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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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We knew the revived Chevrolet Bolt might have a limited run. Nobody knew it would be this limited.
General Motors began manufacturing the updated version of its small electric car late last year to begin deliveries this month. Already the news of its potential demise is here. GM says the Kansas factory that’s churning out Bolts will be repurposed to make combustion cars, including a Buick, of all things. Now, just as the arrival of the sub-$30,000 Bolt heralded a new age of more affordable electric cars, Chevy is dropping out of the race and putting its beloved little electric car on the backburner. Again.
The culprits in this case are clear. With the federal tax credit for buying EVs dead and gone, and with weakened emissions rules removing the incentive for car companies to pursue an aggressive electrification strategy, automakers are running back to the familiar embrace of fossil fuels. GM has already said it expects to lose billions as it adjusts its business strategy, curbing its EV push to meet the new reality under President Trump, where gas-burning cars remain much more profitable to build and sell.
The Bolt’s fate is the immediate fallout from that move. The Buick Envision, part of America’s army of indistinguishable gas-powered crossovers, had been built at a GM plant in China. Trump’s tariffs, however, incentivized the company to move production back to the U.S. The fact that GM repatriated the Envision at the expense of the Bolt tells you what you need to know about this moment in the U.S. auto market.
GM never promised that the Bolt would be back for good, and its return to limbo is par for the course when it comes to this plucky little car. The original Bolt EV had its problems, including a battery recall and glacial charging speeds by today’s standards. But the Bolt established GM’s place in the new EV age and found a flock of fans. At the time it was discontinued in 2023, it was the top-selling non-Tesla EV in America, selling more than 60,000 cars that year.
Fans clamored to get the car back. GM listened, and built a new version on the Ultium platform that forms the basis of its current generation of EVs. When I attended Chevy’s big reveal party for the new Bolt last year, it handed out merch reading “back by popular demand.” Yet GM always referred to the vehicle’s revival as a special run, as if not to get anyone’s hopes up that the Bolt would become a mainstay in the Chevy lineup.
Things could have been different, of course. GM has hinted at the possibility of expanding upon the Bolt with more models if the car succeeded in helping the company win the affordable EV race. Instead, the Kansas factory will turn back to combustion next year as Chevy builds some gas-powered Equinox SUVs there, moving production from Mexico after getting hammered by new tariffs. The Buick Envision, which GM has been making in China for nearly a decade, will begin Kansas production in 2028.
The Bolt’s second sudden death is a big blow to American EV lovers. Without a $7,500 tax break for buying an electric vehicle, Americans badly need more affordable options. Bolt, which starts around $29,000 in its most basic form, was set to lead a pack that would include other 2026 arrivals such as the customizable, Jeff Bezos-backed Slate truck and the reimagined third-generation Nissan Leaf. Now, you’d better act fast if you want to get behind the wheel of a Bolt.
Practically every week brings a flood of climate tech funding news and announcements — startups raising a new round, a venture capital firm closing a fresh fund, and big projects hitting (and missing) milestones. Going forward, I’ll close out each week with a roundup of some of the biggest stories that I didn’t get a chance to cover in full.
This week, we’ve got money for electric ships, next-gen geothermal, and residential electrification in Europe. Yay!
Many say battery-powered cargo ships will never make sense — that batteries are too heavy, too bulky, and would take up too much valuable space. FleetZero says it can make it work. Last Friday, the electric shipping startup raised a $43 million Series A round led by Obvious Ventures, with participation from other firms including Maersk Growth, the shipping giant’s corporate venture arm, and Breakthrough Energy Ventures. The funding will support production of the company’s hybrid and electric propulsion systems, as well as new manufacturing and R&D operations in Houston.
Ships’ bunker fuel is extremely polluting. It accounts for roughly 3% of global CO2 emissions and dirties the air with other pollutants such as sulfur and nitrogen oxides. Most players in the shipping decarbonization space want to shift to liquid fuels such as e-ammonia or e-methanol — a move that would require mulit-million-dollar engine overhauls and retrofits. FleetZero says that battery electrification will prove to be cheaper and simpler. The company is building batteries large enough to hybridize — and potentially one day fully electrify — large container ships.
As FleetZero’s CEO and co-founder Steven Henderson told my colleague Robinson Meyer on a 2024 episode of Heatmap’s Shift Key podcast, batteries are a relatively simple maritime decarbonization solution because “you can use existing infrastructure and build on it. You don’t need a new fundamental technology to do this.” And while the company has yet to provide any cost estimates for electrifying commercial shipping, as Henderson put it, “the numbers to do this are not outside the realm of possibility.”
The next-generation geothermal startup Sage Geosystems announced on Wednesday that it raised a $97 million Series B round, co-led by the renewable energy company Ormat Technologies and the growth equity firm Carbon Direct Capital. This came atop a hot week for geothermal overall. As I wrote already, the artificial intelligence-powered geothermal developer Zanskar announced a $115 million Series C round for its pursuit of AI-driven conventional geothermal, while Axios reported that the geothermal unicorn Fervo Energy has filed for an IPO.
Like Fervo, Sage uses drilling technology adapted from the oil and gas industry to create its own artificial reservoirs in hot, dry rock. The startup then pumps these fractures full of water, where it absorbs heat from the surrounding rocks before being brought to the surface as steam that’s used to generate electricity. Sage’s CEO, Cindy Taff — a former Shell executive — told Bloomberg that this latest investment will accelerate the company’s project timeline by a full year or two, allowing the company to put power on Nevada’s grid sometime in 2027.
This latest funding follows Sage’s strategic partnership with Ormat, announced last year, and could help the startup make good on its agreement with Meta to deliver up to 150 megawatts of clean electricity for the tech giant’s data centers starting in 2027.
Berlin-based startup Cloover — which helps Europeans finance home electrification upgrades — announced a $22 million Series A round on Wednesday, alongside a $1.2 billion debt facility from an unnamed “leading European bank” that it can draw on. The company, which describes itself as both the “operating system for energy independence” and the “Shopify of Energy,” aims to help homeowners ditch fossil fuels by facilitating loans to cover the upfront cost of, say, buying and installing heat pumps, rooftop solar, or home batteries — something traditional banks struggle to finance.
Cloover’s a fintech platform allows home energy installers to manage complex projects while offering loans for green upgrades to customers at the point of sale. The software’s AI-driven credit underwriting evaluates not just a customer’s credit score, but also the projected energy savings and performance of the upgrade itself, helping align the price and terms of borrowing with the anticipated economic value of the asset.
Forbes reports that Cloover has already financed roughly 2,500 home energy installations. The company says it’s profitable, generating nearly $100 million in sales last year. With this new funding, the startup plans to expand across Europe and is projecting $500 million in sales this year, anticipating an explosion in demand for distributed energy resources.
One of the oldest players in the race to commercialize fusion energy, General Fusion, has been candid about its recent funding struggles, laying off 25% of its staff last spring while publicly pleading for more cash. This Thursday, it announced a lifeline: a SPAC merger that will provide the company with up to $335 million, if all goes according to plan. Read more about the deal in our Heatmap AM newsletter.
Current conditions: The monster snow storm headed eastward could dump more than a foot of snow on New York City this weekend • An extreme heat wave in Australia is driving temperatures past 104 degrees Fahrenheit • In northwest India, Jammu and Kashmir are bracing for up to 8 inches of snow.
Last month, Fervo Energy raised another $462 million in a Series E round to finance construction of the next-generation geothermal startup’s first major power plant. Pretty soon, retail investors will be able to get in on the hype. On Thursday, Axios reported that the company had filed confidential papers with the Securities and Exchange Commission in preparation for an initial public offering. Fervo’s IPO will be a milestone for the geothermal industry. For years, the business of tapping the Earth’s molten heat for energy has remained relatively small, geographically isolated, and dominated by incumbent players such as Ormat Technologies. But Fervo set off a startup boom when it demonstrated that it could use fracking technology to access hot rocks in places that don’t have the underground reservoirs that conventional geothermal companies rely upon. In yesterday’s newsletter, I told you about how Zanskar, a startup using artificial intelligence to find more conventional resources, and Sage Geosystems, a rival next-generation company to Fervo, had raised a combined $212 million. But as my colleague Matthew Zeitlin wrote in December when Fervo raised its most recent financing round, it’s not yet clear whether the company’s “enhanced” geothermal approach is price competitive. With how quickly things are progressing, we will soon find out.
Fervo isn’t the only big IPO news. General Fusion, the Canadian fusion energy startup TechCrunch describes as “struggling,” announced plans for a $1 billion reverse merger deal to go public on the Nasdaq. The move comes almost exactly a month after President Donald Trump’s social media company, the parent firm of Truth Social, inked a deal to merge with the fusion startup TAE Technologies and create the first publicly-traded fusion company in the U.S. Analysts I spoke to about the deal called it “flabberghasting,” and warned that TAE’s technology represented a more complex and dubious approach to commercializing fusion than that taken by rival companies such as Commonwealth Fusion Systems. Still, the IPO deals highlight the growing excitement over progress on generating power from a technology long mocked as the energy source of tomorrow that always will be. As Heatmap’s Katie Brigham artfully put it in 2024, “it is finally, possibly, almost time for fusion.”
General Motors plans to move manufacturing of the next generation of its Buick Envision SUV from China to the U.S. in two years and end production of the all-electric Chevrolet Bolt. The Detroit auto giant makes just one of its four SUV models in the U.S., leaving the cars vulnerable to Trump’s tariffs. The worst hit was the Envision, which is currently built in China. Starting in 2028, the latest version of the Envision will be produced in Kansas, taking over the assembly line that is currently churning out the Bolt.
It's a blow to GM's electric vehicle line. Chevy just brought back the Bolt in response to high demand after initially canceling production in 2023, because as Andrew Moseman put it in Heatmap, it's “the cheap EV we've needed all along.” While Chevy had always framed the return as a limited run, it was not previously clear how limited that would be.
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The Department of Energy said Thursday its newly rebranded Office of Energy Dominance Finance, formerly the Loan Programs Office, is “restructuring, revising, or eliminating more than $83 billion in Green New Scam loans and conditional commitments.” The move comes after “an exhaustive first-year review” of the $104 billion in principal loan obligations the Biden administration shelled out, including $85 billion the Trump administration accused of being “rushed out the door in the final months after Election Day.” In a statement, Secretary of Energy Chris Wright said the changes are meant to “ensure the responsible investment of taxpayer dollars.” While it’s not yet clear which projects are affected, the agency said the EDF eliminated about $9.5 billion in support for wind and solar projects and redirected that funding to natural gas and nuclear energy. But as Heatmap’s Emily Pontecorvo noted last night, the Energy Department hasn’t yet said which loans are set to be canceled as part of the latest cuts. The announcement may include loans that have already been canceled or restructured.
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If you know anything about surging electricity demand, you’re likely to finger a single culprit: data centers. But worldwide, air conditioning dwarfs data centers as a demand driver. And in California, electric vehicles are on pace to edge out data centers as a bigger driver of peak demand on the grid. That’s according to a new report from the California Energy Commission. Just look at this chart:

As the Golden State tries to get a grip on its electricity system, Representative Ro Khanna, the progressive Silicon Valley congressman often discussed as a potential 2028 presidential candidate, has doubled down on his calls to break up the state’s largest utility. On Thursday, Khanna posted on X that PG&E “should be broken up and owned by customers, not shareholders. They are ripping off Californians by buying off politicians in Sacramento.” The Democrat has been calling for PG&E’s demise since at least 2019, when the utility was on the hook for billions of dollars in damages from a wildfire sparked by its equipment. But the idea hasn’t exactly caught on.
New energy technologies such as batteries, solar panels, and wind turbines are driving demand for minerals and spurring a controversial push for new mines on virgin lands. But a new study by researchers at the University of Queensland’s Sustainable Minerals Institute found that a production boom is already underway at existing mines. The peer-reviewed paper, which is the first comprehensive global analysis of brownfield mining expansion, found that existing mines are growing in size and scale. Just because the mines are already there doesn’t mean the new production doesn’t come with some social cost. Nearly 78% of the 366 mines analyzed in the study “are located in areas facing multiple high-risk socioeconomic conditions, including weak governance, poor corruption control, and limited press freedom,” the study found.
The Department of the Interior has a new coal mascot. On Thursday, the agency posted an animated picture of a cartoonish, rosy-cheeked, chicken nugget-shaped lump of coal clad in a yellow hardhat and construction gear. His name? Coalie. The idea isn’t original. Australia’s coal-mining trade group rolled out an almost identical mascot a few years ago — same anthropomorphic lump of coal, same yellow attire. The only difference? His name was Hector, and he wore glasses.