second, force transparency into how Pepco procures power. The public has remarkably little visibility into what makes up generation charges for the utility. For example, how much of the total cost is attributable to capacity prices, energy procurement, administrative costs, and compliance with the District’s Renewable Energy Portfolio standard? And what changes could D.C. consider to the competitive procurement process or RPS eligibility requirements to mitigate costs? Officials can’t manage what they can’t measure.
Third, attack demand by making it easier for customers to generate their own supply. High and unpredictable interconnection fees, process delays, and other administrative hurdles add unnecessary costs and contribute to the above-average cost of solar in D.C.. The D.C. Council and PSC can incentivize distribution-level solar battery deployment by cutting permitting and interconnection costs and improve cost transparency and streamline interconnection reviews to speed up the process of installing solar and storage.
None of these moves alone will reverse five years of rate increases. But together they would put real downward pressure on bills and signal that the city is serious.
What officials should reject — across the region — is Exelon’s push for utility-owned generation. In practice, it could create a generation subsidiary tomorrow. The reason it wants its rate-regulated distribution utility to do so instead is that this would let it earn a guaranteed return on costs it currently just passes through, while shifting the risk of cost overruns, schedule slips, and overbuilt capacity from shareholders to ratepayers. It would also hand the utility an information advantage over independent power producers, suppressing the competition the market relies on to keep prices honest. More profit, less risk, less competition. A great deal — for the utility.
The D.C. Council recently passed emergency legislation pausing utility disconnections for residents with unpaid balances under $1,000. That is a humane stopgap as we head into summer, but it is not a strategy. Neither is anything that has been proposed during the current mayoral race, in which leading candidates have attacked each other’s records instead of offering a plan to lower bills.
D.C. residents do not need more blame-shifting. The choice in front of the council and the PSC is concrete: Scrutinize what is in their jurisdiction, force the transparency they have the authority to require, accelerate the cheapest sources of new supply, and refuse to subsidize a Pepco business model that turns ratepayers into the underwriters of utility risk. That is the test of whether they meet this moment seriously.
On Thea Energy’s $100 million Series B, plus more of the week’s big money moves.
Nuclear is once again a dominant theme this week, with fusion startup Thea Energy landing a $100 million Series B that will help it expand its magnet manufacturing capabilities. While $100 million is nothing to scoff at, it somehow sounds modest alongside some of this year’s other deals, which include a $450 million Series A for Inertia Enterprises and $240 million for Shine Technologies. This week also brought the news that small modular reactor startup Newcleo plans to go public via SPAC later this year, bringing to mind the exuberance of the 2021 SPAC boom, in a deal expected to net a cool $429 million.
Elsewhere, gridtech company Utilidata raised fresh capital after (surprise!) pivoting to the data center market, while a standalone battery storage developer and operator is betting there’s still plenty of money to be made in the increasingly crowded ERCOT market.
Thea Energy officially joined the growing ranks of fusion companies to surpass $100 million in total funding this week, raising a $100 million Series B round led by the U.S. Innovative Technology Fund to scale its magnet manufacturing operations as it targets a demonstration reactor by 2030. Thea is a part of the Department of Energy’s Milestone-Based Fusion Development Program, which seeks to accelerate efforts for commercial fusion power. In January, the DOE certified Thea’s preconceptual pilot plant design, making it the first of the program’s eight awardees — who will split $46 million in federal funding — to see its reactor architecture validated.
Unlike many top-funded fusion startups, which are building donut-shaped tokamak reactors, Thea Energy is betting on a stellarator design. Traditional stellarators resemble a helical tokamak, which require manufacturing and installing dozens of huge, twisted magnets, but Thea’s approach deviates from the norm. Instead, it relies on hundreds of small, planar magnets arranged in the more familiar donut-shaped configuration, which the company’s artificial intelligence software controls individually. That enables Thea to create the same complex magnetic field within a far simpler and more manufacturable shell.
Thea plans to use the new capital to build a second facility in New Jersey to complement its existing lab and to double its headcount as it seeks a site for its demo reactor later this year. The startup is aiming to bring its subsequent commercial pilot online by 2034, on par with the timeline laid out by fusion industry leader Commonwealth Fusion Systems. According to Gaetano Crupi, USIT founder and billionaire investor Thomas Tull “believes the stellarator is the right architecture for commercial fusion, and Thea Energy is the company that makes it commercially viable.” As Crupi put it in a press release, that’s because “Thea Energy’s breakthroughs shift complexity from precision mechanical fabrication to software-defined controls.”
Newcleo is the latest small modular reactor startup seeking a quick pathway to the public markets via a SPAC merger, announcing plans to list on the Nasdaq in the second half of the year after merging with a blank-check firm. The deal values the European fuel and reactor developer at $2.4 million, and is expected to deliver about $429 million in fresh capital. It comes just months after Newcleo raised $88 million in a growth financing round as the company expands into the U.S. market while continuing to fund projects across Europe.
Newcleo stands out in the crowded SMR field through its fuel and cooling strategy. It plans to run its 200-megawatt reactors on recycled fuel made from nuclear waste products like recovered plutonium and depleted uranium, and cool its reactors with liquid lead rather than water. Because liquid lead has such a high boiling point, lead-cooled reactors can operate at atmospheric pressure, reducing the need for the complex, high-pressure systems used in conventional nuclear plants and potentially improving safety along the way.
The company has already raised over $760 million to date, and CEO Stefano Buono told the Wall Street Journal that the pending SPAC could carry it through 2028 or 2029. Even that won’t be enough, however, for Newcleo to reach its target of opening a fuel factory by 2031 and bringing a commercial reactor online the following year. Not to mention that SPACs — a once rare go-to-market strategy — have a checkered history in the SMR industry. After NuScale went public via SPAC in 2022, its flagship project collapsed, taking its stock down with it and underscoring the risks that pre-revenue companies face when their early failures unfold in the public markets. On the other hand, shares of Sam Altman-backed startup Oklo’s have surged since it went public via SPAC in 2024, reaching a market cap over $11 billion, though it also has yet to build a reactor.
Newcleo’s capital push may also be tied to its strategic partnership with Oklo, as it has preliminary plans to invest up to $2 billion to develop advanced nuclear fuel facilities in the U.S. in partnership with the SMR pioneer. Earlier this week, the DOE selected Oklo — and by extension, Newcleo — to enter “advanced negotiations” to receive surplus weapons-grade plutonium for use in reactor fuel.
What’s that I hear? Another climate tech company has pivoted to the data center market? While Utilidata — an artificial intelligence-powered gridtech company — initially set out to give utilities granular insight into household-level electricity usage and grid data, it’s now raised a $40 million extension round to accelerate its shift into the data center market. As I wrote following last year’s initial $60 million tranche of Series C funding, Utilidata initially set out to get its hardware module inside residential smart meters — which it managed to do at pilot scale — to enable faster fault detection and eventually even automate load management at the household level.
Now, Utilidata is taking this same principle and applying it to the booming data center market, where so many climate tech companies are finding their first customers. The company developed its AI platform in collaboration with Nvidia, installing its modules on server racks to help data centers optimize power allocation across its facility. The company says it measures power consumption a million times per second, such that if usage on one rack is low, it can reroute electricity to parts of the data center that need it. Much like electric grids, data centers also overbuild their capacity to ensure they can handle sudden spikes in demand or hardware failures. Utilidata wants to tap into that headroom by managing power flow in real time.
Utilidata’s first commercial data center deployment is set to go live next month in Montreal in partnership with European AI cloud provider NexGen Cloud, with the startup targeting a 50% increase in the data center’s usable processing power. It also plans to use this latest funding to increase headcount by 25% this year as it builds out operations at its new Ann Arbor headquarters, which opened in February.
In some later-stage funding news, battery energy storage developer, owner, and operator Goshe Energy Storage just secured up to $40 million in strategic financing from S2G investments. As I wrote last week, S2G recently raised a $1 billion fund aimed at helping growth-stage companies commercialize, though this latest commitment actually comes from a different arm of the firm — its Special Opportunities team. This division focuses on non-dilutive financing, in this case providing Goshe with a HoldCo loan backed by the company’s portfolio of energy storage projects. Rather than lending to a specific project, a HoldCo loan gives Goshe flexible capital that can be used to fund its broader growth.
Founded in 2022, Goshe specializes in acquiring late-stage battery storage projects and getting them over the finish line by securing capital and managing the construction process into commercial operations. Thus far, all of its announced projects are in Texas’ ERCOT electricity market. Alongside this financing announcement, Goshe said that its first project — a 100-megawatt battery storage plant in Bexar County, Texas — is now fully operational after securing $288 million in project financing. The company also expects to bring its second project, a 180-megawatt storage facility, online in the following few months, with two additional ERCOT projects slated to begin construction later this year.
This funding is the latest sign that infrastructure investors have grown comfortable backing battery energy storage projects, with a record 24.3 gigawatts of new battery storage capacity projected to come online in the U.S. this year alone. The wholesale ERCOT market, however, is no longer the guaranteed moneymaker that it was just a few years ago. Between January 2024 and January 2026, ERCOT more than tripled its battery storage capacity, driving battery revenues down as the market has become increasingly crowded. In this landscape, there may be a growing number of stranded projects for Goshe to acquire, though it’ll also have to be increasingly selective.
The American climate movement is beginning to look a lot like AI doomers versus the techno-optimists. It’s a dynamic that is winning local bans – and very little else for now.
On one side, you’ve got the left-leaning insurgent grassroots movement against data centers. In many cases this push is in the name of climate action and environmental justice, with activists citing the risks of pollution from gas-fired power and the potential for strain on existing electricity supplies. But in many, many other cases, this movement is decidedly not about climate action; instead it’s a movement addressing everything from energy prices and power over large corporations to AI use generally.
Or, perhaps the anti-data center movement’s big tent is best summarized in this quote from comedian and activist Ilana Glazer: “The thing that is genuinely waiting for us on the other side of AI and data centers is the collective.”
On the other end of the spectrum, you have a raft of data center-curious centrists, liberals, and, for lack of a better term, capitalists. This diametrically oppositional political force wants to ensure data centers continue being built as states and the federal government figure out how to make policy surrounding them. Yes, they want regulations, but they’ll have to qualify even supporting the idea of a single full state – any state – pausing data centers.
“I tend to find myself in the middle of all of this AI and data center policy, because I don’t think a heavy-handed approach in either direction is smart or productive,” said Tre Easton, vice president of public affairs for the Searchlight Institute, a policy think tank geared toward pushing Democrats into positions more broadly popular in the general electorate. “If you’re doing moratoria in one state and Meta says, okay, fine, they’ll go to a different state where they’ll run roughshod.” He added: “This buildout is happening. Let’s just make the rules. Put out rules of what this should look like.”
I spent weeks talking to activists fighting data centers to better understand their end goals. Right now what folks want to talk about most is moratoria, until industry-specific regulation is in place governing all things energy, water, noise, and labor.
“Our motto is ban, legislate, regulate,” said Ben Dziobek, founder of Climate Revolution Action Network, which is fighting data center expansion in New Jersey. Dziobek’s organization is one of roughly five dozen in the Garden State that have called on newly-elected Democratic Gov. Mikie Sherill to institute a moratorium on data centers, including state representatives from The Nature Conservancy and ACLU.
When I asked Dziobek what he’d like to see after a moratorium, the answer was clear: he wants to see Big Tech pay for the energy transition. “It would be beneficial if we could get companies who are using more load than entire states to build out the clean energy future. Someone’s gotta pay for this. The largest companies in the world have to come in.”
Undoubtedly this movement is increasingly influential and rooted in a now bipartisan concern about data centers founded in valid concerns about data center impacts and the rise of AI. But at least right now, In New Jersey, and so many other Democrat-controlled states, this movement has won little ground outside the local level and no statewide Democratic leader (e.g. governor) has made a data center moratorium their raison d'être. Neither have I seen the push for a moratorium pick up steam in any state known as a deep blue bastion for climate policy. Its greatest achievements by the numbers are the cancellation rate of projects that have faced local pushback (37%, according to Heatmap Pro), the city-wide moratoria in large left-leaning bastions like Denver, and the sheer existence of a federal data center moratorium bill led by progressive celebrities like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.
In fact, what I am seeing is Democratic statewide leaders rejecting efforts to curtail their development or regulate energy and water usage. In California last year, Gov. Gavin Newsom vetoed a bill requiring data center developers to report their water use. In New York, Gov. Kathy Hochul has so far shrugged off a push for her to back a three-year moratorium on new data centers. In Massachusetts, Gov. Maura Healey supports continuing to foster the state’s data center buildout and the state is preserving its data center sales tax exemption at a time when GOP leaders in other states want to repeal similar subsidies. Colorado legislators abandoned a push to regulate data centers earlier this month, after Washington state did the same.
Perhaps infamously in Maine, the Democrat-led state legislature nearly enacted a two-year moratorium on data center development only to be vetoed by Gov. Janet Mills. Democrats then failed to override the veto.
Some Democratic leaders are taking up the light-touch approach. On Wednesday, Pennsylvania Gov. Josh Shapiro released long-awaited principles for data center developers seeking fast-track permitting processes with state agencies. Under these policies, companies can get permitted more quickly if they abide by a number of energy, water, and labor standards.
On a granular level, even this policy quietly represented a disappointment for climate activists. One of the principles called for data centers to get at least one third of their power from “clean” sources by 2035 – which sounds nice until you realize Shapiro only two years ago was calling for utilities to get at least half of their electricity from carbon-free sources by then. Food & Water Watch, a national group calling for country-wide data center moratoria, blasted a press release going after Shapiro to the media after the principles were released: “[This] is a naive effort to placate widespread data center opposition. It won’t work.”
For climate activists, the best case scenario right now may be blue states taking up bills to regulate the sector as opposed to a blanket moratorium, where the push for a pause functions as leverage. Often these bills are focused on energy costs for consumers, not environmental protection, like in Oregon where last year legislators enacted a measure requiring data center companies to pay for their share of electricity demand. In Vermont this week, the state legislature passed a similar bipartisan data center bill focused on energy affordability, with some restrictions on fossil fuel generation. (Republican Gov. Phil Scott is expected to sign it.)
Indeed, the climate movement’s smartest play could be to push legislation requiring facilities not only pay for their power but ensure it is zero-carbon emissions. So far, Democrat-led bills that would accomplish this goal gained steam this year in other states but struggled to become law before the end of the legislative session too (Washington, for example).
In Illinois, the bill is known as the POWER Act, but despite lots of Democratic support behind it, it’s languishing in committee limbo ahead of the end of legislative session this week. One can imagine Illinois Gov. J.B. Pritzker getting a bill like the POWER Act into law and then running for president as The Guy Who Made Data Centers Cleaner. Heaven knows that’s why folks like Hannah Flath, climate communications manager for the Illinois Environmental Council, are so bullish on the bill. “I think it’ll eventually become law. Just not this session.”
I asked Flath why her organization was so focused on this bill as opposed to a data center moratorium. “We just don’t think it is politically feasible. Especially given how attractive these things are to our governor and some state lawmakers,” she said. “Currently, I view climate work as harm reduction work. This is perhaps a cynical view to have but that’s unfortunately where we’re at. How can we ensure changes happening in the world bring more benefits than they do harms?”
But Flath said that as a push for moratoria grows, it provides pressure on state policymakers to act: “What we’re offering state legislators now is a middle ground solution.”
I suppose for now, we’ll have to see if this side can come together on any solution – let alone a middle ground.