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Activists on both the left and the right are pushing back against AI development.

The techlash over data center development is becoming a potent political force that could shape elections for generations.
At a national level, political leaders remain dedicated to the global race to dominate artificial intelligence. But cracks are beginning to show when it comes to support for the infrastructure necessary to get there. Nearly every week now across the U.S., from arid Tucson, Arizona, to the suburban sprawl of the D.C. area, Americans are protesting, rejecting, restricting, or banning new data center development.
It’s also popping up in our elections. On Tuesday in Virginia, voters in the No. 1 state for data center development ousted their GOP political leadership, sending to the governor’s mansion a Democrat who promised to make the growing sector pay more for its electricity. In the run-up to Election Day, polling showed voters were hyperfocused on the risk that data centers could negatively affect their lives. Some candidates in local races campaigned almost entirely on the issue, while others pledged to new bans.
“There’s a lot of other things going on too, [but] data centers are much more important than candidates want to admit,” said Chris Miller, president of Piedmont Environmental Council, a conservation advocacy group in Virginia that tracks and fights data center development. “An industry that is used to moving fast and breaking things is moving up against a physical world they’ve never dealt with before.”
Meanwhile, in Georgia, two Democrats won seats on the Public Service Commission on campaigns that wound up focused on data centers and rising energy bills.
We here at Heatmap have gone to great lengths to better understand why this opposition is so widespread. In August, our data intelligence platform Heatmap Pro conducted polling to figure out how Americans feel about the billions of dollars being poured into data centers for cloud computing and AI development. We found that the dislike is incredibly strong — less than half of Americans are willing to support a data center near them. The hostility crosses party lines, with Republicans nearly as likely to express disdain towards these projects as Democrats. The frustrations with these facilities are also poised to increase over generations, as data centers are most underwater with the younger cohorts, aged 18 to 49, who may be more familiar with AI.
The polling also showed that people are easily convinced to oppose data center development in their neighborhoods. Rhetoric in favor of data centers — how they contribute to tax revenue, create jobs, help the U.S. compete with China — might win some hearts and minds, but rhetoric decrying data centers consistently polled stronger than any of the supportive arguments we tested. This registered across party lines. And making matters worse for the tech sector, individuals who previously opposed renewable energy projects were more likely to be anti-data centers.
What you get in the end is a populist conflict appealing to younger people that bridges the ends of the political spectrum, connecting the left and right — and that should make developers very worried.
On one end of the spectrum, left-aligned activists and local leaders are raging against the energy and water system strain that’ll come from the data center boom. You have folks like Blake Coe, an activist fighting data center projects in San Marcos, Texas. Coe told me he began opposing data centers after being politically awakened by a totally different issue: the Israeli government’s offensive in Gaza and alleged genocide of Palestinians there. But as he told me, he didn’t have “the clout, the money, the whatever to work on fixing a genocide.” After learning about the project in San Marcos, he concluded that the community there was something he “can fight for.”
“There’s been this air of inevitability around data centers and AI and all this new tech stuff coming out — how it’s going to happen, so either get out of the way or get run over,” he said. “And our job is to try and remind people in power of their humanity, at the end of the day.”
At the same time, activists fighting renewable energy projects from the right are also lining up to fight data centers, echoing the same frustrations voiced by environmentalists while also tarring the infrastructure as part of a broader social change imposed by Big Tech elites. Take Indiana, one of the most popular data center destinations after Virginia, where the backlash is hitting Indianapolis and rural GOP strongholds alike. Or Missouri, whose Senator Josh Hawley summed up my story here in one post in October.
“These data centers are massive electricity hogs,” Hawley said on X, months after notably leading the push for the Trump administration to defund the Grain Belt Express, a large transmission line proposal that its developer said will help states meet data center electricity demand. “That’s why Silicon Valley wants more transmission lines, solar farms and windmills,” Hawley said. “Somebody has to pay for it all — don’t believe any politician who says it won’t ultimately be you.”
In Oklahoma, 21-year-old GOP organizer Kennedy Laplante Garza started fighting a nearby data center proposal known as Clydesdale after learning over the summer that it would be built a mile from her family’s farm. “I didn’t even know that much about data centers at that point,” she told me. “But I knew my friends across the state were fighting similar things, whether they were solar panels or wind turbines.” Garza wound up organizing a mass petition campaign against the project that ultimately proved unsuccessful — Clydesdale broke ground this week.
Out in Oklahoma there aren’t very many elected Democrats at all, just different shades of Republican. But because of that, Garza told me, party affiliation matters less to voters than whether their elected representatives are listening to them — meaning there could still be consequences for GOP politicians who side with tech companies over any populist revolt against data center development.
“We’d probably see our elections flip, too, if people started running on it,” Garza said, referring to data center opposition.
This brings us back to Virginia, where local races now hinge on data center conflicts. On Tuesday, Democrat John McAuliff — a former White House energy adviser who worked on the Inflation Reduction Act — flipped a seat in the state House of Delegates, taking out an incumbent Republican representing a D.C. ex-urb that went for Donald Trump in last year’s presidential election. McAuliff’s secret sauce? A laser focus on the Virginia data center boom.
“There’s the environmental impact these are having, and of course these are very large water users. But there’s also the cultural impact that they are having,” McAuliff told me in an interview after his victory. “And then of course, there’s the energy bills piece. Because we’re all here in Data Center Alley, we’re bearing the biggest brunt of the increase in transmission lines, the increase in substations.”
Representatives of the nascent data center sector are beginning to acknowledge that they have a PR problem, but they say the issue is one of education — Americans simply do not yet understand the tax and employment benefits that can come with new data centers. In an interview conducted before this most recent Election Day, Data Center Coalition Vice President for State Policy Dan Diorio told me that opposition has “cut across states,” and that protests have become “very much a learning experience.”
“There definitely is a need for better communication,” Diorio said, adding that companies need to be “responsive to things like aesthetics or sound,” while making sure their projects match “the economic development goals of a community.”
Whenever I asked Diorio about how the data center sector should respond to this political quagmire, he would pivot to education. In the industry’s view, people would be more supportive if they simply knew more about companies’ ongoing sustainability efforts.
This left me with the sense that the business sector does not fully understand the scope of the problem it’s facing. Bukola Folashakin, an analyst with Morningstar, told me that’s plainly evident from the sheer magnitude of money — billions — being invested in a new American data center boom without hesitation.
“The data right now, what we’re seeing,” Folashakin said, “is that it’s not clear if investors are concerned from a social perspective. If social issues were such a concern, you wouldn’t see capital going in that direction.”
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Big fundraises for Nyobolt and Skeleton Technologies, plus more of the week’s biggest money moves.
Following a quiet week for new deals, the industry is back at it with a bunch of capital flowing into some of the industry’s most active areas. My colleague Alexander C. Kaufman already told you about one of the more buzzworthy announcements from data center-land in Wednesday’s AM newsletter: Wave energy startup Panthalassa raised $140 million in a round led by Peter Thiel to “perform AI inference computing at sea” using nodes powered by the ocean’s waves.
This week also saw fresh funding for more conventional data center infrastructure, as Nyobolt and Skeleton Technologies both announced later-stage rounds for data center backup power solutions. Meanwhile, it turns out Redwood Materials is not the only company bringing in significant capital for second-life EV battery systems — Moment Energy just raised $40 million to pursue a similar approach. Elsewhere, investors backed an effort to rebuild domestic magnesium production, and, in a glimmer of hope for a sector on the outs, gave a boost to green cement startup Terra CO2.
Cambridge-based startup Nyobolt has become the latest battery company to reach a $1 billion valuation, with its expansion into the data center market helping fuel excitement around its tech. Spun out of University of Cambridge research in 2019, the company develops ultra-fast-charging batteries based on a modified lithium-ion chemistry. Its core innovation is an anode made from niobium tungsten oxide, which Nyobolt says enables its batteries to charge to 80% in less than five minutes, with a cycle life that’s 10 times longer than conventional lithium-ion, all without the risk of fire.
The company has now raised a $60 Series C, following what it describes as a period of “rapid commercial momentum,” with revenue increasing five-fold year-over-year as customers in the robotics and data center industry piled in. Symbotic, an autonomous robotics company and existing customer, led the latest round. While Symbotic previously relied on supercapacitors to power its robots, Nyobolt’s says its batteries provide six times more energy capacity in a lighter package, allowing its warehouse robots to work for retailers like Walgreens, Target, and Kroger around the clock.
Now the startup is targeting data center customers too, positioning its tech as a fast-acting fix for the sudden power surges common to large-scale artificial intelligence workloads, as well as a temporary backup power solution for outages. While it has no confirmed domestic data center customers to date, it does have a nonbinding agreement with the Indian state of Rajasthan to deploy over 100 megawatts of off-grid AI data center and power management infrastructure, part of a broader push to expand its presence across the country.
Notably, the press release made no mention of plans to sell its tech to electric vehicle automakers, though this appears to have been a central focus previously. As recently as last summer, executive vice president Ramesh Narasimhan told the BBC that he hoped Nyobolt’s batteries would “transform the experience of owning an EV.” But while its tech does enable extremely fast charging, its underlying chemistry is not optimized for long-range driving. A sports car built to test the company’s batteries had just a 155 mile range. So like many of its climate tech peers, the company appears to be betting that data centers now represent a more reliable opportunity.
This week brought additional news from another European player aiming to smooth out data center power surges. Estonia-based supercapacitor startup Skeleton Technologies raised $39 million in what it describes as the first close of a pre-IPO funding round, with a U.S. listing planned for next year. Its core tech is built around a “curved graphene” structure, which the company likens to a crumpled sheet of paper with a high surface area. The graphene’s many exposed surfaces and edges allows it to hold more electric charge, which Skeleton says delivers a 72% improvement in energy density.
Like Nyobolt, Skeleton says its tech offers faster response times and longer cycle life. But supercapacitors are a fundamentally different technology than Nyobolt’s modified lithium-ion solution. Though they offer near-instantaneous response times, they store very little energy — just enough to smooth out microsecond power spikes in GPU workloads. Nyobolt’s batteries, by contrast, aim not only to smooth out data center power spikes, but also to deliver about 90 seconds of backup power in the case of an outage, before a generator or other backup source kicks in.
Skeleton is already mass-producing supercapacitors in Germany and delivering to unnamed “major U.S. hyperscalers for AI infrastructure.” It’s also making moves to expand its U.S. footprint ahead of its pending IPO, opening an engineering facility in Houston and aiming to begin domestic manufacturing of AI data center solutions in the first half of this year.
Last year brought a wave of new climate tech coalitions, with one of the most ambitious efforts known as the All Aboard Coalition. This group of venture firms is targeting the investment gap known as the missing middle, which falls between early-stage venture rounds and infrastructure funding. The model is relatively mechanical: When three or more member firms participate in a later-stage round for a company, the coalition automatically coinvests out of its own fund, matching the members’ combined contribution.
The group made its first investment in January, supporting the AI-powered geothermal exploration and development company Zanskar’s Series C round. This week, it announced its second: a $22 million commitment to low-carbon cement startup Terra CO2, bringing the company’s Series B total to $147 million. Cement production accounts for roughly 8% of global emissions, a figure Terra aims to shrink by making so-called "supplementary cementitious materials” — which can partially displace traditional cement in concrete mixes — from abundant silicate rocks. By grinding and thermally processing these rocks into a glassy powder, Terra’s product mimics the properties of conventional cement. The company says it can replace up to 50% of the cement in typical concrete mixes, lowering associated emissions by as much as 70%.
The new funding will help Terra build its first commercial-scale plant in Texas, exactly the type of first-of-a-kind project that the coalition was designed to support. But the scale of this challenge remains clear. As noted in ImpactAlpha’s coverage, the coalition has raised just $100 million toward its goal of a $300 million fund — already a relatively modest goal considering the capital intensity of novel infrastructure projects. Bloomberg previously reported that the group aimed to raise the full amount by the end of October 2025, raising questions about the willingness of LPs to bet on projects at this crucial but capital-intensive juncture.
When I think about repurposing used electric vehicle batteries for stationary storage, I think of battery recycling giant Redwood Materials, which raised a $425 million Series E in January after moving aggressively into this promising market. But while Redwood’s well-established recycling business certainly provides it with the largest pipeline of used batteries, it’s far from the only company pursuing this business model. A smaller player with a largely similar approach underscored that this week, when it announced a $40 million Series B to scale its gigafactory in Texas and expand its facilities in British Columbia.
That’s Moment Energy, which focuses on using second-life EV batteries to power commercial and industrial sites such as data centers, hospitals, and factories. Like Redwood, it relies on proprietary software to aggregate battery packs with myriad chemistries and design specs into coordinated grid-scale systems. What the company sees as its critical differentiator, however, is its safety standards. Moment has achieved UL certification, a key safety benchmark that it says others in the industry have yet to meet.
In a shot at its competitors, the company described itself in a press release as the “only provider proven capable of deploying second-life battery storage systems in the built environment without special dispensations or regulatory loopholes.” While Moment never names names, Redwood’s first commercial-scale system sits on its own private land in an open air setting, where certification is arguably unnecessary. “What most other second life [battery] companies are now trying to say is, let’s just lobby to make second life UL certification easier, because it is impossible to get UL certification, as it stands,” the company’s CEO, Edward Chiang, told TechCrunch. “But at Moment, we say that’s not true. We got it.”
As I wrote last September, it’s a good time to be a critical minerals startup, because as you may have heard, “critical minerals are the new oil.” These materials sit at the center of modern energy infrastructure — batteries, magnets, photovoltaic cells, and electrical wiring, to name just a few uses — plus their supply is concentrated in geopolitically tense regions and subject to extreme price volatility. It also certainly doesn’t hurt that the Trump administration loves them and wants to mine and refine way more of them in the U.S.
The latest beneficiary of this enthusiasm is Magrathea, which this week raised a $24 million Series A to build what it says will be the only new magnesium smelter in the U.S., in Arkansas. The company has now raised over $100 million in total, including a $28 million grant from the Department of Defense. Its approach relies on an electrolysis-based process that’s able to extract pure magnesium from seawater and brines, which it positions as a cleaner, cheaper alternative to the high-heat, emission-intensive method that China uses to produce most of the world’s magnesium today.
The U.S. military has taken note of this potential new domestic supply. Magrathea’s 2022 seed round coincided with Russia’s invasion of Ukraine, as the military looked to scale domestic defense tech supply chains. Magnesium alloys are often used to help reduce weight in EV components, a benefit equally applicable to military helicopters, drones, and next-generation fighter jets. So while these defense applications represent somewhat of a pivot from the startup’s initial focus, a greener fighter jet is still better than a dirty fighter jet.
Current conditions: A series of tornadoes has flattened entire neighborhoods in central and southern Mississippi, causing what one pastor called “just total devastation” • The heat index across the northern half of the Philippines’ main island of Luzon could feel as high as 122 degrees Fahrenheit, raising the risk of heat stroke • There will be some hot moms in Phoenix this weekend when temperatures in Arizona’s sprawling capital top 108 degrees on Mother’s Day.
President Donald Trump’s attempts to kill the offshore wind industry through regulatory fiat have largely failed to hold up in court. But as the administration finds new success in paying off developers to abandon ocean leases for seaward turbines, it’s attempting the original playbook now on the onshore wind sector, holding up more than 150 projects by refusing to give out once-routine approvals from the Department of Defense. That includes projects that are nowhere near military bases or defense-related infrastructure, and comes despite the fact that U.S. policymakers across the political spectrum agree we need to bring as much new power online as quickly as we can to meet booming demand from data centers and electrification. “This is the strategy for how you kill an industry while losing every case: just keep coming at the industry,” an energy lawyer told Heatmap’s Jael Holzman. “Create an uninvestable climate and let the chips fall where they may.” In other words: The bombardments may fail, but the siege can win..
When French energy giant TotalEnergies became the first offshore wind developer to take up Trump on his offer of $1 billion to abandon two projects back in March, the administration’s effort to kill off an industry Trump has personally opposed since long before he gained political power seemed to finally be catching a foothold following a series of legal retreats. By April, however, blowback to the deal had started building. Reporting from Heatmap’s Emily Pontecorvo found that the U.S. government’s agreement with Total didn’t actually mandate any new investments in fossil fuels, as the administration strongly implied, and that and that the payment may not have actually met the requirements to be drawn from a federal coffer designed to fund legal settlements. Shortly afterward, House Democrats announced plans to investigate Total’s contract with the government. This week, California regulators launched their own probe into one of two new developments that took up Trump’s offer, a floating offshore wind project that was set to be the first such project on the West Coast. Now one of the largest U.S. pension funds is reconsidering its stake in Total. Citing “significant concerns” over Total’s decision to cancel its two offshore wind leases and double down on fossil fuels, the New York State Common Retirement Fund said it would evaluate selling the $1.6 million stake in the company.
In a letter to Total CEO Patrick Pouyanné that the Financial Times reviewed, Thomas DiNapoli, the New York State comptroller and trustee of the retirement fund, said: “As the fund continually evaluates companies based on credible transition plans, portfolio companies’ backtracking may impact the fund’s risk assessment results and proxy voting decisions.” While “TotalEnergies had sought to be a leader in [the] energy transition,” he added, “now investors are left scratching their heads over how the board came to this decision to abandon that strategy and what it means for the future of the company and our stake in it.” In Total’s home country, the picture for offshore wind looks quite different. While Paris remains committed to expanding its world-leading nuclear fleet, a new floating offshore wind farm off France just started pumping electricity onto the grid.
Occidental Petroleum has once again pushed back the opening of the world’s largest carbon removal facility, with executives warning that they’re uncertain how quickly the delay can be resolved. Construction on the direct air capture megaproject in West Texas, known as Stratos, has been mostly complete for months. Last August, the company revised the start date to the end of the year. In February, Occidental said the operations would begin by the second quarter of this year. But in its first-quarter earnings call Wednesday, Richard Jackson, Occidental’s chief operating officer, who will take over for CEO Vicki Hollub when she retires at the end of this month, told analysts “the technology and process unit operations performed as expected.” He said the company had “identified an issue related to non-process components of the facility, unrelated to the technology” and was “currently evaluating the repair timeline and assessing the impact on the operations schedule,” according to Occidental’s official transcript of his remarks. When I emailed the company to ask for more details on what issues and specific components are holding up the project, a spokesperson responded: “We have nothing to offer beyond what Richard said that it’s non-process and we’ll provide an update next quarter.”
Make no mistake, it’s not all doom and gloom for DAC. Colorado and Wyoming this week signed an agreement to work together on carbon storage infrastructure. And a major breakthrough in Kenya “signals a new era” for geological storage of carbon dioxide, so heralded the Carbon Herald.
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The United States has expanded its sanctions on Cuba, forcing the Canadian miner that had been the Caribbean nation’s biggest foreign investor to flee as the Trump administration ramps up its effort to topple the 67-year-old communist regime and reassert Washington’s suzerainty over the island just 90 miles south of Florida. The new sanctions on Thursday, which came days after Trump broadened the U.S. embargo on Cuba, sent the price of shares in Canada’s Sherritt International Corporation tumbling 41% by the time the market closed in North America. For the past 32 years, the company has operated a nickel and cobalt mining operation on the island, providing one of Cuba’s few commercial lifelines into the global economy. While Sherritt said it had not yet been designated for sanctions, a listing “could occur at any time,” the company warned, and banks and other vendors might be “unable or unwilling” to keep supplying the firm. “In any event, the mere issuance of the executive order itself creates conditions that materially alter the corporation’s ability to operate in the ordinary course, including activities related to Sherritt’s Cuban joint venture operations,” Sherritt said in a statement on its website. “This is a massive blow to an already sinking economy,” Ricardo Torres, a leading Cuban-born economist at the American University in Washington, told the Financial Times.
The internal combustion engine is still the profit motor for Volkswagen. But when the world’s second-largest automaker reported its first-quarter earnings last week, the company said its latest electric vehicles are up to 80% as profitable as gasoline-powered alternatives. That’s according to a nugget InsideEVs highlighted this week from the investor update. Once Volkswagen launches its newest modular blueprint for its electric vehicle offerings — known internally as the Scalable Systems Platform, or SSP — the margins are expected to align more closely, said Arno Antlitz, the German auto giant’s chief financial officer. “We expect the margin to be fully comparable only with our future SSP platform,” he said.
Things are looking sunnier for what has long been the weakest sector of the American solar industry. SEG Solar, a Houston-based manufacturer, has announced plans to add 4 gigawatts of module production capacity to its factory in Texas’ largest city, creating a 6-gigawatt facility. The move comes as Elon Musk has vowed to dramatically scale up Tesla’s solar manufacturing capacity and First Solar builds its own 4-gigawatt facility.
And more of the week’s top news around development conflicts.
1. Benton County, Washington – The bellwether for Trump’s apparent freeze on new wind might just be a single project in Washington State: the Horse Heaven wind farm.
2. Box Elder County, Utah – The big data center fight of the week was the Kevin O’Leary-backed project in the middle of the Utah desert. But what actually happened?
3. Durham County, North Carolina – While the Shark Tank data center sucked up media oxygen, a more consequential fight for digital infrastructure is roiling in one of the largest cities in the Tar Heel State.
4. Richland County, Ohio – We close Hotspots on the longshot bid to overturn a renewable energy ban in this deeply MAGA county, which predictably failed.