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On critical minerals, Tesla’s home battery business, and India’s heat wave

Current conditions: The Silver Fire, which erupted in eastern California on Sunday, spread to 1,589 acres and is 47% contained • More than 200,000 customers in Michigan are still without power following an ice storm • Torrential downpours this week could drop four months’ worth of rain and trigger flash flooding across the Ohio Valley.
As his administration readies broad-based tariffs to be unveiled on Wednesday, President Trump is reportedly considering issuing an executive order that would fast-track permitting for deep-sea mining for critical minerals in international waters. Sources told Reuters the order would also let mining projects skip a review process and mining code put in place by the United Nations. Minerals on the seafloor – including cobalt, nickel, copper, and lithium – are essential for products including electric vehicle batteries, solar panels, and wind turbines, though the Trump administration hasn’t mentioned clean tech in its recent efforts to bolster the nation’s access to the materials. Last week, Trump invoked emergency powers to expand domestic critical minerals production in the name of “transportation, infrastructure, defense capabilities, and the next generation of technology.” He is also reportedly readying tariffs on copper in an attempt to boost domestic production, Heatmap’s Matthew Zeitlin writes.
The environmental impacts of deep-sea mining aren’t fully understood, but many fear “it could pose grave consequences for both marine life and planetary health,” as the World Resources Institute explains. Moving to bypass international safeguards would “raise tensions with other nations competing for resources in international waters, and who believe permitting should be in the hands of a global body that oversees access and resolves disputes,” reported Reuters.
New research suggests that climate change will hit the global economy much harder than previously thought. The study, published in the journal Environmental Research Letters, combines economic models with climate change models and then factors in the effect of weather disasters on the global supply chain – something other forecasts have omitted. “We found if the Earth warms by more than 3 degrees Celsius by the end of the century, the estimated harm to the global economy jumped from an average of 11% (under previous modelling assumptions) to 40% (under our modelling assumptions),” the researchers explained. “This level of damage could devastate livelihoods in large parts of the world.” Experts project that the world will warm by about 2.7 degrees Celsius by 2100 compared to pre-industrial averages, so the new study is based on worst-case scenarios, but it suggests that current economic models are vastly underestimating the economic impact of global heating and its many knock-on effects. That said, recent documents seen by E&E News show that some of the world’s top banks now think those worst-case scenarios are looking more likely. “We now expect a 3°C world,” Morgan Stanley analysts wrote in a report this month.
A group of nearly 2,000 U.S. scientists published an “SOS” to the American public, condemning what it calls a “wholesale assault on U.S. science” by the Trump administration. In the letter, published in Scientific American, the scientists say “the administration is blocking research on topics it finds objectionable, such as climate change,” and warn that “other countries will lead the development of novel disease treatments, clean energy sources, and the new technologies of the future. Their populations will be healthier, and their economies will surpass us in business, defense, intelligence gathering, and monitoring our planet’s health. The damage to our nation’s scientific enterprise could take decades to reverse.
Consumers have become increasingly turned off by Tesla CEO Elon Musk’s political involvement in the Trump administration, and the backlash seems to be hurting parts of the company beyond electric vehicles. According to Electrek, people looking to install home solar systems are asking for alternatives to Tesla’s Powerwall battery packs. Data from home energy solutions marketplace EnergySage shows that nearly 70% of potential home solar buyers seeking quotes in the first two months of 2025 requested an alternative supplier. “Do you offer a battery from a supplier other than Tesla?” one customer asked. “Though we have a Tesla Powerwall and love it, and we love our Tesla Model 3 and Y, we are outraged at Musk’s politics, so we don’t wish to send him more money.”
Forecasters are warning that India could see an exceptionally hot few months leading up to summer after the country experienced an unusually warm March. Mrutyunjay Mohapatra, director general of the India Meteorological Department, said on Monday that heat wave conditions are likely to persist through April and May across much of the country. “From April to June, most parts of north and east India, central India, and the plains of north-west India are expected to experience two-to-four more heatwave days than normal,” he said. India is the world’s most populous nation and the third largest greenhouse gas emitter. Most of its emissions come from the energy sector, and especially the burning of coal. The heat waves are expected to increase energy demand (and thus coal usage) as more people switch on air conditioners to keep cool. Last year, temperatures reached 123 degrees Fahrenheit in India’s Rajasthan state.
Preliminary analysis suggests that China’s recent efforts to curb air pollution may have inadvertently caused global warming to accelerate. Why? Because these moves also reduced levels of atmospheric aerosols that were helping cool things down.
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A new front opens in the data center wars.
A series of lawsuits filed in federal court asks a big question – are data center moratoria constitutional?
In early August, data center developer DC Blox sued the city of Nashville in federal court to overturn a zoning moratorium stopping them from building a hyperscale facility adjacent to the city zoo. “The Data Center Moratorium, moreover, is a targeted attack against DC BLOX, in violation of federal constitutional protections,” the suit argued, claiming that it defied the corporation’s due process and equal protection rights.
Around the same time, another developer – Wixom Industrial One – filed a federal lawsuit against the city of Wixom, Michigan, to try and “invalidate the city’s illegal police power moratorium” blocking their data center.
These two cases were far from novel or the first of their kind, and they’re now a fresh front in the battle over hyperscale data centers. At least that’s what some who work on these cases say: In April, attorneys with the law firm Vorys published a “client alert” asserting “many moratoria may be vulnerable to statutory, procedural, and constitutional challenges.” The attorneys advised that constitutional arguments against moratoria “may be stronger where a government singles out data centers without a sound factual basis, treats similar land uses differently without a reasonable basis, or adopts a restriction driven more by political pressure than by defensible planning or regulatory objectives.”
Months later, according to court documents, the Vorys attorneys who authored the alert now represent real estate firm Thor Equities in a federal case against the Ohio city of Urbana, arguing the city’s decision to reject their data center project broke “fundamental protections” under the U.S. Constitution. (Vorys and Thor Equities did not respond to requests for comment.)
It’s unclear how many of these kinds of cases have been filed to date. Data on federal court cases is quite opaque. But legal experts and industry attorneys tell me we should expect them to be on the rise as developers seek whatever tools they can find to get projects built.
“Bringing a lawsuit like this is fairly cheap, something they can do at a relatively low cost, and imposes a real cost on local governments to defend themselves,” said Daniel Metzger, director of the Cities Climate Law Initiative at Columbia Law School’s Sabin Center. “The cases out there will be bellwethers. And if successful, there’ll be a lot more of them.”
What developers probably want looks a lot like Hill County, Texas, where an LLC proposing an $80 million data center project was stymied in May by the state’s first countywide moratorium. (It predated Governor Greg Abbott’s temporary freeze of data center development in Texas by three months.) Within a period of only a few weeks, the LLC sued and the county rescinded the pause on approvals. The case was dropped a month later. Local reports state the county had to afterwards pay the corporation $100,000 in legal fees – a drop in the bucket compared to what a drawn-out court battle would have cost the rural county.
Metzger said whether the companies will win these cases is ultimately not the point – their goal is to win a finished data center, not a judicial ruling. By filing expansive litigation in the national court system, a hypothetical developer can exhaust the coffers of a city or county with legal expenses that are chump change compared to would-be billions in private financing for compute infrastructure.
“These lawsuits may deter some local governments from taking steps to oppose data center development, just because of the cost it would impose on them to defend a lawsuit, even if they know they have a strong legal basis for the action they want to take.”
Those I spoke to in private practice about data center developers’ constitutional arguments agreed with Metzger’s assessment that it’s too early to tell whether the companies will win. Generally, they said, a city or county will win this kind of case if it demonstrates a rational basis for its decision-making and courts typically want to defer to governmental autonomy. The onus will be on the developers to prove a moratorium was meritless – that’s the due process challenge – or unfairly targeted their industry in a way other sectors don’t face, which is the basis of the equal protection claim.
“What they’re saying is in essence that these actions the municipality is taking are arbitrary and capricious, which is one of the sort of catch-all standards,” Thomas Allen, a partner at K&L Gates, told me. “They say the laws lack a rational basis. And then they make equal protection claims, saying data centers are being singled out because of political concerns as opposed to actual things relevant to the legislature’s directive. They’re not basing their decisions on the underlying merits of the project but reacting to political pressure.”
“It’s a reliance question and it’s about the treatment of their projects,” added Laura Morton, an attorney with Ashurst Perkins Coie. “It’s always been important to talk about and engage with communities where your infrastructure is planned. Here, I think this is the developers going in, maybe having conversations, and then suddenly they’re getting a reversal after already receiving these approvals and making investments based off of what the conversations and rules were.”
The likelihood of these constitutional challenges reaching higher courts anytime soon is quite low. It’ll be a long time before we see one of these cases reach a verdict, let alone some kind of appeals process come to fruition. Nevertheless, the new legal ambiguity around these local restrictions is an important new facet of the data center wars, including for developers.
“Companies want to act within the law to get [things] done, so whatever tactics they can do to help get the project over the line that are legal and ethical, they may try those,” Allen told me. “And if that includes the pressure of a lawsuit, that’s a judgment they’ll have to make.”
And more on this week’s conflicts around project development.
1. Montgomery County, Pennsylvania – We reached a new normal in the data center backlash, and it all seems to have started in King of Prussia.
2. Columbia County, Wisconsin – The gubernatorial race in this state is transforming local fights over wind projects into must-watch popcorn fodder for anyone obsessed with the state of the energy transition, or national politics for that matter.
3. Shelby County, Alabama – One quick update on the intervention of John Rich, the country star turned Trump’s “special envoy for American landowners,” in an Alabama Power transmission project: it’s getting a lot more elected officials involved.
4. New Jersey – We try to conclude every Hotspots on a positive note. So this week’s silver lining comes to you from the Garden State, where state regulators have approved more than a dozen agrivoltaics projects.
A conversation with Ella Nilsen — formerly of CNN, now with Echo Communications — about where we stand in the fight over the energy transition.
This week’s conversation is with Ella Nilsen, who recently left CNN as a climate reporter and is now a new vice president at energy and cleantech PR firm Echo Communications. Having worked on Capitol Hill alongside Nilsen, I knew her to be an exceptional reporter who asked hard questions of those in power on all sides. So when I found out she was taking her journalism hat off and putting the comms cap on, I wanted to do something you rarely get to do with one of your reporting peers: ask for her own opinion about where we stand in the fight over the energy transition.
Our chat was lightly edited for clarity.
What’s it like going from CNN and climate journalism to advising on communications in the energy sector, especially when it comes to clean tech in this fraught moment?
So before I covered climate and clean energy, I was a political reporter who covered campaign cycles and Capitol Hill for a while, and I was always interested in the nexus of politics and politics. I tried to make as much of my coverage about that. Politics is policy, and the other way around.
Being on the other side of it is, well, I know from my experience as a reporter what interests them. I’m trying to figure out ways to make sure when I’m bugging you all that the pitch lands, because hopefully it’ll be something people are interested in. Things are changing so fast. It’s a really fascinating time to be a reporter and be in the clean energy comms space.
Okay, but now that you’re in clean energy comms, how do you handicap the fight over developing these technologies? Who is winning, who is losing, and why?
I think it’s tough to call exact winners and losers right now because over the last few months, there have been so many new and interesting developments.
Look at the Invest in Tomorrow Coalition, which has been getting involved in Republican primaries for Freedom Caucus members. There’s been this perception for a long time that the clean energy industry didn’t fare well in the One Big Beautiful Bill Act fight. They had important wins while losing pretty key stuff. But there’s been this interesting reckoning within the industry, and even this last summer, where people are moving the ball forward in interesting ways. They’re trying to get involved in political fights with direct results.
What messages do these primaries send? On the one hand I can see there being political consequences but also, now, more solar energy money going into Republican politics has the anti-renewable folks saying they need to go harder at them. I’m curious how you see the energy fight landscape changing in light of these election results.
I think it shows the industry has some fight in it. What the Coalition would probably say is, they want to be lethal and this is political warfare. They’re trying to be taken seriously.
There is sort of this two-pronged strategy happening right now. Obviously Invest in Tomorrow has gotten a lot of press attention for their track record. There’s also within the industry an attempt to shape a public narrative around wind, solar, battery storage to combat misinformation, both through conventional media and social media. They’re happening in tandem and it's a reflection of the results.
How is the backlash over data center development affecting the work you’re now doing?
Well, I’m still early, but I think the data center question is a fascinating one. Conversations around policy and where we go from here really seem to me to be happening in the state realm. Not a lot of policy happening at the federal level. There’s New York State’s data center pause, which is leading to lawmakers trying to get more leverage.
It’s in the backdrop, where projects are being announced with massive power plants to supply new data center demand, and at the same time there’s a conversation around virtual power plants, DERs. Another phrase emerging for it is “community power.”
It’s starting to be a fascinating conversation around community benefits. There are tax benefits when a data center comes to town but when it comes to energy use, what can communities actually leverage out of this? I know former Energy Secretary Jennifer Granholm has been arguing for strong community benefit agreements, getting big tech companies to pay for solar and EVs and then using all of that to create a virtual power plant. Getting that to be flexible for data centers. That’s only one part of the pie but it’s fascinating to have this conversation about what forms of energy we need for all this demand happening.
What do you foresee about the impact of the backlash, given that land use, visuals, air, and water – its all being swept up in the same conversation?
I don’t have a crystal ball and have the same questions.
It’s all happening so quickly and it’s all playing out in so many different states. There are really important questions here and there are people smarter than I am on this, talking about how we meet this demand in the short term and long term or whether this is an opportunity for getting clean energy onto the grid. But it’s a delicate dance.