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How Republicans and Democrats came together to seed new industries in specific places

The Biden administration announced on Friday that it would spend up to $7 billion to create seven new “hydrogen hubs” across the country. These hubs will house large-scale industrial facilities specializing in producing, moving, and using hydrogen, a potent gas that could play a range of roles in a climate-friendly economy. Hydrogen, which does not emit carbon pollution when burned, could decarbonize long-distance trucking, energy storage, chemical making, and heavy industry.
These hubs will, as my colleague Emily Pontecorvo writes, become important public-private laboratories for the use of clean hydrogen. They will complement tens of billions of dollars in tax credits that could soon support a clean hydrogen industry.
Although these hubs are a key part of the president’s climate strategy, they are not created by his signature climate law, the Inflation Reduction Act. They were funded, instead, by the bipartisan infrastructure law, which passed in December 2021.
That same legislation also spent $3.5 billion to create new direct air capture hubs, big regional facilities that will deploy technology capable of sucking carbon dioxide from the ambient air. In August, the Energy Department awarded the first of those hubs to Texas and Louisiana.
It matters that these two “hub”-based programs command some measure of bipartisan support. It signals, first, that these programs are likely to endure even if the GOP takes the White House next year. It shows, too, that Republicans in Congress — and especially in the Senate, where 19 Republicans voted for the infrastructure law — can back climate policy under some conditions. (Even if those conditions might involve having to negotiate with a Democratic president.)
It certainly helps, too, that hydrogen and direct air capture are two potentially climate-friendly industries where the fossil fuel industry could play the largest role. The chief executive of Occidental Petroleum, a fossil-fuel company that is building one of the first air-capture hubs, has even argued that carbon removal technology could allow the oil and gas industry to operate for decades to come.
But the bipartisan support for these programs reveal something else, too — a deeper change in how America’s leaders think about governing and growing the economy. Most coverage of the hubs has elided the fact that they’re called “hubs,” almost treating the word “hub” as a synonym for “big new economic thing.” But the hubs are called “hubs” for a reason; don’t snub the hubness of the hubs. The hubs are meant to do more than create new experimental industrial facilities at taxpayer expense. They are meant to seed specific industries in specific places, creating new centers of gravity that will allow new regional economies to form.
The idea behind the hubs goes back more than a decade. In 2010, a team of researchers at the Massachusetts Institute of Technology looked around the U.S. economy and realized something strange: Although many of the world’s most innovative and profitable companies did their R&D, design, and distribution in America, very few of them made their products here. Think of Apple, for instance, whose iPhones then bore the inscription: “Designed in California. Assembled in China.”
Why was that?, the team asked. That arrangement distorted the economy, depriving working-class people of the benefits of new industries. It also seemed unsustainable. “Without production capabilities in the U.S., can we generate new growth and jobs?” asked Suzanne Berger, a political science professor who led the project. “Can we even sustain innovation without manufacturing capabilities in the U.S.?”
The U.S. could not go on like this forever, they concluded, because innovation in design was inseparable from innovation in production. Many industries — including biotech, material science, and clean energy — required engineers to constantly flit back and forth from the factory floor to the lab, bringing problems encountered by assembly technicians back to the design engineers.
But this tight circuit of design, production, and design again didn’t just happen within influential companies, like Ford, AT&T, and 3M. One takeaway from their report, Making in America, is that innovation emerges from skilled communities of practice located in specific places. When a big company opens a factory or R&D lab somewhere, an ecosystem grows up around it. Small- and medium-sized manufacturers with their own expertise cluster around that big firm, because they can make a living by selling their own goods and services to that firm (or its competitors).
Speaking to a Senate committee in 2013, Berger described what happened when her team visited the laboratory of Tonio Buonassisi, a mechanical engineer then building a new type of solar cell. Buonassisi’s lab in Cambridge, Massachusetts, was full of cutting-edge equipment that had been made by an instrument company located only a couple hours away.
“Much of [that] machinery had been made in close collaboration between the lab and the instrument companies as they handed ideas and components and prototypes back and forth,” Berger said. “Used for the first time in the lab, these tools were now being marketed to commercial solar companies.”
At the time, the domestic solar industry was collapsing, and it worried Buonassisi. If American solar-cell makers went out of business, then it would put his specialty toolmaker out of business, too — and slow down or possibly end his own research agenda. “Even in a fragmented global economy with instant connection over the Internet to anywhere in the world,” Berger said, the close geographic ties “that connect research in its earliest stages to production in its final phases remain vital.”
When you start looking, you see endless evidence of these ecologies of production, these skilled communities of practice, everywhere. Silicon Valley once earned its name because it housed a booming semiconductor manufacturing industry nurtured by the Defense Department. A chip conductor at Intel could access a specialty lens maker, or metallurgist, or chemicals maker only a short drive away; even outside of work, these people met at bars and socialized in the same places. Soon, that semiconductor ecosystem gave rise to other adjacent businesses: a software industry that could write code for those semiconductors, and a personal computing industry that could make semiconductors useful to mass-market consumers; those industries gave rise to today’s tech industry.
Nor was that region’s power solely rooted in its technicians. The banks near Silicon Valley grew so familiar with the hardware and software industries that they could finance companies there more easily and cheaply than other financial institutions. One of those institutions even named itself after Silicon Valley.
Today, America has relatively few of these innovative clusters left. The point of the hub-based strategy is to build them back. The idea of the hubs isn’t only that America will get seven new large-scale facilities that produce or process hydrogen, or four new facilities that suck carbon out of the air. The object is that these big facilities will anchor new skilled communities of practice, the same way that, say, a deep-sea volcanic vent gives rise to an entire colorful food chain. President Biden might be announcing a new Philadelphia-based hydrogen hub today, but we won’t know if that hub will be a success until it’s scuttling with metallurgists and chemists and financiers and specialty electricians in 10 years.
The hydrogen and direct air capture facilities, in other words, are meant to grow into true hubs — hubs of engineering, hubs of finance, hubs of innovation. The government, having recognized that new industries and industrial centers will not form naturally, is now trying to seed them intentionally.
That is far from the laissez faire approach to innovation once embraced by policymakers. And it matters that Democrats and Republicans alike have embraced it in the infrastructure law: It reveals the growing belief that free markets alone will not keep America at the top of the global economy. Today’s announcement might be the first time you hear about a new federally supported “hub.” It probably won’t be the last.
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There has been no new nuclear construction in the U.S. since Vogtle, but the workers are still plenty busy.
The Trump administration wants to have 10 new large nuclear reactors under construction by 2030 — an ambitious goal under any circumstances. It looks downright zany, though, when you consider that the workforce that should be driving steel into the ground, pouring concrete, and laying down wires for nuclear plants is instead building and linking up data centers.
This isn’t how it was supposed to be. Thousands of people, from construction laborers to pipefitters to electricians, worked on the two new reactors at the Plant Vogtle in Georgia, which were intended to be the start of a sequence of projects, erecting new Westinghouse AP1000 reactors across Georgia and South Carolina. Instead, years of delays and cost overruns resulted in two long-delayed reactors 35 miles southeast of Augusta, Georgia — and nothing else.
“We had challenges as we were building a new supply chain for a new technology and then workforce,” John Williams, an executive at Southern Nuclear Operating Company, which owns over 45% of Plant Vogtle, said in a webinar hosted by the environmental group Resources for the Future in October.
“It had been 30 years since we had built a new nuclear plant from scratch in the United States. Our workforce didn’t have that muscle memory that they have in other parts of the world, where they have been building on a more regular frequency.”
That workforce “hasn’t been building nuclear plants” since heavy construction stopped at Vogtle in 2023, he noted — but they have been busy “building data centers and car manufacturing in Georgia.”
Williams said that it would take another “six to 10” AP1000 projects for costs to come down far enough to make nuclear construction routine. “If we were currently building the next AP1000s, we would be farther down that road,” he said. “But we’ve stopped again.”
J.R. Richardson, business manager and financial secretary of the International Brotherhood of Electric Workers Local 1579, based in Augusta, Georgia, told me his union “had 2,000 electricians on that job,” referring to Vogtle. “So now we have a skill set with electricians that did that project. If you wait 20 or 30 years, that skill set is not going to be there anymore.”
Richardson pointed to the potential revitalization of the failed V.C. Summer nuclear project in South Carolina, saying that his union had already been reached out to about it starting up again. Until then, he said, he had 350 electricians working on a Meta data center project between Augusta and Atlanta.
“They’re all basically the same,” he told me of the data center projects. “They’re like cookie cutter homes, but it’s on a bigger scale.”
To be clear, though the segue from nuclear construction to data center construction may hold back the nuclear industry, it has been great for workers, especially unionized electrical and construction workers.
“If an IBEW electrician says they're going hungry, something’s wrong with them,” Richardson said.
Meta’s Northwest Louisiana data center project will require 700 or 800 electricians sitewide, Richardson told me. He estimated that of the IBEW’s 875,000 members, about a tenth were working on data centers, and about 30% of his local were on a single data center job.
When I asked him whether that workforce could be reassembled for future nuclear plants, he said that the “majority” of the workforce likes working on nuclear projects, even if they’re currently doing data center work. “A lot of IBEW electricians look at the longevity of the job,” Richardson told me — and nuclear plants famously take a long, long time to build.
America isn’t building any new nuclear power plants right now (though it will soon if Rick Perry gets his way), but the question of how to balance a workforce between energy construction and data center projects is a pressing one across the country.
It’s not just nuclear developers that have to think about data centers when it comes to recruiting workers — it’s renewables developers, as well.
“We don’t see people leaving the workforce,” said Adam Sokolski, director of regulatory and economic affairs at EDF Renewables North America. “We do see some competition.”
He pointed specifically to Ohio, where he said, “You have a strong concentration of solar happening at the same time as a strong concentration of data center work and manufacturing expansion. There’s something in the water there.”
Sokolski told me that for EDF’s renewable projects, in order to secure workers, he and the company have to “communicate real early where we know we’re going to do a project and start talking to labor in those areas. We’re trying to give them a market signal as a way to say, We’re going to be here in two years.”
Solar and data center projects have lots of overlapping personnel needs, Sokolski said. There are operating engineers “working excavators and bulldozers and graders” or pounding posts into place. And then, of course, there are electricians, who Sokolski said were “a big, big piece of the puzzle — everything from picking up the solar panel off from the pallet to installing it on the racking system, wiring it together to the substations, the inverters to the communication systems, ultimately up to the high voltage step-up transformers and onto the grid.”
On the other hand, explained Kevin Pranis, marketing manager of the Great Lakes regional organizing committee of the Laborers’ International Union of North America, a data center is like a “fancy, very nice warehouse.” This means that when a data center project starts up, “you basically have pretty much all building trades” working on it. “You’ve got site and civil work, and you’re doing a big concrete foundation, and then you’re erecting iron and putting a building around it.”
Data centers also have more mechanical systems than the average building, “so you have more electricians and more plumbers and pipefitters” on site, as well.
Individual projects may face competition for workers, but Pranis framed the larger issue differently: Renewable energy projects are often built to support data centers. “If we get a data center, that means we probably also get a wind or solar project, and batteries,” he said.
While the data center boom is putting upward pressure on labor demand, Pranis told me that in some parts of the country, like the Upper Midwest, it’s helping to compensate for a slump in commercial real estate, which is one of the bread and butter industries for his construction union.
Data centers, Pranis said, aren’t the best projects for his members to work on. They really like doing manufacturing work. But, he added, it’s “a nice large load and it’s a nice big building, and there’s some number of good jobs.”
A conversation with Dustin Mulvaney of San Jose State University
This week’s conversation is a follow up with Dustin Mulvaney, a professor of environmental studies at San Jose State University. As you may recall we spoke with Mulvaney in the immediate aftermath of the Moss Landing battery fire disaster, which occurred near his university’s campus. Mulvaney told us the blaze created a true-blue PR crisis for the energy storage industry in California and predicted it would cause a wave of local moratoria on development. Eight months after our conversation, it’s clear as day how right he was. So I wanted to check back in with him to see how the state’s development landscape looks now and what the future may hold with the Moss Landing dust settled.
Help my readers get a state of play – where are we now in terms of the post-Moss Landing resistance landscape?
A couple things are going on. Monterey Bay is surrounded by Monterey County and Santa Cruz County and both are considering ordinances around battery storage. That’s different than a ban – important. You can have an ordinance that helps facilitate storage. Some people here are very focused on climate change issues and the grid, because here in Santa Cruz County we’re at a terminal point where there really is no renewable energy, so we have to have battery storage. And like, in Santa Cruz County the ordinance would be for unincorporated areas – I’m not sure how materially that would impact things. There’s one storage project in Watsonville near Moss Landing, and the ordinance wouldn’t even impact that. Even in Monterey County, the idea is to issue a moratorium and again, that’s in unincorporated areas, too.
It’s important to say how important battery storage is going to be for the coastal areas. That’s where you see the opposition, but all of our renewables are trapped in southern California and we have a bottleneck that moves power up and down the state. If California doesn’t get offshore wind or wind from Wyoming into the northern part of the state, we’re relying on batteries to get that part of the grid decarbonized.
In the areas of California where batteries are being opposed, who is supporting them and fighting against the protests? I mean, aside from the developers and an occasional climate activist.
The state has been strongly supporting the industry. Lawmakers in the state have been really behind energy storage and keeping things headed in that direction of more deployment. Other than that, I think you’re right to point out there’s not local advocates saying, “We need more battery storage.” It tends to come from Sacramento. I’m not sure you’d see local folks in energy siting usually, but I think it’s also because we are still actually deploying battery storage in some areas of the state. If we were having even more trouble, maybe we’d have more advocacy for development in response.
Has the Moss Landing incident impacted renewable energy development in California? I’ve seen some references to fears about that incident crop up in fights over solar in Imperial County, for example, which I know has been coveted for development.
Everywhere there’s batteries, people are pointing at Moss Landing and asking how people will deal with fires. I don’t know how powerful the arguments are in California, but I see it in almost every single renewable project that has a battery.
Okay, then what do you think the next phase of this is? Are we just going to be trapped in a battery fire fear cycle, or do you think this backlash will evolve?
We’re starting to see it play out here with the state opt-in process where developers can seek state approval to build without local approval. As this situation after Moss Landing has played out, more battery developers have wound up in the opt-in process. So what we’ll see is more battery developers try to get permission from the state as opposed to local officials.
There are some trade-offs with that. But there are benefits in having more resources to help make the decisions. The state will have more expertise in emergency response, for example, whereas every local jurisdiction has to educate themselves. But no matter what I think they’ll be pursuing the opt-in process – there’s nothing local governments can really do to stop them with that.
Part of what we’re seeing though is, you have to have a community benefit agreement in place for the project to advance under the California Environmental Quality Act. The state has been pretty strict about that, and that’s the one thing local folks could still do – influence whether a developer can get a community benefits agreement with representatives on the ground. That’s the one strategy local folks who want to push back on a battery could use, block those agreements. Other than that, I think some counties here in California may not have much resistance. They need the revenue and see these as economic opportunities.
I can’t help but hear optimism in your tone of voice here. It seems like in spite of the disaster, development is still moving forward. Do you think California is doing a better or worse job than other states at deploying battery storage and handling the trade offs?
Oh, better. I think the opt-in process looks like a nice balance between taking local authority away over things and the better decision-making that can be brought in. The state creating that program is one way to help encourage renewables and avoid a backlash, honestly, while staying on track with its decarbonization goals.
The week’s most important fights around renewable energy.
1. Nantucket, Massachusetts – A federal court for the first time has granted the Trump administration legal permission to rescind permits given to renewable energy projects.
2. Harvey County, Kansas – The sleeper election result of 2025 happened in the town of Halstead, Kansas, where voters backed a moratorium on battery storage.
3. Cheboygan County, Michigan – A group of landowners is waging a new legal challenge against Michigan’s permitting primacy law, which gives renewables developers a shot at circumventing local restrictions.
4. Klamath County, Oregon – It’s not all bad news today, as this rural Oregon county blessed a very large solar project with permits.
5. Muscatine County, Iowa – To quote DJ Khaled, another one: This county is also advancing a solar farm, eliding a handful of upset neighbors.