You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
The administration argued in the name of national defense — but Orsted had receipts.

When the Trump administration ordered work on Orsted’s Revolution Wind offshore wind project to shut down in late August, it cited national security concerns as the reason for the delay.
Within weeks, a federal judge had lifted the stop work order, allowing construction to proceed.
What happened in between matters. In its rush to stop a wind project, the Trump administration exposed the first cracks in its anti-wind policy agenda — a loss that may embolden companies targeted by the crackdown on renewable energy development to fight back.
Orsted, the Danish wind giant, was more than halfway done building Revolution Wind by August 22, the day the Bureau of Ocean Energy Management ordered an immediate stop to construction. In a one-page letter explaining the order, the agency dedicated a single paragraph to the rationale behind its decision: “BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas,” it said.
Orsted filed a lawsuit against the U.S. government within days and asked for a preliminary injunction against the stop-work order. The Trump administration had acted arbitrarily when it halted construction on Revolution Wind, the company argued, a violation of the Administrative Procedures Act, which forces the government to have at least some sensible reason for its decision-making.
There were urgent financial stakes to the court’s decision, the company said. On top of strict timelines for completing the project that were laid out in power purchase agreements, the cable installation company working on Revolution Wind has just a brief window before it is booked for other projects through mid-2028. Unless the judge acted quickly, according to Orsted, Revolution Wind could face “project cancellation and termination of the enterprise,” at an estimated cost of more than $1 billion.
After Orsted filed its suit, the attorneys general of Connecticut and Rhode Island — two of the three states designated to receive electricity from Revolution Wind — soon followed course. The Trump administration responded by doubling down on its claims related to national defense. Revolution Wind, officials argued, would negatively impact radar detection and result in dangerous electromagnetic emissions. They also asserted that Defense Department officials were overruled or ignored when they raised concerns about this matter in the review process for the project, which received its final permits in 2023. (It’s worth noting the Trump administration’s legal filings refer to the military as the Department of War, or DOW.)
The Department of the Interior’s acting assistant secretary for land and minerals management, Adam Suess, told the court on September 12 in a sworn declaration that Revolution Wind had not fully addressed a host of concerns. Suess elaborated on the stop work order, asserting that it concerned the project’s “continued inability to reach certain mitigation agreements” with the military and the National Oceanic and Atmospheric Administration. Suess stated Revolution Wind was not in full compliance with the terms of its construction and operations plan, which are subject to government approval. He also said there were outstanding issues with Revolution Wind’s coordination with military operators at sea, and that there was still “risk from distributed optical fiber sensing and acoustic monitoring equipment.
“The Department has been in touch with NOAA and the DOW to gather more information,” the filing said, somewhat cryptically.
Suess also acknowledged that the Trump administration is reconsidering its prior green lights for Revolution Wind, including its approval of the construction and operations plan, linking this to a broader all-of-government review of the offshore wind industry Trump ordered on Day One via executive order.
In response, Orsted called the government’s bluff. The company submitted sworn declarations from top company officials who had worked on Revolution Wind, attesting to the fact that before Trump came into office, the military and NOAA were saying everything looked A-OK.
“Mr. Suess’ declaration makes new allegations against Revolution Wind that were not mentioned in the stop work order,” Orsted’s attorneys wrote in their reply. “These new allegations are factually inaccurate and controverted by Revolution Wind’s compliance with project requirements.”
One of Orsted’s declarations was from Melanie Gearon, the company’s head of northeast permitting. Suess had claimed that Revolution Wind was far from reaching a critical agreement with NOAA’s Fisheries division, known as the National Marine Fisheries Service, to mitigate the effects of sea surveys on fishing vessels. But Gearon painted a completely different picture, detailing years of negotiations with NOAA and BOEM about how to handle the surveys.
These talks had apparently continued months into the Trump administration. Orsted submitted an email from BOEM to the company dated July 9, in which an official explicitly says that agency staff were discussing scenarios where Orsted could just “state that they are continuing to work with [the National Marine Fisheries Service] on a Survey Mitigation agreement, which could still be submitted at a later date.” Gearon said the company had received “updated cost modeling” from the agency as recently as September 9, days before Suess’ comments were submitted in court.
Then came the comments from Orsted’s head of marine affairs, Edward LeBlanc, who served in the military for decades and worked on offshore energy oversight. He told the court that the Navy had never once raised any issues with the project’s export cable and that as recently as July 2025, no military officials had expressed lingering concerns about electromagnetic emissions, vessel collisions or other potential national security problems.
“To date, Revolution Wind has never received a notice or any indication that it has failed to coordinate with DOD regarding its offshore activities, or that the U.S. Navy or DOD has any concerns with the ongoing coordination,” LeBlanc stated.
It was after this filing that the justice overseeing the case, U.S. District Judge Royce Lamberth, approved the preliminary injunction and lifted the stop-work order.
As long as offshore wind has existed there has been tension with the U.S. military over use of the sea, and it is true that turbines could hinder radar detection.
In 2011, the Defense Department established a “clearinghouse” to resolve any potential issues with ocean energy development of any kind, whether oil, gas, or wind power. The clearinghouse reviews more than 5,000 projects every year, and its activities include regular give and take with the Interior Department and Federal Aviation Administration. One of the many pieces of evidence Orsted submitted in the Revolution Wind case was a December 2024 letter from the clearinghouse stating the project “would not have adverse impacts to DOD missions in the area.”
Josh Kaplowitz, an environmental attorney who represents renewable energy companies including offshore wind developers, and who previously worked in the Interior Department solicitor’s office, told me: “There is not a single situation I am aware of where the Defense Department ever requested something and the approving agency said, ‘No, we’re going to do something else.’”
“There are some problems with coming in after the fact and coming up with post hoc national security rationalizations when the process of review was so rigorous,” Kaplowitz said.
Independent analysis has also cleared the military’s consultation with offshore wind permitting agencies of having any serious issues.
Earlier this year the Government Accountability Office — a quasi-independent watchdog under the control of Congress — released a detailed review of the offshore wind industry’s federal permitting process. The review was requested by one of the sector’s biggest adversaries in Congress, Representative Chris Smith of New Jersey, who has been heavily involved in fighting offshore wind development in his home state.
Smith, a Republican, ultimately celebrated the review’s publication because it pointed out certain ways offshore wind could impact radar detection and military readiness. In his public statements, however, the lawmaker left out a key detail of the report — that it raised no issues with interactions between the military and offices involved in greenlighting offshore wind projects. In fact, it went into great detail on the lengths researchers and government officials had gone toward solving these potential problems.
“We didn’t have any recommendations there,” Frank Russo, director of GAO’s natural resources department, told me in an interview. “It seemed like coordination was going well, that DOD was satisfied with what was going on, and if there were concerns they could be mitigated.”
Russo said that Defense officials had for years been involved in offshore wind leasing, meaning that military staff from the Navy and Coast Guard had already weighed in on potential safety and readiness problems before companies even knew where they were allowed to build, and certainly prior to the project-specific permitting stage.
“At the very start of it, they know where their main concerns are,” Russo said of the Defense Department’s role in offshore wind development.
The Interior Department normally declines to comment on pending litigation. But I still wanted to ask Interior to comment on the assertions from Russo that the Interior Department and military were properly handling the security implications of offshore wind. It felt especially important to ask them about this because Interior Secretary Doug Burgum last month explained the Revolution Wind stop work order on national TV by claiming radar interference would leave the country vulnerable to “swarm attacks” from underwater drones.
Tory Peabody, a Bureau of Ocean Energy Management spokesperson, provided the following statement to Heatmap: “As a result of the court’s decision, Revolution Wind will be able to resume construction as BOEM continues its investigation into possible impacts by the project to national security and prevention of other uses on the Outer Continental Shelf. The Department of the Interior remains committed to ensuring that prior decisions are legally and factually sound.”
Editor’s note: This story has been updated to include a statement from BOEM, and to remove an errant “not” in the second-to-last paragraph.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
On Thea Energy’s $100 million Series B, plus more of the week’s big money moves.
Nuclear is once again a dominant theme this week, with fusion startup Thea Energy landing a $100 million Series B that will help it expand its magnet manufacturing capabilities. While $100 million is nothing to scoff at, it somehow sounds modest alongside some of this year’s other deals, which include a $450 million Series A for Inertia Enterprises and $240 million for Shine Technologies. This week also brought the news that small modular reactor startup Newcleo plans to go public via SPAC later this year, bringing to mind the exuberance of the 2021 SPAC boom, in a deal expected to net a cool $429 million.
Elsewhere, gridtech company Utilidata raised fresh capital after (surprise!) pivoting to the data center market, while a standalone battery storage developer and operator is betting there’s still plenty of money to be made in the increasingly crowded ERCOT market.
Thea Energy officially joined the growing ranks of fusion companies to surpass $100 million in total funding this week, raising a $100 million Series B round led by the U.S. Innovative Technology Fund to scale its magnet manufacturing operations as it targets a demonstration reactor by 2030. Thea is a part of the Department of Energy’s Milestone-Based Fusion Development Program, which seeks to accelerate efforts for commercial fusion power. In January, the DOE certified Thea’s preconceptual pilot plant design, making it the first of the program’s eight awardees — who will split $46 million in federal funding — to see its reactor architecture validated.
Unlike many top-funded fusion startups, which are building donut-shaped tokamak reactors, Thea Energy is betting on a stellarator design. Traditional stellarators resemble a helical tokamak, which require manufacturing and installing dozens of huge, twisted magnets, but Thea’s approach deviates from the norm. Instead, it relies on hundreds of small, planar magnets arranged in the more familiar donut-shaped configuration, which the company’s artificial intelligence software controls individually. That enables Thea to create the same complex magnetic field within a far simpler and more manufacturable shell.
Thea plans to use the new capital to build a second facility in New Jersey to complement its existing lab and to double its headcount as it seeks a site for its demo reactor later this year. The startup is aiming to bring its subsequent commercial pilot online by 2034, on par with the timeline laid out by fusion industry leader Commonwealth Fusion Systems. According to Gaetano Crupi, USIT founder and billionaire investor Thomas Tull “believes the stellarator is the right architecture for commercial fusion, and Thea Energy is the company that makes it commercially viable.” As Crupi put it in a press release, that’s because “Thea Energy’s breakthroughs shift complexity from precision mechanical fabrication to software-defined controls.”
Newcleo is the latest small modular reactor startup seeking a quick pathway to the public markets via a SPAC merger, announcing plans to list on the Nasdaq in the second half of the year after merging with a blank-check firm. The deal values the European fuel and reactor developer at $2.4 million, and is expected to deliver about $429 million in fresh capital. It comes just months after Newcleo raised $88 million in a growth financing round as the company expands into the U.S. market while continuing to fund projects across Europe.
Newcleo stands out in the crowded SMR field through its fuel and cooling strategy. It plans to run its 200-megawatt reactors on recycled fuel made from nuclear waste products like recovered plutonium and depleted uranium, and cool its reactors with liquid lead rather than water. Because liquid lead has such a high boiling point, lead-cooled reactors can operate at atmospheric pressure, reducing the need for the complex, high-pressure systems used in conventional nuclear plants and potentially improving safety along the way.
The company has already raised over $760 million to date, and CEO Stefano Buono told the Wall Street Journal that the pending SPAC could carry it through 2028 or 2029. Even that won’t be enough, however, for Newcleo to reach its target of opening a fuel factory by 2031 and bringing a commercial reactor online the following year. Not to mention that SPACs — a once rare go-to-market strategy — have a checkered history in the SMR industry. After NuScale went public via SPAC in 2022, its flagship project collapsed, taking its stock down with it and underscoring the risks that pre-revenue companies face when their early failures unfold in the public markets. On the other hand, shares of Sam Altman-backed startup Oklo’s have surged since it went public via SPAC in 2024, reaching a market cap over $11 billion, though it also has yet to build a reactor.
Newcleo’s capital push may also be tied to its strategic partnership with Oklo, as it has preliminary plans to invest up to $2 billion to develop advanced nuclear fuel facilities in the U.S. in partnership with the SMR pioneer. Earlier this week, the DOE selected Oklo — and by extension, Newcleo — to enter “advanced negotiations” to receive surplus weapons-grade plutonium for use in reactor fuel.
What’s that I hear? Another climate tech company has pivoted to the data center market? While Utilidata — an artificial intelligence-powered gridtech company — initially set out to give utilities granular insight into household-level electricity usage and grid data, it’s now raised a $40 million extension round to accelerate its shift into the data center market. As I wrote following last year’s initial $60 million tranche of Series C funding, Utilidata initially set out to get its hardware module inside residential smart meters — which it managed to do at pilot scale — to enable faster fault detection and eventually even automate load management at the household level.
Now, Utilidata is taking this same principle and applying it to the booming data center market, where so many climate tech companies are finding their first customers. The company developed its AI platform in collaboration with Nvidia, installing its modules on server racks to help data centers optimize power allocation across its facility. The company says it measures power consumption a million times per second, such that if usage on one rack is low, it can reroute electricity to parts of the data center that need it. Much like electric grids, data centers also overbuild their capacity to ensure they can handle sudden spikes in demand or hardware failures. Utilidata wants to tap into that headroom by managing power flow in real time.
Utilidata’s first commercial data center deployment is set to go live next month in Montreal in partnership with European AI cloud provider NexGen Cloud, with the startup targeting a 50% increase in the data center’s usable processing power. It also plans to use this latest funding to increase headcount by 25% this year as it builds out operations at its new Ann Arbor headquarters, which opened in February.
In some later-stage funding news, battery energy storage developer, owner, and operator Goshe Energy Storage just secured up to $40 million in strategic financing from S2G investments. As I wrote last week, S2G recently raised a $1 billion fund aimed at helping growth-stage companies commercialize, though this latest commitment actually comes from a different arm of the firm — its Special Opportunities team. This division focuses on non-dilutive financing, in this case providing Goshe with a HoldCo loan backed by the company’s portfolio of energy storage projects. Rather than lending to a specific project, a HoldCo loan gives Goshe flexible capital that can be used to fund its broader growth.
Founded in 2022, Goshe specializes in acquiring late-stage battery storage projects and getting them over the finish line by securing capital and managing the construction process into commercial operations. Thus far, all of its announced projects are in Texas’ ERCOT electricity market. Alongside this financing announcement, Goshe said that its first project — a 100-megawatt battery storage plant in Bexar County, Texas — is now fully operational after securing $288 million in project financing. The company also expects to bring its second project, a 180-megawatt storage facility, online in the following few months, with two additional ERCOT projects slated to begin construction later this year.
This funding is the latest sign that infrastructure investors have grown comfortable backing battery energy storage projects, with a record 24.3 gigawatts of new battery storage capacity projected to come online in the U.S. this year alone. The wholesale ERCOT market, however, is no longer the guaranteed moneymaker that it was just a few years ago. Between January 2024 and January 2026, ERCOT more than tripled its battery storage capacity, driving battery revenues down as the market has become increasingly crowded. In this landscape, there may be a growing number of stranded projects for Goshe to acquire, though it’ll also have to be increasingly selective.
The American climate movement is beginning to look a lot like AI doomers versus the techno-optimists. It’s a dynamic that is winning local bans – and very little else for now.
On one side, you’ve got the left-leaning insurgent grassroots movement against data centers. In many cases this push is in the name of climate action and environmental justice, with activists citing the risks of pollution from gas-fired power and the potential for strain on existing electricity supplies. But in many, many other cases, this movement is decidedly not about climate action; instead it’s a movement addressing everything from energy prices and power over large corporations to AI use generally.
Or, perhaps the anti-data center movement’s big tent is best summarized in this quote from comedian and activist Ilana Glazer: “The thing that is genuinely waiting for us on the other side of AI and data centers is the collective.”
On the other end of the spectrum, you have a raft of data center-curious centrists, liberals, and, for lack of a better term, capitalists. This diametrically oppositional political force wants to ensure data centers continue being built as states and the federal government figure out how to make policy surrounding them. Yes, they want regulations, but they’ll have to qualify even supporting the idea of a single full state – any state – pausing data centers.
“I tend to find myself in the middle of all of this AI and data center policy, because I don’t think a heavy-handed approach in either direction is smart or productive,” said Tre Easton, vice president of public affairs for the Searchlight Institute, a policy think tank geared toward pushing Democrats into positions more broadly popular in the general electorate. “If you’re doing moratoria in one state and Meta says, okay, fine, they’ll go to a different state where they’ll run roughshod.” He added: “This buildout is happening. Let’s just make the rules. Put out rules of what this should look like.”
I spent weeks talking to activists fighting data centers to better understand their end goals. Right now what folks want to talk about most is moratoria, until industry-specific regulation is in place governing all things energy, water, noise, and labor.
“Our motto is ban, legislate, regulate,” said Ben Dziobek, founder of Climate Revolution Action Network, which is fighting data center expansion in New Jersey. Dziobek’s organization is one of roughly five dozen in the Garden State that have called on newly-elected Democratic Gov. Mikie Sherill to institute a moratorium on data centers, including state representatives from The Nature Conservancy and ACLU.
When I asked Dziobek what he’d like to see after a moratorium, the answer was clear: he wants to see Big Tech pay for the energy transition. “It would be beneficial if we could get companies who are using more load than entire states to build out the clean energy future. Someone’s gotta pay for this. The largest companies in the world have to come in.”
Undoubtedly this movement is increasingly influential and rooted in a now bipartisan concern about data centers founded in valid concerns about data center impacts and the rise of AI. But at least right now, In New Jersey, and so many other Democrat-controlled states, this movement has won little ground outside the local level and no statewide Democratic leader (e.g. governor) has made a data center moratorium their raison d'être. Neither have I seen the push for a moratorium pick up steam in any state known as a deep blue bastion for climate policy. Its greatest achievements by the numbers are the cancellation rate of projects that have faced local pushback (37%, according to Heatmap Pro), the city-wide moratoria in large left-leaning bastions like Denver, and the sheer existence of a federal data center moratorium bill led by progressive celebrities like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.
In fact, what I am seeing is Democratic statewide leaders rejecting efforts to curtail their development or regulate energy and water usage. In California last year, Gov. Gavin Newsom vetoed a bill requiring data center developers to report their water use. In New York, Gov. Kathy Hochul has so far shrugged off a push for her to back a three-year moratorium on new data centers. In Massachusetts, Gov. Maura Healey supports continuing to foster the state’s data center buildout and the state is preserving its data center sales tax exemption at a time when GOP leaders in other states want to repeal similar subsidies. Colorado legislators abandoned a push to regulate data centers earlier this month, after Washington state did the same.
Perhaps infamously in Maine, the Democrat-led state legislature nearly enacted a two-year moratorium on data center development only to be vetoed by Gov. Janet Mills. Democrats then failed to override the veto.
Some Democratic leaders are taking up the light-touch approach. On Wednesday, Pennsylvania Gov. Josh Shapiro released long-awaited principles for data center developers seeking fast-track permitting processes with state agencies. Under these policies, companies can get permitted more quickly if they abide by a number of energy, water, and labor standards.
On a granular level, even this policy quietly represented a disappointment for climate activists. One of the principles called for data centers to get at least one third of their power from “clean” sources by 2035 – which sounds nice until you realize Shapiro only two years ago was calling for utilities to get at least half of their electricity from carbon-free sources by then. Food & Water Watch, a national group calling for country-wide data center moratoria, blasted a press release going after Shapiro to the media after the principles were released: “[This] is a naive effort to placate widespread data center opposition. It won’t work.”
For climate activists, the best case scenario right now may be blue states taking up bills to regulate the sector as opposed to a blanket moratorium, where the push for a pause functions as leverage. Often these bills are focused on energy costs for consumers, not environmental protection, like in Oregon where last year legislators enacted a measure requiring data center companies to pay for their share of electricity demand. In Vermont this week, the state legislature passed a similar bipartisan data center bill focused on energy affordability, with some restrictions on fossil fuel generation. (Republican Gov. Phil Scott is expected to sign it.)
Indeed, the climate movement’s smartest play could be to push legislation requiring facilities not only pay for their power but ensure it is zero-carbon emissions. So far, Democrat-led bills that would accomplish this goal gained steam this year in other states but struggled to become law before the end of the legislative session too (Washington, for example).
In Illinois, the bill is known as the POWER Act, but despite lots of Democratic support behind it, it’s languishing in committee limbo ahead of the end of legislative session this week. One can imagine Illinois Gov. J.B. Pritzker getting a bill like the POWER Act into law and then running for president as The Guy Who Made Data Centers Cleaner. Heaven knows that’s why folks like Hannah Flath, climate communications manager for the Illinois Environmental Council, are so bullish on the bill. “I think it’ll eventually become law. Just not this session.”
I asked Flath why her organization was so focused on this bill as opposed to a data center moratorium. “We just don’t think it is politically feasible. Especially given how attractive these things are to our governor and some state lawmakers,” she said. “Currently, I view climate work as harm reduction work. This is perhaps a cynical view to have but that’s unfortunately where we’re at. How can we ensure changes happening in the world bring more benefits than they do harms?”
But Flath said that as a push for moratoria grows, it provides pressure on state policymakers to act: “What we’re offering state legislators now is a middle ground solution.”
I suppose for now, we’ll have to see if this side can come together on any solution – let alone a middle ground.
And more of the week’s top news around development fights.
1. Jefferson County, Alabama – A law firm is alleging that police in the city of Birmingham retaliated against a woman for suing developers of a data center. It might just be a wake-up call for data center developers.
2. Mason County, Kentucky – This county is the site of yet another eminent domain debacle and I suggest you pay attention to it because it’s now represented by an outgoing congressman with nothing left to lose: Thomas Massie.
3. Montgomery County, Missouri – A Google data center project celebrated by the White House is facing harsh local backlash.
4. Iron County, Utah – Yet another county is banning data centers and solar energy.
5. Oconto County, Wisconsin – At least one developer is definitely thanking their lucky stars for state primacy over renewable permitting in the Badger State.