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Attorney General Letitia James leads a group of states suing the administration’s move to buy back two offshore wind leases.

A group of Northeast attorneys general led by New York’s Letitia James is suing the Trump administration for paying TotalEnergies nearly $1 billion to walk away from its two U.S. offshore wind leases.
The lawsuit, filed in the U.S. District Court for the District of Columbia on Tuesday, alleges that the government’s settlement agreement with Total violates the Outer Continental Shelf Lands Act, the statute governing offshore wind, as well as the Judgment Fund Act, which controls the pot of money the federal government uses to pay legal settlements. The other plaintiffs are New Jersey, Connecticut, Maine, Massachusetts, Rhode Island, and Vermont.
“After repeatedly losing in court, this administration cooked up a sham deal to pay a foreign energy company hundreds of millions of taxpayer dollars to abandon offshore wind and invest in oil and gas instead,” James said in a press release. “We are fighting back to stop this illegal agreement that threatens to erase over a thousand union jobs and cheat millions of New Yorkers out of clean, affordable energy.”
On March 23, the Interior Department announced it had reached an agreement with Total to cancel two offshore wind leases — one in the New York area, and one near North Carolina — and refund the $928 million cost back to the company; in exchange, the announcement said, Total would invest an equivalent amount in U.S. oil and gas projects. In a later release, the department said it would pay Total from the Judgment Fund, a permanently appropriated pot of money overseen by the Treasury Department used to settle ongoing or imminent litigation.
According to the signed settlement agreement, the Trump administration said that it would have suspended construction on the lease indefinitely due to national security concerns, after which Total would have claimed breach of contract, but instead, the two parties settled.
James’ lawsuit claims that this does not meet the Judgment Fund’s standard for imminent litigation. “A hypothetical lawsuit to challenge an agency action that had not even been threatened — here, the suspension or cancellation of the Lease — does not constitute actual or imminent litigation under the Judgment Fund Act,” it says.
The lawsuit also contends that there was no actual disagreement between the parties. Both Total and the Trump administration wanted to cancel the leases, it says, citing reporting from Axios in which Total’s CEO asserted that the agreement “came from us — we took the initiative.”
If the parties wanted to cancel the leases, they could have done so legally under the Outer Continental Shelf Lands Act. But the government’s actions violate that statute as well, according to the lawsuit. Proper procedure would have required a hearing to investigate whether continued activity on the lease would cause serious harm to the environment or national security, and whether the advantages of cancelling outweigh those of continuing to honor the lease. The law also requires the administration to notify and coordinate with the governors of affected states, which the Interior Department did not do, the suit argues.
The states that brought the lawsuit allege the terminations will harm their economies, energy grids, and climate goals. New Jersey awarded a contract to one of Total’s offshore wind projects, called Attentive Energy Two, in 2024; the finished development would have provided the state 1.3 gigawatts of power, enough to power about 650,000 homes. On its own, the agreement would have gone a third of the way toward fulfilling a state law passed in 2018 that required New Jersey to procure 3.5 gigawatts of offshore wind energy. In addition to feeding the state’s tight electricity market, in which demand is now outpacing supply, the Attentive Energy Project would have delivered an estimated $3.1 billion in direct, indirect, and induced benefits into New Jersey’s economy.
New York did not have an active contract with any projects under development within the leased areas, but it was anticipating Total bidding into the state’s next round of offshore wind solicitations, according to the lawsuit. The state has many aging power plants nearing retirement, and its grid operator has warned that the New York City area faces a reliability risk without new generation coming online. Total’s project would have provided “critical energy diversity benefits” to the city, the suit says.
The Interior Department disputed the basis for the lawsuit, telling Heatmap that “the only thing blatantly unlawful here was the process by which these offshore wind leases were negotiated and imposed under the Biden administration.” A spokesperson reiterated that “there were serious national security risks that demanded immediate attention,” although did not elaborate on what those risks were. They also emphasized that the settlement agreements were voluntary and were approved by the Department of Justice.
“Attempts to rewrite history now cannot erase the reality of these projects and the damage they could cause,” they said.
Offshore wind advocates, however, applauded the suit. “We commend the Northeast Governors for standing up again against actions that threaten jobs, investment, and the nation's ability to meet growing electricity demand with an affordable and reliable energy source,” Liz Burdock, the president and CEO of the Oceantic Network, said.
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A developer sues an Arkansas paper, plus more of the week’s biggest development fights.
1. Pulaski County, Arkansas – A major utility sued the biggest newspaper in Arkansas over reporting on a data center energy deal. It’s a crucial case to follow.
2. Lackawanna County, Pennsylvania – Speaking of hardcore legal strategies, have you ever heard of a data center developer asking every local official to recuse themselves?
3. Loudon County, Virginia – Data Center Alley is giving us our first real glimpse of what data center legislating could look like if Democrats control at least one chamber of Congress.
4. Lane County, Oregon – The second largest city in Oregon is now turning down data centers, just as the governor starts saying no to anything on state land.
What we’ll be watching for on election night.
It’s almost fall 2026 and you know what means: It’s time to figure out the must-watch midterm races amidst the data center backlash.
I’ve spent the past week pulling together a list of the top five congressional races worth watching as bellwethers for the impacts of the data center backlash in the American electorate. This list has three U.S. House races where Republicans are defending seats, one where a House Democrat is defending their seat, and the Senate race many of you are probably most thinking about anyway. Think of it as a tipsheet.
Before we begin, a crucial theme I picked up reviewing the data: The AI infrastructure backlash will almost assuredly be most painful for sitting House Republicans crucial to deciding the future of the lower chamber of Congress.
Very few House Democrats are defending seats in challenging contests. As I’ll explain, at least one of the elected Democrats that would otherwise be most vulnerable in this year’s election cycle — Rep. Marcy Kaptur in Ohio — has already positioned themselves way out ahead on this issue. This means what we’re left with is simply a long list of incumbent GOP lawmakers with votes supporting data centers that newcomer challengers can call out. My best anecdotal comparison in recent history is anger over Covid-19 school closures helping oust incumbent Democrats in Virginia way back in 2021, but expanded to a national scale.
House races strike a balance between nationalized issues (gas prices, federal AI support) and local fights over land use and nearby resource draws like water or power, so this shouldn’t be a surprise. But it is a pivotal trend to remember as we approach Election Day.
The most important data center-centric race for Congress is a rare case where it’s also the one receiving the most media attention: Will Lawrence, a Democrat, versus Republican CongressmanTom Barrett.
To quickly set the scene, this race is happening in Michigan’s 7th District — an agriculture-heavy area of central Michigan I personally know quite well because of its proximity to the college town of Lansing. The district includes what Heatmap Pro clearly shows are multiple challenging areas for any sort of large-scale AI or energy infrastructure, including both Ingham and Clinton County.
Enter Will Lawrence, a cofounder of the Sunrise Movement, who made data center opposition core to his campaign by backing a federal moratorium in early 2026. It was the first issue he highlighted in primary campaign ads and many credit the stance for his surprise upset victory over establishment favorite and former Navy SEAL Matt Maasdam. This week, Democratic gubernatorial candidate Jocelyn Benson backed a statewide moratorium on new projects if she won. It’s hard to think that would ever happen without Lawrence’s victory.
Lawrence’s incumbent opponent is Rep. Tom Barrett, who over this summer introduced two bills signaling a more aggressive stance on the issue — one that would block federal agencies from overriding local zoning decisions and another banning members of Congress from signing NDAs related to data centers. I do not think these bills will do much on the campaign trail to help him; neither one would actually stop any data centers in Michigan or elsewhere, as both policies address hypothetical cases we’ve not seen before.
Cook Political Report scores this race as a Toss-Up.
In Pennsylvania, you’ll find a race pivotal for control of Congress — and future Republican responses to the data center backlash writ large.
When it comes to the GOP members responding earnestly to the backlash against data centers, you can’t find a better example than Rep. Rob Bresnahan Jr., who represents the Keystone State’s 8th congressional district. This area in Pennsylvania’s northeast corner is filled with traditionally moderate suburbs as well as current and former fossil fuel industry communities. Bresnahan won his seat in the last election cycle, defeating former Democratic Rep. Matt Cartwright, an elected official I best knew as one of the biggest champions in Congress for cleaning up former gas and mine developments areas.
Bresnahan Jr. is running against Paige Cognetti, the Democratic mayor of Scranton, who is running ads comparing data centers to the legacy of unremediated fossil fuel projects. It’s a clear ploy to use data centers as a signal to voters this newly elected Republican could be straying away from what used to be the norm for the area’s representative in the U.S. House.
“Big companies have come before, taken what they wanted, and left us with their mess to clean up. Now its data centers,” states one Cognetti ad released last month.
Unlike other Republicans in Congress facing data center scrutiny, this GOP freshman acted quickly to introduce legislation supporting communities fighting data centers. In June, Bresnahan put forward a bill that would block federal agencies from permitting new data centers if they were rejected by their host local governments and enjoin federal legal action against towns or counties that deny data centers if they met certain standards for the rejection. It’s a far more aggressive stance than Trump’s Ratepayer Protection Pledge and marks one of the most significant anti-data center bills ever introduced into Congress.
Cook Political Report scores this race as a Toss-Up.
Can an incumbent Democrat protect herself in one of the reddest congressional districts in the country by railing against data centers?
Rep. Marcy Kaptur is someone whose profile I know quite well because she was the first member of Congress I ever interviewed back in 2017. For many years, she’s represented a district on the rim of Lake Erie, and she’s long been the top Democrat on the House Energy-Water Appropriations Subcommittee. In her district, she’s best known for portraying herself as a tooth-and-nail fighter for union labor in a blue collar Ohio congressional district often redrawn by the state’s GOP leadership to be harder each and every cycle. Thanks to her policy chops and moderate positions on other issues, she keeps beating the odds every election, kind of like a Democratic answer to Susan Collins.
This year, Kaptur’s seat is one of the most important for Democrats to defend in the midterms to regain control of the lower chamber. She clearly believes her opponent, State Rep. Derrick Merrin, has a potential political liability in a 2017 vote for data center tax breaks in Ohio. So she’s been making great hay of this issue for a while.
“Will our building trades be true partners in economic growth or temporary labor while facing higher utility bills at home?” Kaptur said on the House floor last December, long before the backlash to AI hyperscalers was a national conversation.
Should Kaptur win with this strategy, and if Democrats retake the House, I expect she will suddenly become one of the most important members in Congress on data center policy thanks to her subcommittee slot.
Cook Political Report scores this race as a Toss-Up.
On Election Night this November, I’ll be watching this race most closely to know if it’ll be an early night — and whether the entire data center sector’s in for a world of hurt.
This Richmond-area congressional brawl is between a historically overperforming incumbent in Rob Wittman, a five term Republican elected in the Bush era, and Henrico County prosecutor Shannon Taylor, a Democrat who won her primary earlier this year over a candidate that supported a federal data center moratorium. Taylor is still critical of the data center sector though, focusing on fighting any increased water and energy cost from facility operations.
Wittman has said voters have “legitimate concerns” about data centers and cosponsored the House version of the Ratepayer Protection Act, which would codify Trump’s pledge into law. Asked this week whether he’d support a data center moratorium, Wittman pivoted to the bill he backed instead. “I support putting guardrails on these data centers. Ultimately, these are local decisions and decisions of states,” he told a local ABC affiliate, adding he also wants to see facilities reduce water use. Wittman concluded, “Ultimately, it’ll be a local decision, but yes there is a federal role for that.”
Between their shared skepticism of a national data center moratorium and wanting companies to pay for what they build, there doesn’t seem to be much difference between the two candidates’ positions.. So where’s the contrast?
The difference is in the attack ads. The Democratic Congressional Campaign Committee is making data centers a key part of this contest among many others, calling on allied political action committees to specifically make negative ads in Richmond and Norfolk media markets calling out past support for data center tax breaks. Unlike Wittman, Taylor has no tangible record of past support for these projects like explicit statutory support. So on Election Night, because Virginia closes voting early, this race will be my must-watch contest to know how dire not only Republicans’ chances are but more importantly, the data center sector.
Cook Political Report rates it Lean R, noting Wittman has a history of “overperforming politically.” Abigail Spanberger won the district last year.
I only picked one Senate race for this list, because like Virginia’s 1st, the fortunes of the data center sector in this election cycle clearly ride on the Texas Senate race.
Sure, the Lone Star gubernatorial is just as important. Yes, other Senate races are positioned around data centers, like Sherrod Brown vs. Sen. Jon Husted in Ohio and Abdul El-Sayed vs. Mike Rogers in Michigan. But no other contest is as clear of a bellwether for the entire midterm election because Texas is the data center destination in the nation.
On policy, Talarico is running on the mean average anti-data center stance: requiring companies to pay for what they need. It’s fairly boilerplate. Meanwhile, Paxton’s plan is a hodgepodge: it leans heavily on support for Gov. Greg Abbott’s clampdown-in-progress on the industry. He also calls for banning Chinese technology from being used in American data centers or to power them and says he’d support legislation speeding up permits for power to AI hyperscalers.
At the Republican Party convention in Texas this week, Paxton voiced support in an interview with Bloomberg TV for Abbott slowing down development in the state. He also said the country needed data centers because “if we don’t have data centers, we’re going to have trouble with China.” Asked whether he’d support legislation in the Senate that would put “restrictions” on data center development, Paxton offered a confusing answer that refused to say yes or no.
“There’s no bill, obviously, so it’s a hypothe– that’s so — I don’t know what the bill’s going to look like. You could have a data center [bill] drafted one thousand different ways. I would have to look at the bill and then I’d go back to my constituents and say hey, does this address what you’re worried about?” he said.
There’s a good reason reporters are asking. Earlier this year, a Washington Star report highlighted that Hood County requested Ken Paxton as attorney general intervene against a data center development and he did not respond. The issue became a serious campaign spat this past week, too, with Talarico telling CBS News he “just ghosted” the county.
Unlike Virginia, we haven’t seen the data center attack ads pop up… yet. If what’s happening elsewhere in the country is a prologue, I expect them to. Cook Political Report rates this race a Toss-Up and recently polling from their outfit found collapsing GOP support amongst Hispanic voters in the state.
Current conditions: August 2026 has tied with July 2023 as the hottest month the world has ever recorded • The Pacific’s hurricane churn continues as Tropical Storm Norbert strengthens off the coast of Baja California • Temperatures are nearing 90 degrees Fahrenheit in Samarkand, Uzbekistan, where Bukharian Jews are just now — as we hit publish on this newsletter — ringing in Rosh Hashanah, the Jewish new year, at the grand 135-year-old Gumbaz Synagogue.

The chief benchmark for crude oil produced in the United States surpassed $100 per barrel Thursday as Iran-backed Houthi rebels seized control of a key port in the Red Sea, intensifying Tehran’s effort to loosen Washington’s grip on the region’s key shipping lanes. West Texas Intermediate closed at just below $104 per barrel, while Europe’s Brent crude soared more than 6% to about $108. Murban crude out of the United Arab Emirates hiked 5% to nearly $123. The surge came as the Iran War heats up, with The Wall Street Journal breaking news that Tehran is once again manufacturing ballistic missiles to make good on its promise to retake at least partial control of another key waterway, the Strait of Hormuz. On Thursday morning, the Houthis ousted Yemeni government forces from the port city of Mokha, giving the militant army a better position from which to attack ships passing through the Red Sea. By evening, satellite images began circulating of smoke billowing from the East-West Pipeline that spans Saudi Arabia, which serves as the kingdom’s primary means of routing oil around the conflict zone at the Strait of Hormuz. If U.S. crude prices remain lower than the other global benchmarks, it’s because America is on track for record production this year, according to a new analysis by the U.S. Energy Information Administration. But that has done little to prevent diesel from hitting $6 per gallon for the first time in U.S. history, at what my colleague Matthew Zeitlin called “the worst time.”
Oddly enough, this may be the first perfect time for the Trump administration to cut an oil deal that can shore up the Strategic Petroleum Reserve. Back in March, the U.S. agreed to release 172 million barrels to ease soaring oil prices after the war began. Some 39 million barrels have not yet been delivered. If the Department of Energy sells the barrels through an emergency drawdown instead of a trade, as it did with previous releases, and simultaneously agrees to buy back oil at the lower prices the futures market is trading at now, the Trump administration can bring in an even bigger profit. That profit can in turn go to the $230 million backlog of physical repairs needed on the actual infrastructure that stores the U.S. crude reserve. That’s the proposal pitched in a new policy memo out yesterday from the think tank Employ America. “There’s a real opportunity where, if we’re going to have releases, you can yield this profit in dollar terms that could actually pay for a lot of upgrades that the asset needs,” Arnab Datta, Employ America’s managing director of policy implementation, told me by phone last night. “This could be enough to permanently build the SPR to be fully equipped for the country for the coming decades.”
The South Korean government is weighing a $120 billion investment in the U.S. that will include building eight nuclear reactors as part of a trade pact set to be unveiled later this month. At least for the first four units, Korea JoongAng Daily reported, the Koreans would build two and the U.S. would finance the others. The exact technology is up for debate. Citing unnamed government sources in Seoul, the newspaper said South Korea wants to build a pair of APR1400s, the Korean reactor that U.S. developer Westinghouse accused of ripping off its AP1000 design. As a result of a settlement between Westinghouse and South Korea’s state nuclear company, the Koreans can’t build more APR1400s in key markets such as Europe or North America. But Seoul appears to believe there could be an exception for a domestic project in the U.S. The two U.S.-backed units, as my colleague Robinson Meyer’s reporting from earlier this year suggests, would likely be AP1000s.
China, meanwhile, just unveiled the new version of its AP1000 rival, the Hualong One. At an industry conference in Shenzhen this week, the state-owned China General Nuclear revealed an upgraded reactor that Beijing explicitly plans to start shopping around for exports, marking one of the clearest signals yet that the People’s Republic is getting into selling atomic power plants overseas. So far, China has only exported its nuclear technology to Pakistan, leaving Russia to dominate the market. “The upgraded reactor design not only cements China’s self-reliance in cutting-edge nuclear engineering, but also dramatically elevates the commercial appeal of Chinese nuclear solutions in international tenders,” Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University, told the state-controlled China Daily. “By driving down full lifecycle capital and maintenance costs while raising safety standards, it positions China as an increasingly indispensable partner in the global clean energy transition.”
You may recall from yesterday’s newsletter that Google has inked a first-of-a-kind deal with the Finnish utility Fortum to buy up to half the power produced at a major nuclear station, helping to finance its life extension through 2050. While power purchase agreements are common in the U.S., this type of corporate deal is new for Europe. Not everyone is pleased. The agreement is part of a broader $15 billion investment the tech giant is making into data center infrastructure in the Nordic nation. “A national permitting system for new data center investments would be needed. At the moment, no one is really looking after the overall picture,” Centre Party leader Antti Kaikkonen, whose centrist party is the second-largest opposition group in parliament in Helsinki, told Reuters.
In France, meanwhile, the national utility EDF has found “no major technical obstacles” to extending the operating lives of 32 reactors beyond 60 years, according to the European energy publication Montel.
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Brazil is rich in oil and pumping record volumes of the stuff. Wind and solar are expanding rapidly. And even the country’s tiny nuclear sector is eyeing an expansion as part of a bigger push into mining. But hydroelectricity is the backbone of the Brazilian grid. Unlike the U.S., where hydro faces drought and permitting problems, Brazil’s sector is expanding and China wants a piece of the action. Spic Brasil, a subsidiary of China’s State Power Investment Corporation, signed a $272 million deal Thursday to expand the São Simão Dam in north São Paulo state, Reuters reported. The upgrade will add 310 megawatts of power to the plant by 2030.
Six months after closing a $140 million Series B, Heron Power has unveiled a $60 million credit line backed by J.P Morgan and TriplePoint Capital. The startup founded by former Tesla executive Drew Baglino is focused on next-generation transformers and other grid equipment. The company is now adding Zach Kirkhorn, Tesla’s former chief financial officer, to its board of directors. “A strong balance sheet and bench of advisors is key as we move from engineering to scale,” Baglino said in a press release. In June, as I told you at the time, Heron made a manufacturing deal with the South Korean giant LG Energy Solution.
The most abundant element in the universe is becoming an increasingly abundant clean fuel. The global capacity for clean hydrogen production has so far grown to 1.7 million metric tons per year in 2026, and is on track to more than double next year as new projects come online. That’s according to the Hydrogen Council, the world’s largest trade group for the fuel. But Hydrogen Insight noted that demand by 2030 “remains uncertain.”