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If you want to decarbonize concrete, it helps to understand the incredible scale of the problem.

To say that concrete poses a decarbonization challenge would be an understatement. Cement production alone is responsible for somewhere between 5 and 10% of global CO2 emissions [0], roughly two to four times more than aviation, a fact that even the construction industry is finally coming to grips with.
And yet the real problem with decarbonizing concrete isn’t the scale of its emissions, it’s the scale of concrete itself. There is simply a preposterous amount of the stuff. Contemplating concrete is like contemplating the universe — awesome, in the old God-fearing definition of the word.
Before we get into the jaw-dropping amount of concrete we produce every year, it’s worth briefly discussing how the stuff is made, and thus where its emissions come from.
Concrete is formed by mixing together cement (mostly calcium silicates), aggregates (such as sand and gravel), and water into a liquid slurry. The cement reacts with the water, forming a paste that binds the mixture into a single solid mass. Beyond concrete’s high strength and low cost, it’s these liquid beginnings that make concrete so useful. It can easily be formed into any shape and leveled with the help of gravity so you can walk on it or park a car 10 stories up on it. Essentially all modern concrete is also reinforced with steel bars, which provide tensile strength and arrest cracks.
So what about the emissions? Roughly 70-90% of the embodied carbon in concrete comes from manufacturing just the cement [1]. Partly this is because making cement is an energy-intensive process — limestone and clay are put into a kiln and heated around 2500 degrees Fahrenheit. But it’s also because the chemical reaction that turns the limestone into cement (known as calcination) releases CO₂ as a byproduct. Roughly 50-60% of cement’s carbon emissions are due to calcination [2], and thus wouldn’t be addressed by moving to less carbon-intensive electricity sources, like green hydrogen.
Now for the good stuff. Again, the most important thing to understand about concrete is the scale of its production. The world produces somewhere around 4.25 billion metric tons of cement annually (though estimates vary) [3], which works out to about 30 billion tons of concrete produced each year [4].
How much are 30 billion tons?
One way of looking at it is we produce around 4 metric tons, or just under 60 cubic feet (roughly a cube 4 feet on a side), of concrete for each person on the planet each year.
Another way of looking at it is to consider the total amount of mass, full stop, that civilization ingests each year. Estimates here vary quite a bit, but it seems to be in the neighborhood of 100 billion tons [5]. So of the total volume of material that gets extracted and used each year — including all mining, all oil drilling, all agriculture and tree harvesting — around 30% of it by mass goes toward making concrete. The amount of concrete produced each year exceeds the weight of all the biomass we use annually, and all the fossil fuels we use annually.
Total civilization annual material extraction, via Krausmann et al 2018. This is up to 2015, and has now exceeded over 90 Gt/year, with another ~8 Gt/year of recycled material.
Another way of looking at it is that the total mass of all plants on Earth is around 900 billion metric tons. So at current rates of production, it would take about 30 years to produce enough concrete to exceed all the Earth’s plant (dry) biomass.
Because humans have been producing concrete for a while, and because concrete tends to last a long time, we seem to be on the cusp of this happening. Elhacham et al 2020 estimate that total human-created mass (roughly half of which is concrete) reached the total weight of all Earth’s biomass sometime in 2020. Eyeballing their graph, concrete alone will exceed the total weight of all biomass sometime around 2040.
Anthropogenic mass vs biomass during the 20th century, via Elhacham et al 2020
In a pure mass-flow sense, human civilization is basically a machine for producing concrete and gravel (and to a lesser extent bricks and asphalt).
So civilization uses a lot of concrete. Where is it all going?
China, mostly. In recent history, China has been responsible for roughly half the world’s cement production, and by implication, concrete use [6]. The U.S., by comparison, only uses 2%, with Europe using another 5%.
Cement production by region, via Sanjuan et al 2020. Since cement production roughly tracks consumption (see here and here), we can also use this as a rough guide toward where concrete is used. Note that this gives yet another value for total global cement production of 4.65 Gt
Here’s another view from around 2010, showing what this has looked like over time (data after 2010 is a projection).
Cement consumption by region, via Altwair 2010
This gets summarized in the oft-repeated statistic that China used more cement in three years than the U.S. did in the entire 20th century.
But since China has a much larger population than the U.S., we can get a more intuitive understanding of this by looking at cement consumption per capita. Here’s per capita consumption sometime around 2015:
Per capita cement consumption by country, via Globbulk
We see that the official numbers from China make it a huge outlier in cement consumption, using around eight times as much per capita as the U.S. However, in per capita terms, some Middle Eastern countries exceed it. Saudi Arabia is higher, and Qatar, which is somewhere over 2,000 kg/capita, is so high it doesn’t even show up on the graph. It’s the combination of China’s huge population and its huge per-capita consumption that make it such an outlier in concrete production.
The official Chinese numbers are so huge, in fact, that some analysts suspect that they’re inflated, either by manipulating the data or by producing construction projects that don’t have actual demand (or both). The graph above also includes a more “realistic” estimate (which is still 3x as high as U.S. per-capita use).
What does all this concrete construction mean in practical terms? Well, China has somewhere around 50-60% of the floor space per capita as the U.S. does, or roughly as much living space per capita as most European countries [7]. This is the result of a massive trend toward urbanization over the last quarter century. Urbanization rates went from around 25% in 1990 to 60% in 2017, a period in which China’s population also increased by 250 million. In other words, in less than 30 years over 550 million moved into Chinese cities, and they all needed somewhere to live. By building enormous numbers of concrete high rises, in under 20 years China quintupled its urban residential floor space and doubled its residential floor space overall.
Residential floor space in China over time, via Pan 2020
Beyond China, we see high per capita rates of cement use in the rest of Southeast Asia, as well as the Middle East [8].
One reason you see this volume of concrete use in lower-income, urbanizing countries is that concrete construction is comparatively labor-intensive to produce. The materials for concrete are extremely cheap, and much of its cost in high-cost labor countries (such as the U.S.) is from the labor to produce it — building and setting up the formwork, laying out the reinforcing, placing the embeds, etc. If you’re a country with a lot of low-cost labor, this is a pretty good trade-off.
In addition to the current largest users of concrete, one trend to keep an eye on long-term is India’s concrete use. If India ever proceeds on a path of mass urbanization similar to China (as some folks speculate it will), we could see a massive uptick in global concrete output — India’s urbanization rate of 34% is around where China was in the late 1990s. A shift in India toward a per capita cement consumption more consistent with the rest of Southeast Asia (say around 600 kg/capita) would increase worldwide cement consumption by about 13%, and it does seem as if India’s cement use is trending upward.
By contrast, one thing clear from this data is that the U.S. actually uses an unusually low amount of concrete. Per capita, it uses as little as any other Western country, and far, far less than some — like, surprisingly, Belgium.
So we’ve seen where it gets used in the world. Can we go deeper and look at specifically what concrete is being used for?
This will vary significantly depending on the region and the local construction tradition. In the U.S., we have roughly the following breakdown (via the Portland Cement Association):
Overall, roughly half of our concrete gets used in buildings — about 26% goes into residential buildings, 2% in public buildings, and 16% into commercial buildings. The other half gets used for infrastructure — streets and highways, water conveyance and treatment tanks, etc. Because most construction in the U.S. is just one- or two-story buildings (mostly wood for residential buildings and steel for commercial ones), concrete in buildings is probably mostly going into foundations, slabs on grade, and concrete over metal deck, though there’s probably a substantial amount going into concrete masonry units as well.
But the U.S. has a somewhat unusual construction tradition, where the vast majority of our residential construction, both single-family homes and multifamily apartments, is built from light-framed wood. In other places, it's much more common to use concrete. For instance, the U.K. uses closer to 80% of its concrete for buildings, with most of that going toward the superstructure, the concrete frame that holds the building up. China, which has urbanized on the back of huge numbers of concrete residential high rises, probably devotes an even larger share of its concrete to residential construction.
Understanding how much concrete the world uses, and where it’s being used, is important if you want to use less of it.
The scale of the industry is particularly important to keep in mind. For instance, you often see enthusiasm for the idea of replacing concrete buildings with mass timber ones. But assuming you could substitute all the world’s concrete for an equal volume of wood [9], you’d need to more than triple the total annual volume of global wood harvested [10], which puts a somewhat different spin on the issue.
Most other materials would have emissions as bad or worse than concrete if they were used on the same scale.
Consider, for instance, railway ties. In the U.S., these are still largely made out of wood, but in many places they have been replaced with concrete ties. And some places are considering changing from concrete ties to plastic composite rail ties instead. It’s hard to know the exact embodied emissions without a lot of specific details about the materials and supply chains used, but can we ballpark how much a plastic tie uses compared to a concrete one?
Per the Inventory of Carbon and Energy database, concrete varies between 150 and 400 kg of embodied CO2 per cubic meter, depending on the properties of the mix, with an “average” value of about 250. Plastics mostly have embodied emissions of about 3-4 kg of CO2 per kg of plastic, or about 3,500 kg per cubic meter (assuming a density of about 1,000 kg per cubic meter). So per unit volume, plastic has somewhere around 10 times the embodied emissions of concrete.
We can also do a more direct comparison. Consider a beam spanning around 20 feet and supporting a vertical load of 21,000 pounds per linear foot. The lightest U.S. standard steel section that will span this distance is a W16x26, which weighs about 236 kg and will have embodied carbon emissions of around 354 kg.
A concrete beam of the same depth, supporting the same load and spanning the same distance, will be 10.5 inches wide by 16 inches deep, with three #10 steel bars running along the bottom. This beam will have about 190 kg of embodied emissions from the concrete, and about another 230 kg of embodied emissions from the steel rebar. This is about 20% more than the steel beam, but in the same ballpark — and over half the “concrete” emissions are actually due to the embedded reinforcing steel.
This is arguably a nonrepresentative example (most concrete, such as in columns or slabs, will have a much lower ratio of steel), but the basic logic holds: Concrete is unusual in its total volume of use, not how emissions-heavy it is as a material. Most material substitutes that aren’t wood, recycled materials, or industrial byproducts that can be had for “free” won’t necessarily be much better when used at the same scale. In some ways, it’s surprising that the carbon emissions from concrete are as low as they are.
Of course, this calculus is likely to change over time — as electricity sources change over to lower carbon ones, you’re likely to see the embodied emissions of materials drop along with it. And since cement releases CO2 as part of the chemical process of producing it, concrete will look increasingly worse compared to other materials over time.
One potential option is to find ways of changing the cement production process to be less carbon-intensive. The easiest option is to just replace manufactured Portland Cement with some other cementitious material. Industrial byproducts such as blast furnace slag, silica fume, and fly ash, often have cementitious properties and don’t have a “carbon penalty” (since they’d be produced regardless.) Materials like these can potentially eliminate large volumes of cement in a concrete mix, and they’re a key part of current low-carbon concrete strategies — even “normal” concrete mixes tend to utilize these to some degree. But the total volume of these materials is limited by the extent of various industrial processes. And for things like fly ash (which is a byproduct from coal plants) and slag (which is a byproduct from CO2-emitting blast furnaces), we can expect production to decline over time.
Another option is to take advantage of the fact that concrete will naturally absorb CO2 over time, a process known as carbonation. Even normal concrete will absorb roughly 30% of the CO2 emitted during the production process over the course of its life. Companies like Carbicrete, Carboncure, Carbonbuilt, and Solida all offer methods of concrete production that allow the concrete to absorb CO₂ during the production process, substantially reducing embodied emissions. Interestingly, these producers mostly claim that their concrete is actually cheaper than conventional concretes, which would obviously be a massive tailwind for the technology’s adoption.
It’s not obvious what the best path forward is for addressing concrete carbon emissions (like with most things, I suspect it’ll end up being a mix of different solutions), but understanding the parameters of the problem is necessary for solving it.
Note: A version of this article originally appeared in the author’s newsletter, Construction Physics, and has been repurposed for Heatmap.
[0] - This figure varies depending on the source. Chatham House provides a frequently cited estimate of 8%. We can also ballpark it — roughly 0.93 pounds of CO₂ gets emitted for each pound of cement produced, around 4.25 billion tons of cement are produced annually, which gets ~3.95 billion tons of CO₂, and total annual CO₂ emissions are in the neighborhood of 46 billion tons, getting us a bit less than 9%.
[1] - Per Circular Ecology, ~70-90% of emissions are from the cement production process, depending on the type of concrete and what the rest of the supply chain looks like.
[2] - This seems to vary depending on where the cement is being made — in Myanmar, for instance, it’s around 46%.
[3] - Another number where the sources often don’t agree with each other, see here, here, and here for estimates on annual cement production.
[4] - Concrete is roughly 10-15% cement by weight, depending on the strength of the mix, what other cementitious materials are being used, etc. An average value of 12.5% yields 34 billion tons, which we’ll knock down to account for other uses of cement (masonry mortar, grout, gypsum overlay, etc.) This roughly tracks with estimates from PCA (“4 tons of concrete produced each year for every person on Earth”), and from the now-defunct Cement Sustainability Initiative, which estimated 25 billion tons of concrete against 3.125 billion tons of cement in 2015.
[5] - See here, here, and here for an estimate of total civilization mass flow. This doesn’t (I believe) include waste byproducts, which can be substantial — for instance, it doesn’t include the ~46 billion tons of CO₂ emitted each year, or the 16 billion tons of mine tailings, or the 140 billion tons of agriculture byproducts (though this last number is difficult to verify and seems high).
[6] - We see something similar with cement as we do with other bulky, low-value materials, in that it's made in lots of distributed manufacturing facilities relatively close to where it’s used. See here for a map of cement plants in the U.S. around 2001, for instance.
[7] - For China’s total floor space, see here (most sources seem to agree with these numbers). For U.S. floor space, see my Every Building In America article. For per-capita living space in Europe, see here.
[8] - The often high rates of cement use by middle-income countries have led some folks to develop a U-shaped cement consumption theory of industrial development — that countries start out using a small amount of cement, use more as they get richer and build up their physical infrastructure, and then eventually transition to using lower volumes of cement again. The Globbulk paper spends considerable time debunking this.
[9] - It’s not actually obvious to me what the substitution ratio would be. In strength-governed cases, you’d need proportionally more timber than concrete, but in other cases (such as replacing concrete walls with light-framed stud walls), you’d probably use less. Obviously, you can’t substitute all concrete for wood, but you can probably switch out more than you think — there’s no reason you couldn’t use wood foundations instead of concrete ones in many cases, for instance.
[10] - 30 billion tons of concrete is roughly 12.5 billion cubic meters, and total annual wood products produced is currently around 5.5 billion cubic meters.
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Endurance Energy hoped its generator would run for a full year, but the team isn’t afraid of the “error” in “trial and error.”
About 300 miles off the Oregon coast, a mile beneath the ocean’s surface, a startup just drilled the world’s first subsea geothermal well. And for a grand total of exactly 8.7 seconds, its prototype power plant generated about 2 kilowatts of net power. It wasn’t quite the result the Seattle-based Endurance Energy was hoping for — the company’s goal was to run its 100-kilowatt generator for a full year. But it’s not nothing.
“We really proved with this mission that a geothermal well could be drilled and completed on the seafloor, and doing that within 21 months of the company existing I think is really a testament to our pace of progress,” Endurance CEO Andrew Redd told me.
A former SpaceX engineer — as so many climate tech founders seem to be — Redd appears quite comfortable with the rapid trial-and-error cycles that hard tech startups often demand. Or as he stated in the company’s press release, which provides a refreshingly frank account of what this first test did and didn’t accomplish, “We follow the adage ‘make it exist, then make it good.’”
Investors seem to be buying it. In June, the startup raised a $54 million Series A, led by Peter Thiel’s Founders Fund — Endurance’s second funding round in less than two years of existence. Still, the team certainly has their work cut out for them. The ocean is a notoriously difficult operating environment: Saltwater is corrosive and offshore infrastructure is difficult and expensive to build, maintain, and repair.
Indeed, Endurance spent the first 11 days of its three-week stint at sea debugging its drill, which the team had never operated underwater before. But with a vessel chartered and a locked-in deployment date, the company couldn’t afford to wait for everything to work out perfectly. “We were still working on that generator hours before it got on the seafloor,” Redd told me. He’s used to that sort of thing, though, comparing it to making final tweaks to rockets already sitting on the launchpad. “That’s kind of the name of the game,” he said.
The trial took place at Axial Seamount, an active underwater volcano and the only place in the world with a cluster of hydrothermal vents connected to shore by fiber optic cable, which allows the Endurance team to monitor and control its system in real time from Seattle. While this was the company’s fifth deep-sea mission, it was the team’s first attempt to actually drill their own well.
After lowering their drill about a mile below the surface, the team bored two holes and turned the second into a well about 2 inches wide, lining it with pipe and sealing it with cement. But after losing so much time to debugging, the team only managed to drill about 52 feet deep — far short of its original 200-foot target.
Water then flowed up the well at about 260 degrees Celsius (around 500 degrees Fahrenheit), but the narrow borehole proved too restrictive to deliver enough heat for the generator to operate. So the team pivoted, connecting the generator directly to a naturally flowing, hotter hydrothermal vent instead. The generator then ran for a total of 29 seconds, producing about 2 kilowatts of net power for 8.7 seconds. That represents the total electricity the turbine generated, minus the 7 to 8 kilowatts needed to run its supporting components, such as the refrigerant pump and other onboard equipment.
Then a software glitch triggered the onboard battery safety system, which shut down the plant. When the team tried to restart the system, the power cable feeding the refrigerant pump failed, leaving the pump unable to restart. That was the end of the road. The mission wrapped up after three weeks at sea, a far shorter run than the team had hoped.
“The success criteria would be if we had left with the generator still on the seafloor; that would have been an example of sustained net power, and we didn’t get there,” Redd told me. Instead, the team brought the system back to Endurance’s Seattle headquarters, where it’s fixing the software as well as refurbishing and upgrading the hardware — which includes changing how it builds and tests subsea cables — to prepare for another mission sometime this winter. This time, the goal will be to generate sustained power from a much deeper well.
The team will need to demonstrate progress soon to keep its next major milestone on track: a planned 2-megawatt deployment off the coast of Tonga by the end of 2027. The project aims to supply electricity directly to the Tongan grid, which today is heavily dependent on expensive, imported diesel. Redd expects subsea geothermal to be cost-competitive with that fuel in this first pilot.
Getting there, however, is a formidable engineering challenge. While it’s long been a subject of academic curiosity, no one prior to Endurance had ever drilled an offshore geothermal well before, meaning the team can’t simply transplant existing land-based technology to the seafloor. “Every component that you would use terrestrially now needs to be either modified or built completely from scratch,” Redd explained. “And so you multiply that across every component required to make these kinds of infrastructure projects happen, and it’s a lot of work.”
No kidding. But if Endurance can pull it off, Redd sees this resource as “the perfect energy source for the future.” A conference paper presented by the geoscience company Viridien last year estimates that offshore geothermal resources worldwide could yield about 6 terawatts of recoverable electric power — nearly twice the world’s current continuous electricity output.
“We can access terawatts of power. There’s no fuel. We can site next to extremely large cities around the Pacific. We have no surface presence,” Redd said, ticking off the advantages. Plus, the three necessary ingredients for a high-quality geothermal well — permeable rock, high heat, and water — are widely accessible offshore, he added. Eventually, he expects subsea geothermal to undercut natural gas in Endurance’s target markets: electricity grids, industrial facilities, and data centers across the Pacific Islands, the U.S. West Coast, and Northeast Asia, all of which sit along the undersea volcanic zone known as the “Ring of Fire.”
The way Redd sees it, advances in subsea technology pioneered by the offshore wind, oil, and gas industries have cleared much of the technological path to making underwater geothermal a viable clean energy resource. In his view, what’s been missing is simply the ambition to chase the opportunity in the private market. SpaceX, he said, really proved what’s possible for a scrappy startup to achieve.
“It is quite new at industrial scale for a small company with a bunch of fairly young people to go after something like this,” he told me. “Before SpaceX went to launch a rocket as a private company, no one thought you could get to orbit as a private company. And so that has really seeded this ambition.”
On Greenland’s deepsea mining ban, Indonesia floating nuclear, and a solar boom
Current conditions: Hurricane Trudy has weakened from its peak as a Category 2 storm but still threatens up to 8 inches of rain as it swirls off Baja California • A nor’easter is howling through the Mid-Atlantic this week, hammering the coast with winds of up to 70 miles per hour • A humid overcast has settled over Paris this week as French authorities struggle to regain control after protests over living costs gave way to anarchic riots.
At least 47 major data center projects have been delayed, withdrawn, or blocked so far this year, according to data the regulatory intelligence service RegLayer shared with the Financial Times — and that may be a “conservative estimate.” Just 35% of planned data centers are “credible,” analysts told the newspaper, as more than 1,000 communities across the United States now have restrictions on artificial intelligence infrastructure. The data comes as investors look increasingly jittery about AI following ChatGPT-maker OpenAI’s missing a key revenue metric this year.
Those findings stand in contrast with the numbers from our data service, Heatmap Pro. Based on our research, at least 107 projects faced cancellation so far this year, putting 2026 on track to beat last year, which saw 108 proposals nixed.
Unless you’re living off the grid and away from any social media (if so, I’m jealous), then you can probably surmise that not-in-my-backyard opposition prevails in many such cases against proposed data centers. That makes selling would-be neighbors on the projects critical. New polling by the advocacy group GoodPower found that a binding promise to protect local electricity rates boosts support for the projects upward by as much as 14 points. Such a pledge worked primarily on the 78% of voters who distrust data centers. Another potential winner: Pair a data center with renewables. At least 46% of respondents to the poll said their support would increase if a project were powered by renewables. The survey spoke to 2,610 registered voters last month and oversampled in states with at least 200 data centers completed: Arizona, Georgia, Indiana, Pennsylvania, Texas, and Virginia.
Greenland wants to find ways to exploit its mineral riches in hopes of generating enough income from industries other than fishing and tourism to eventually wean off subsidies from the governments of Denmark and the European Union. Earlier this month, as you may recall, the self-governing Danish island gave a project the green light. But the government in Nuuk doesn’t want miners harvesting metals from the seabed surrounding the Arctic island, which are fertile fishing grounds and could, in theory, lead to mineral production without meaningful infrastructure to create jobs for Greenlandic people. Last week, the Greenlandic Parliament adopted a resolution requiring the government to draft legislation banning deep-sea mining. All members present voted to approve the proposal, according to Sermitsiaq, a leading newspaper in Nuuk. The ban would, if adopted, last until the end of 2029, with the possibility of an extension for two years at a time.
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Long before the race for small modular reactors kicked off, Russia launched a floating nuclear power station and sailed the vessel up to the Arctic to power a small town. Now, as you may recall, the state-owned Russian nuclear company Rosatom is making plans to build more floating nuclear plants, and it has a major nuclear newcomer nation as an offtaker. Last week, NucNet reported, Rosatom announced a deal with Indonesia’s state-owned PT Pembangkit Listrik Nuklir to supply electricity to northern Indonesia from at least two floating nuclear plants with a capacity of 200 megawatts each.

Over the past decade, small-scale and rooftop solar systems increased from 18,812 gigawatt-hours to 92,979 gigawatt-hours, an increase of over 394%. That’s according to a new analysis from the Energy Information Administration, which found that California, Arizona, Texas, Florida are the regions with the most abundant solar resources. Even though the state has worse solar resources in general, New York ranked fifth as a result of growing capacity. Still, the rate of growth in generation has slowed over the past three years. l
The Trump administration is pulling out all the stops for Alaskans who want to drill and transport fossil fuels, mine minerals, and log trees. Now he’s easing rules on hunters. A new final rule from the National Park Service has revived a hunting method the Biden administration banned in 2024: Baiting bears with doughnuts soaked in bacon grease. Hunters use the baits to lure bears to close range before shooting them. “Some hunters prefer to use strong-smelling, high-calorie foods like pastries, doughnuts, meat scraps or fish remains to lure bears from miles away,” The New York Times reported. “But some conservationists say the practice is unethical and risks making the bears accustomed to human food, which could endanger people.”
What would happen to Project Jupiter if the Bipartisan American Affordability and Jobs Act is passed?
One of the nation’s largest data centers is struggling under permitting woes. So let’s play a game: would the bipartisan permitting bill in Congress make the path easier, or might the federal legislation be irrelevant to large hyperscalers under development today?
Meet Project Jupiter, a mega project in southern New Mexico in Dona Ana County under development by Oracle and OpenAI, with financial backing from SoftBank and political support from the Trump administration for being a part of Stargate, a major Trump administration public-private initiative boosting AI development. Project Jupiter would be one of the largest data centers in the country if completed and currently is expected to run on a microgrid powered by fuel cells converting gas to electricity, which the developers claim will burn much cleaner than a typical off-grid gas turbine power plant.
Solving the energy side of the equation is a major hurdle for Jupiter, largely because of permitting delays and legal challenges.
In mid-September, the New Mexico Supreme Court lifted a stay it placed on consideration of the project’s state air permitting application. But on Wednesday, the Santa Fe New Mexican published emails between the New Mexico Environment Department and Project Jupiter staff detailing that independent emissions modeling showed pollution would be greater than predicted by the developers, after they had already requested permission to emit more CO2 than the state’s three largest cities combined. A final decision on the air permit was expected in November; the emails suggest the deadline may slip further. After the emails were reported, Oracle declared it would try to reduce emissions from the site by more than 30%.
At the same time, the New Mexico Justice Department is opposing the Federal Energy Regulatory Commission’s environmental assessment under the National Environmental Policy Act for a gas pipeline key to powering the project. The state’s attorneys assert the agency improperly failed to examine how the data center’s use of the pipeline would affect the environment. This week, a dozen GOP attorneys general representing states with large gas industries wrote FERC insisting they ignore the state’s protests, arguing that a recent Supreme Court ruling – known colloquially as Seven County – meant the federal government doesn’t need to look at the data centers gas pipelines are feeding when the lines are reviewed. Oracle has declared a “force majeure” over the pipeline delay. Rumors have circulated that trucks may just bring gas in for operations; company representatives told the Dona Ana County Commission this week those claims were “misinformation.”
Amidst these delays and potential legal conflicts, I’ve sought to understand whether projects like these – large data centers racing to operate within the next year or two – would be affected by enactment of the Bipartisan American Affordability and Jobs Act of 2026, a major permitting reform deal negotiated in part by New Mexico’s senior senator, Energy and Natural Resources chairman Martin Heinrich.
In Washington D.C., this legislation is exciting many constituencies, including energy industry types, policy wonks, business-friendly climate advocates. At the same time, more conservation-minded environmental groups opposed to provisions benefiting the fossil fuel industry are leaning into an argument that the legislation would accelerate a new era of gas-dominant data center construction.
Last week, I wrote about the environmentalists’ argument. I also examined the parts of the bill unlocking a new transmission build-out and requiring data center ratepayer protection. If enacted, FERC would have to require utilities to charge data centers not only for the costs of new grid upgrades but the charges incurred for using the grid, too. As my colleague Robinson Meyer has written, by forcing AI infrastructure operators to pay for both embedded and incremental energy costs, the legislation would essentially mean data centers paying both to reduce rates and build new energy generation. We’re seeing in real time what happens when you don’t deal with the transmission connection system while building new grid upgrades: companies will often opt to just build their own private off-grid fossil fuel islands. In Texas, for example, we’re seeing transmission hook-up delays lead to companies just building their own gas plants instead. This is not to say companies won’t still go off the grid if this bill passes, but it’s a serious consequence of our dilapidated energy system worth considering.
So I decided to evaluate Project Jupiter as a test case. How might the permitting bill affect this project and other big data centers at a stage like it?
For starters, let's say what the permitting bill does not do. It wouldn’t change the Clean Air Act. Project Jupiter would be one of the largest data centers in the country if completed, as well as potentially one of the nation’s biggest CO2 emitters if permitted as proposed. Nothing in the bill would affect requirements that the project adhere to national air emissions standards, so it wouldn’t affect the New Mexico Environment Department’s pending decision around the project’s air permits.
Enacting BAAJA could potentially affect this sprawling data center project in extremely hypothetical ways. It would reduce legal risks associated with future interstate gas pipelines under development expected to potentially branch out to Project Jupiter, including the Desert Southwest Expansion pipeline. It’s easy to understand in the words of Robert Pattinson in Primetime how this looks: like an easier path to expanding gas generation in this area.
On renewables, the bipartisan permitting deal would codify new permitting certainty and timeline provisions that claim to make it easier for companies to pursue solar development on federal acreage managed by the Bureau of Land Management. Project Jupiter just concluded a request for proposals to procure two gigawatts of renewable energy including solar power to meet the developers’ pledge to achieve 100% carbon matching by 2031 and Thiagarajan previously told the commission they’ve examined potentially getting energy from solar projects nearby on BLM lands.
But all of this is too theoretical and the case for any individual early-stage energy project too. Not to mention that we have no idea how the Trump administration would implement this certainty language, even for Project Jupiter.
To me, if people want to earnestly understand how the bipartisan permitting bill might actually affect data centers, they need to fully consider how making it easier and more transparent to hook up to the existing electric grid could reduce how much on-site gas generation is used at AI data center operations.
Delays in state permitting for the off-grid fuel cell plant have led Project Jupiter’s developers to consider what turning to the power grid would look like. In early September during a Dona Ana County commission meeting, Oracle executive vice president Mahest Thiagarajan told the panel, “If we end up in a situation where the air permit is not actually approved, I do have to work with a grid provider. Whether it is actually part of the grid or they built the grid for me could be TBD.”
“It doesn’t need to be on the grid, but I need [a] source of power to help power the data center,” Thiagarajan said.
Commission chair Manuel Sanchez replied that the microgrid plans were established in their community benefit agreement but he supported proposals requiring data center developers paying for upgrades and directly paying to reduce electricity rates for nearby residents. “It’s actually provided a downward pressure on rates,” Sanchez said, referring directly to such a policy created by the Georgia Public Service Commission.
Thiagarajan agreed. “My current plan is to continue to work with NMED [the New Mexico Environment Division] and get the off-grid site. If for any reason we have to, because I don’t have the air permit and I have to build the site, I strongly believe it has to come with me bringing down pressure to the rates. Period. I don’t think that’s a question of, I’m not increasing the rates. I actually have to come in and say, I am lowering the rates here.”
If Congress enacted this permitting bill in the lame duck, would Project Jupiter ditch plans to be off grid? It’s challenging to prove or disprove such a hypothetical. Representatives for the project did not respond to requests for comment. But we know any attempts at grid hookups without greater ratepayer protections are only leading to more conflict locally; this week, when Project Jupiter tried proposing a hook up to the grid for emergency power, the county commission fumed. Right now, the plan is still to power Project Jupiter with the gas fuel cell generation on site.
As I concluded this research, I noticed Heinrich’s office has actually promoted news coverage about what his efforts to enact data center ratepayer protections would do to Project Jupiter.
In early August, as the Senate was leaving for a summer recess, his office republished a Santa Fe New Mexican article about legislation the senator authored – the GRID Savings Act – and its potential impact on Project Jupiter. The article claimed that if Project Jupiter was unable to get its air permit, they’d be able to get power a different way under his proposal. The local news outlet also quoted an email from Sanchez, the county commission chair, stating that Heinrich’s bill “could be an avenue for Project Jupiter to fulfill their requirements if the air permit is denied.” Sanchez did not respond to requests for comment.
So I asked Senator Heinrich’s office for comment about this republished article, as well as if his permitting deal would indeed help ensure Project Jupiter was completed and came online. To conclude this story, here is their full statement:
The Senator has been clear that building big things responsibly means putting communities first. As he stated in his interview with the Albuquerque Journal, Project Jupiter botched community engagement from the start.
BAAJA is about making sure we build the energy infrastructure we need while keeping costs down for families and small businesses in New Mexico and across the country. The legislation would help get new energy generation, primarily clean energy, on the grid. By getting the energy onto the grid, states like New Mexico, which has enacted the Energy Transition Act, can continue working to ensure the energy powering our grid is increasingly clean.
The Senator has fought to ensure that growing energy demand doesn’t come at the expense of New Mexicans’ electricity bills by requiring data centers to pay for all of their associated transmission costs, rather than those costs shifting onto ratepayers. Ultimately, the Senator strongly believes that any major development, including data centers, should come as a benefit to the communities that host them, not a burden — and that starts with meaningful community engagement and real benefits for New Mexicans.
To be clear, BAAJA is federal legislation focused on energy infrastructure and grid connectivity. It does not ‘permit’ data centers. State and local government approval is still required. The Senator's legislation addresses the federal energy infrastructure challenges associated with a grid that cannot keep up with demand; it does not circumvent the state and local processes that determine whether Project Jupiter moves forward.
Media representatives for Project Jupiter did not respond to requests for comment.