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On the shifting energy mix, tariff impacts, and carbon capture

Current conditions: Europe just experienced its warmest March since record-keeping began 47 years ago • It’s 105 degrees Fahrenheit in India’s capital Delhi where heat warnings are in effect • The risk of severe flooding remains high across much of the Mississippi and Ohio Valleys.
The severe weather outbreak that has brought tornadoes, extreme rainfall, hail, and flash flooding to states across the central U.S. over the past week has already caused between $80 billion and $90 billion in damages and economic losses, according to a preliminary estimate from AccuWeather. The true toll is likely to be costlier because some areas have yet to report their damages, and the flooding is ongoing. “A rare atmospheric river continually resupplying a firehose of deep tropical moisture into the central U.S., combined with a series of storms traversing the same area in rapid succession, created a ‘perfect storm’ for catastrophic flooding and devastating tornadoes,” said AccuWeather’s chief meteorologist Jonathan Porter. The estimate takes into account damages to buildings and infrastructure, as well as secondary effects like supply chain and shipping disruptions, extended power outages, and travel delays. So far 23 people are known to have died in the storms. “This is the third preliminary estimate for total damage and economic loss that AccuWeather experts have issued so far this year,” the outlet noted in a release, “outpacing the frequency of major, costly weather disasters since AccuWeather began issuing estimates in 2017.”

Low-emission energy sources accounted for 41% of global electricity generation in 2024, up from 39.4% in 2023, according to energy think tank Ember’s annual Global Electricity Review. That includes renewables as well as nuclear. If nuclear is left out of the equation, renewables alone made up 32% of power generation last year. Overall, renewables added a record 858 terawatt hours, nearly 50% more than the previous record set in 2022. Hydro was the largest source of low-carbon power, followed by nuclear. But wind and solar combined overtook hydro last year, while nuclear’s share of the energy mix reached a 45-year low. More solar capacity was installed in 2024 than in any other single year.

The report notes that demand for electricity rose thanks to heat waves and air conditioning use. This resulted in a slight, 1.4% annual increase in fossil-fuel power generation and pushed power-sector emissions to a new all-time high of 14.5 billion metric tons. “Clean electricity generation met 96% of the demand growth not caused by hotter temperatures,” the report said.
President Trump’s new tariffs will have a “limited” effect on the amount of solar components the U.S. imports from Asia because the U.S. already imposes tariffs on these products, according to a report from research firm BMI. That said, the U.S. still relies heavily on imported solar cells, and the new fees are likely to raise costs for domestic manufacturers and developers, which will ultimately be passed on to buyers and could slow solar growth. “Since the U.S.’s manufacturing capacity is insufficient to meet demand for solar, wind, and grid components, we do expect that costs will increase for developers due to the tariffs which will now be imposed upon these components,” BMI wrote.
In other tariff news, the British government is adjusting its 2030 target of ending the sale of new internal combustion engine cars to ease some of the pain from President Trump’s new 25% auto tariffs. Under the U.K.’s new EV mandate, carmakers will be able to sell new hybrids through 2035 (whereas the previous version of the rules banned them by 2030), and gas and diesel vans can also be sold through 2035. The changes also carve out exemptions for luxury supercar brands like McLaren and Aston Martin, which will be allowed to keep selling new ICE vehicles beyond 2030 because, the government says, they produce so few. The goal is to “help ease the transition and give industry more time to prepare.” British Transport Secretary Heidi Alexander insisted the changes have been “carefully calibrated” and their impact on carbon emissions is “negligible.” As The New York Times noted, the U.S. is the largest single-country export market for British cars.
The Environmental Protection Agency has approved Occidental Petroleum’s application to capture and sequester carbon dioxide at its direct air capture facility in Texas, and issued permits that will allow the company to drill and inject the gas more than one mile underground. The Stratos DAC plant is being developed by Occidental subsidiary 1PointFive. As Heatmap’s Katie Brigham has reported, Stratos is designed to remove up to 500,000 metric tons of CO2 annually and set to come online later this year. Its success (or failure) could shape the future of DAC investment at a time when the Trump administration is hollowing out the Department of Energy’s nascent Carbon Dioxide Removal team and casting doubt over the future of the DOE’s $3.5 billion Regional Direct Air Capture Hubs program. While Stratos is not a part of the hubs program, it will use the same technology as Occidental’s South Texas DAC hub.
The Bezos Earth Fund and the Global Methane Hub are launching a $27 million effort to fund research into selectively breeding cattle that emit less methane.
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The cloak-and-dagger approach is turning the business into a bogeyman.
It’s time to call it like it is: Many data center developers seem to be moving too fast to build trust in the communities where they’re siting projects.
One of the chief complaints raised by data center opponents across the country is that companies aren’t transparent about their plans, which often becomes the original sin that makes winning debates over energy or water use near-impossible. In too many cases, towns and cities neighboring a proposed data center won’t know who will wind up using the project, either because a tech giant is behind it and keeping plans secret or a real estate firm refuses to disclose to them which company it’ll be sold to.
Making matters worse, developers large and small are requiring city and county officials to be tight-lipped through non-disclosure agreements. It’s safe to say these secrecy contracts betray a basic sense of public transparency Americans expect from their elected representatives and they become a core problem that lets activists critical of the data center boom fill in gaps for the public. I mean, why trust facts and figures about energy and water if the corporations won’t be up front about their plans?
“When a developer comes in and there’s going to be a project that has a huge impact on a community and the environment – a place they call home – and you’re not getting any kind of answers, you can tell they’re not being transparent with you,” Ginny Marcille-Kerslake, an organizer for Food and Water Watch in Pennsylvania, told me in an interview this week. “There’s an automatic lack of trust there. And then that extends to their own government.”
Let’s break down an example Marcille-Kerslake pointed me to, where the utility Talen Energy is seeking to rezone hundreds of acres of agricultural land in Montour County, Pennsylvania, for industrial facilities. Montour County is already a high risk area for any kind of energy or data center development, ranking in the 86th percentile nationally for withdrawn renewable energy projects (more than 10 solar facilities have been canceled here for various reasons). So it didn’t help when individuals living in the area began questioning if this was for Amazon Web Services, similar to other nearby Talen-powered data center projects in the area?
Officials wouldn’t – or couldn’t – say if the project was for Amazon, in part because one of the county commissioners signed a non-disclosure agreement binding them to silence. Subsequently, a Facebook video from an activist fighting the rezoning went viral, using emails he claimed were obtained through public records requests to declare Amazon “is likely behind the scenes” of the zoning request.
Amazon did not respond to my requests for comment. But this is a very familiar pattern to us now. Heatmap Pro data shows that a lack of transparency consistently ranks in the top five concerns people raise when they oppose data center projects, regardless of whether they are approved or canceled. Heatmap researcher Charlie Clynes explained to me that the issue routinely crops up in the myriad projects he’s tracked, down to the first data center ever logged into the platform – a $100 million proposal by a startup in Hood County, Oregon, that was pulled after a community uproar.
“At a high level, I have seen a lack of transparency become more of an issue.t makes people angry in a very unique way that other issues don’t. Not only will they think a project is going to be bad for a community, but you’re not even telling them, the key stakeholder, what is going on,” Clynes said. “It’s not a matter of, are data centers good or bad necessarily, but whether people feel like they’re being heard and considered. And transparency issues make that much more difficult..”
My interview with Marcille-Kerslake exemplified this situation. Her organization is opposed to the current rapid pace of data center build-out and is supporting opposition in various localities. When we spoke, her arguments felt archetypal and representative of how easily those who fight projects can turn secrecy into a cudgel. After addressing the trust issues with me, she immediately pivoted to saying that those exist because “at the root of it, this lack of transparency to the community” comes from “the fact that what they have planned, people don’t want.”
“The answer isn’t for these developers to come in and be fully transparent in what they want to do, which is what you’d see with other kinds of developments in your community. That doesn’t help them because what they’re building is not wanted.”
I’m not entirely convinced by her point, that the only reason data center developers are staying quiet is because of a likelihood of community opposition. In fairness, the tech sector has long operated with a “move fast, break things” approach, and Silicon Valley companies long worked in privacy in order to closely guard trade secrets in a competitive marketplace. I also know from my previous reporting that before AI, data center developers were simply focused on building projects with easy access to cheap energy.
However, in fairness to opponents, I’m also not convinced the industry is adequately addressing its trust deficit with the public. Last week, I asked Data Center Coalition vice president of state policy Dan Diorio if there was a set of “best practices” that his large data center trade organization is pointing to for community relations and transparency. His answer? People are certainly trying their best as they move quickly to build out infrastructure for AI, but no, there is no standard for such a thing.
“Each developer is different. Each company is different. There’s different sizes, different structures,” he said. “There’s common themes of open and public meetings, sharing information about water use in particular, helping put it in the proper context as well.”
He added: “I wouldn’t categorize that as industry best practice, [but] I think you’re seeing common themes emerge in developments around the country.”
Plus more of the week’s biggest renewable energy fights.
Cole County, Missouri – The Show Me State may be on the precipice of enacting the first state-wide solar moratorium.
Clark County, Ohio – This county has now voted to oppose Invenergy’s Sloopy Solar facility, passing a resolution of disapproval that usually has at least some influence over state regulator decision-making.
Millard County, Utah – Here we have a case of folks upset about solar projects specifically tied to large data centers.
Orange County, California – Compass Energy’s large battery project in San Juan Capistrano has finally died after a yearslong bout with local opposition.
Hillsdale County, Michigan – Here’s a new one: Two county commissioners here are stepping back from any decision on a solar project because they have signed agreements with the developer.
A conversation with Save Our Susquehanna’s Sandy Field.
This week’s conversation is with Sandy Field, leader of the rural Pennsylvania conservation organization Save Our Susquehanna. Field is a climate activist and anti-fossil fuel advocate who has been honored by former vice president Al Gore. Until recently, her primary focus was opposing fracking and plastics manufacturing in her community, which abuts the Susquehanna River. Her focus has shifted lately, however, to the boom in data center development.
I reached out to Field because I’ve been quite interested in better understanding how data centers may be seen by climate-conscious conservation advocates. Our conversation led me to a crucial conclusion: Areas with historic energy development are rife with opposition to new tech infrastructure. It will require legwork for data centers – or renewable energy projects, for that matter – to ever win support in places still reeling from legacies of petroleum pollution.
The following conversation has been lightly edited for clarity.
Given your background, tell me about how you wound up focusing on data centers?
We won a fight against a gas plant in fall of 2023. We started saying, Instead of focusing on what we don’t want, we’re going to start focusing on what we do want. We were focusing on supporting recreational projects in our area, because this is an area where people come to hike and camp and fish. It’s a great place to ride your bike.
Then, all of the sudden, people were saying, What about these data centers?
At first, it seemed benign. It’s like a warehouse, who cares? But we started to learn about the water use concerns, the energy use concerns. We learned about the Amazon one that’s connected to Three Mile Island, which is responsible for turning it back on. We learned about one in Homer, Pennsylvania, where they’re taking a former coal plant and converting it into the largest gas plant in the country in order to power a data center. The people in that area are going to get the pollution from the enormous power plant but none of the power. It started to be clear to us that, again, behind these projects is a push to build out more fracking and gas in Pennsylvania.
From a climate change point of view, this is exactly the wrong perspective. We’re running in the wrong direction. Between water usage, and this energy usage, people are becoming alarmed that the burden will be on us and data centers will be just another boondoggle.
The last thing I’ll say is that there is nothing right now in American politics that is reaching across the aisle. Our communities are coming together. Everybody – Democrats, Republicans – to fight these things.
This is also the only thing I’ve ever worked on that people hate more than plastics.
It sounds like how you learned about these projects was, it began as an anodyne issue but you began to hear about impacts on water and energy use. When I talk to people in the development space, some will call anybody who opposes development NIMBYs. But I’m feeling like this is an oversimplification of the problem here. If you had to identify a principle reason so many people are opposing data centers, what would be the big overarching motive?
I think it seems rushed. People are concerned because it's like a gold rush.
A gas-fired power plant takes five years to build. They’re talking about data centers right now. Where is that power coming from? The whole thing feels like a bubble, and we’re concerned that people are going to invest into communities, and communities will be accepting them only to be left with stranded assets.
When I hear you bring up the principle reason being speed, I hear you. Power plants take years. Mines take years. So do renewable energy projects. Help me get a better understanding though, how much of this is purely the speed –
They’re taking people by surprise.
Take into account where we are. We live by the Susquehanna River, the longest non-navigable river in the world. It doesn’t have a lot of industry on it because it’s too shallow, but we drink from the river and we’ve just gotten it clean. The river was so low this past year that historic structures were beginning to be visible that I’ve never seen, the entire time I have lived here. That was because of a drought.
Now, add to that a couple of data centers pulling millions of gallons of water a day and only putting a portion back in, with who knows what in there. People here are saying that back in the day this river was filled with coal dust, and then we had fracking, so its… enough is enough. Let’s put something into rural communities that will actually benefit us.
The small townships [deciding] don’t know enough about data centers to plan for them. So we’re trying to make sure they’re prepared for managing them. We go to these townships being approached and encourage them to have a protective ordinance that allows them to define parameters for these things. Setbacks, water use rules, things like that.
To your point about NIMBYs – there are a few around here who really are. But there are others who really do just have concerns about how this is a bad idea and we’re rushing in a direction we don’t want to go for our state. They felt this way about fracking, about advanced plastics recycling too, for example. It wasn’t that people didn’t want the projects in their backyards – it’s that they didn’t want them anywhere. Labeling us as NIMBYs or whiners or gripers is unfair.
On that note, I can’t help but notice that these efforts to get protective ordinances on data centers are happening as opponents of renewable energy are doing the same thing. Are you at all concerned that this increased scrutiny towards land use will lead to greater restrictions on renewables alongside data centers?
You’re right that a lot of this is about land use and there are similar arguments about renewable energy. Some of these arguments are being fed by the fossil fuel industry and its allies, and a lot of it is baseless. They’re feeding in concerns about glare and noise and whatever else that don’t even really exist about solar panels.
But it is, yes, often the same people talking about protecting their land. It does have similar elements, especially because of the agricultural land use being proposed in many cases.
We need to meet the concerns about renewable energy head-on. If you talk to people and show them a picture of solar panels with sheep grazing underneath and the land can be conserved for many years, this starts to be a different argument than building a data center for Amazon or someone else that people don’t even like, using the water and all that.