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Plants are marching north. Native gardening will never be the same.

Thirteen miles isn’t very far: roughly the length of Manhattan or the distance you run in a half marathon. On a freeway, it takes less than 15 minutes to drive.
Multiply 13 by 10, though, and it becomes 130 miles — more than the width of the state of Connecticut. Move the U.S. border 130 miles north, and Whistler Blackcomb becomes an American ski resort; move it south, and Tijuana is the new Los Angeles. If you started walking, it would take you 35 straight hours to cover the distance; if you called an Uber, you’d be looking at a $450 ride.
The temperature regions that determine the local viability of different plants, called plant hardiness zones, are believed to be slipping north at a rate of about 13.3 miles per decade — not a number that sounds especially alarming, but one that will, over a century, add up to dramatically reshape the regional flora of the United States. In addition to being yet another depressing climate statistic, though, that number is also generating a lot of headaches in the surprisingly combustible world of native gardening.
It’s been 16 years (or approximately 21 northward miles) since Douglas Tallamy’s warning in his book Bringing Nature Home that “unless we restore native plants to our suburban ecosystems, the future of biodiversity in the United States is dim.” Though we may still be far from achieving his long-term goal of a “homegrown national park,” in which Americans convert half their yard space to native gardens, Tallamy’s teachings remain hugely influential in gardening and conservation circles (42 states have their own specialized native plant societies promoting these goals).
Tallamy insists that “all plants are not created equal, particularly in their ability to support wildlife.” If we’re to sustain the remaining biodiversity in the U.S., it is essential to feed insects — and in turn, the birds that eat those insects — the foods they’ve evolved to eat. If a plant isn’t native to these ecosystems, then it isn’t worth planting or sustaining. Often, says Tallamy, doing so is actively detrimental to biodiversity goals.
But what even is a native plant in this obviously shifting world? Already, New York City is considered subtropical, capable even of supporting certain hardy palms; by 2040, Seattle could be in the same hardiness zone that central Florida, New Orleans, and parts of Texas are in today. Researchers have seen plants native to the South slowly pushing their ranges north.
Native plants are frequently the species under the most stress from the new weather patterns in their historic ranges. The state tree of Washington, the Western hemlock, for example, is especially susceptible to drought and is struggling to survive in a drier Pacific Northwest. “We’ve found a lot of mortality of trees that should be in the prime in their life,” explained Raymond Larson, an associate director and curator at the University of Washington Botanic Gardens and a contributor to Great Plant Picks, a viability resource for Pacific Northwest gardeners.
As a result, many horticulturalists with an eye on the next century are actively exploring — and recommending — plants that are explicitly not native. Axios Seattle recently published a list of trees that Pete Smith, a program director at the Arbor Day Foundation, believes will be able to tolerate the next 50 to 100 years in the region, and it notably included the Japanese pagoda tree; the pawpaw, a native of the East Coast; and the ginkgo, which is “incredibly tough, very long-lived, and great at tolerating urban stresses” — but an exotic from China that is particularly reviled by Tallamy.
“What honestly most gardeners — many gardeners, anyway — have kind of lost track of is what the word ‘native’ means,” Smith explained to me when I followed up to ask about the globe-spanning range of his recommendations. “It is presumptuous, even, to talk about native plants as if 1492 was some magic date that talks about what is and was native to this continent.”
“Native” doesn’t have a hard and fast definition. In Bringing Nature Home, Tallamy writes that a true native is a plant that interacts “with the community that historically helped shape it,” but he also warns against using too small a timescale when making these determinations: “[A] history measured in centuries is the tiniest drop in the proverbial bucket of evolutionary time.” Native plant purists, Smith added, will argue that “the only quality tree is a tree that was grown from a seed from right underneath the tree that bore that seed. Isn’t that a wonderful ideal? [But] it’s not practical.”
Some native plant proponents have allowed for species that are retreating north (or up) on their own volition since these changes happen slowly and food-chain communities can relocate with them. A number of Southern species in the United States got there in the first place by being pushed down during the last ice age, and have been reclaiming prehistoric ranges as the cold has receded over the last 10,000 years. But ancient forests don’t appear to have migrated as complete ecosystems during these upheavals; it was a race of every-species-for-itself. “There’s a lot more interchangeability among members of an ecosystem than people had thought,” David Jablonski, a paleontologist, told the Smithsonian.
There is also the problem that the climactic zones are moving faster than trees can follow. “The average forest migrates at a rate of roughly 1,640 feet each year,” Wired has written — that is, about three miles in a decade. In order “to outrun climate change,” trees would need to book it north at a rate of “approximately 9,800 to 16,000 feet” a year, or about 10 times as fast. Plenty of foresters aren’t waiting around for that to happen and are seriously exploring the controversial idea of human-assisted migration.
Larson, at the UW Botanic Gardens, meanwhile, said their horticulturalists are looking off-continent for inspiration for the hard years ahead. “We’re experimenting more with plants in Mediterranean climates,” he said, and “also the southern hemisphere: Australia, Chile, New Zealand." Places that have "somewhat similar climates," to the Pacific Northwest, “but tend to get a little bit hotter." And while some of these experiments haven’t panned out as hoped in the past, “we’re going to try them again, because 5 or 10 degrees can make all the difference.”
The conventional wisdom, that introducing or nurturing exotics results in a decline in biodiversity, is also being challenged — often heatedly so. It can seem at times that for every study that expounds on the evils wrought by alien plants, another concludes the exact opposite. The ongoing debate has produced fiery polemics, such as one signed by 19 ecologists and published in Nature in 2011, which announced “it is time … to ditch this preoccupation with the native-alien dichotomy and embrace more dynamic and pragmatic approaches … better suited to our fast-changing planet.” The scientists also swatted down the frequent synonymizing of “nativeness” with “good,” pointing out that “the insect currently suspected to be killing more trees than any other in North America is the native mountain pine beetle.”
(These sorts of back-and-forths are presumably what led former Arnold Arboretum horticulturist Peter Del Tredici, one of the Nature letter’s signatories, to observe, “the use of exotic versus native species … seems to bring out the worst in people, not unlike the debates over gun control and abortion.” Whoever said gardening was boring?)
Arthur Shapiro, a distinguished professor of evolution and ecology at the University of California at Davis, is also among those who have challenged the uncompromising emphasis on the superiority of native plants. “There are many nonnative plants grown in gardens that are immensely useful to butterflies and other pollinators,” Shapiro told me. “And there are many native plants that are completely useless. They might as well be made with rubber or wood.” If you were to uproot every exotic plant in urban California, for instance, you’d “essentially do away with the butterfly fauna.”
That’s partially due to a principle known as ecological fitting, which is “what happens when species with totally disparate histories, that evolved in different parts of the world, come into contact — perhaps as a result of commerce, perhaps as a result of gardening — and they fit together,” said Shapiro. “It’s a marriage made in heaven.” Additionally, oft-vilified “novel ecosystems”, sometimes disparagingly dismissed as “trash ecosystems," arise when exotic species are naturalized due to human influence and/or certain native species recede. Increasingly, though, scientists like Shapiro are viewing these emerging anthropocenic systems as environmental success stories. An unmanaged invasive pine plantation in Puerto Rico, for example, was found to have far more biodiversity than a nearby native-only forest of the same age, Nature recounts; the observation, made in 1979, ran so counter to the established beliefs about the sanctity of native plants that “it took almost a decade" for the resulting paper to pass peer review.
The native/non-native dichotomy is undoubtedly clumsy, so much so that one idea has been to dispense with the unhelpful language altogether. “Neonative,” a term proposed by University of Vienna conservation biologist Franz Essl, for example, could be adapted to describe species that have moved beyond their native ranges and established new foothold populations “due to human-induced changes of the biophysical environment, but not as a result of direct movement by human agency.”
Another idea is to take a step back, put our preconceived notions in check, and learn from what we’re seeing. “As climate changes, communities are going to change, mixtures are going to change,” Shapiro said. “Trying to stop it — except for managing things of economic or medical importance, pests, or disease vectors — is equivalent to trying to plow the sea. It’s futile. So we should actually be paying close attention to what’s happening, because we can learn a lot from it, about how communities self-assemble.”
This isn’t your permission to go plant a bunch of English ivy and scotch broom, though. Two things can potentially both be true: certain native plants have essential ecological functions and some non-native plants can play an important role in shaping future ecosystems. In fact, they’re going to have to, if the climate keeps warming and the hardiness zones continue their upward march.
“We would always tell someone: choose native first,” Smith, of the Arbor Day Foundation, concurred. But at the same time, “Let’s not let the perfect be the enemy of the good.”
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Current conditions: The Atlantic hurricane season officially began today, in what’s expected to be a relatively mild year • A powerful storm with winds of up to 80 miles per hour is walloping broad swaths of millions of Australians • Temperatures in Oman are approaching 120 degrees Fahrenheit.

The United States’ offshore wind industry is, at this very moment, booming — at least in terms of the turbine arrays finally coming online in recent weeks. But there are no new projects underway as President Donald Trump pulls out all the stops to kill the industry in what I have previously called a death by a thousand cuts. That’s despite the fact that demand for electricity is soaring in the U.S. Luckily for Americans, our nation’s aging network of power grids overlaps with our northern neighbor’s. And Canada is now looking at a potential offshore wind boom. Last summer, Nova Scotia started laying the groundwork for offshore wind projects. Now Ming Yang, the world’s third-largest manufacturer of wind turbines, is considering investing in a project off Canada’s Pacific coast. The proposed project in the Hecate Strait off British Columbia would add up to 2 gigawatts of offshore wind capacity to Canada’s portfolio, according to Renewables Now. It’s part of Ming Yang’s broader push into Western markets, as my colleague Matthew Zeitlin reported last October.
Just days after New York State delayed its carbon-cutting plan and loosened the rules on how it counts greenhouse gases, California mounted its own retreat on climate goals. On Friday, Bloomberg reported that the California Air Resources Board had voted to give as much as $4 billion of free allowances to oil refiners and other industrial polluters to make compliance with the state’s 13-year-old carbon market easier. At least New York Governor Kathy Hochul “had the decency” to signal publicly that she intended to roll back the state’s climate law, said Danny Cullenward, an economist and lawyer who wrote a book on climate policy. “Here in California we do the same in private and call it climate leadership,” Cullenward wrote of California Governor Gavin Newsom and CARB Chair Lauren Sanchez in a post on Bluesky.
Kudos to the Trump administration, then, for being so open about its plans to render the SEC something that might more appropriately serve as an acronym for Salting the Earth of Climate disclosures. Last month, I told you that the Securities and Exchange Commission was reviewing a Biden-era rule requiring companies to disclose the risk climate change posed to their businesses. On Friday, the agency formally proposed eliminating the regulation. “SEC disclosure obligations should comply with the Commission’s statutory authority, be guided by materiality as the North Star, avoid the practical effect of dictating corporate behavior, and be imposed only when the expected benefits justify the likely costs and burdens,” SEC Chairman Paul S. Atkins said in a statement.
Rehlko isn’t a household name, but it used to be: The 106-year-old firm was previously called Kohler Energy. But since spinning out from the titan of American manufacturing of kitchen sinks and bathroom toilets, Rehlko has honed its business as a leading producer and installer of generators and the infrastructure to house the diesel-, gas-, or hydrogen-fired power sources. Now, I can report exclusively for this newsletter, the company is preparing to expand its factory in Wisconsin as its backlog of orders for generators to power data centers stretches beyond 13 months. In an interview on Friday, Rehlko CEO Brian Melka told me that this facility is part of a plan “to increase the size and the output of the business about four to five times, or 400% to 500%, over the next five or six years.” The Wisconsin plant is specifically designed to assemble the company’s “e-frame” product, a generator enclosure that looks like a shipping container and includes the wiring and fire suppression tools needed to safely house one of Rehlko’s proprietary generators, which provide off-grid back-up power to data centers, hospitals, and other large power users. In addition to beefing up its capacity to manufacture more generators and enclosures, the company is expanding its engineering team for larger projects in which Rehlko uses another firm’s gas turbines for full-time power generation.
“We want to maintain that competitive edge, not only to be able to deliver the product faster but also to deliver the entire solution faster,” Melka said. “This is going to significantly increase our capacity as we go into 2027 with this new facility to be able to build many more fully enclosed units. The demand keeps pushing out. We essentially sold out the capacity for that building for 2027 and 2028 before we even signed the lease.”
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Unlike Russia, France, Japan, and China, the U.S. doesn’t recycle its nuclear waste. That is, until now. Roughly half a dozen companies are competing to be the first to create a beachhead for a new recycling industry in the U.S. Now one of those startups, Curio, has kicked off the pre-application process for a Nuclear Regulatory Commission permit. It’s just an inaugural step: Submitting a letter of intent to the agency to establish a docket and start providing documents to the regulator. But Curio plans to build a plant that could process up to 4,000 metric tons of used commercial light water reactor fuel per year. “The initiation of this application process marks a key and decisive moment for Curio and our nation as we commercially deploy what will be the world’s most advanced and capable used nuclear fuel recycling facility based on our game-changing NuCycle technology,” Curio CEO Ed McGinnis said in a statement, referring to the brand of the company’s reprocessing technology that was recently validated by four of the Department of Energy’s national laboratories.
South Korea, meanwhile, wants to start enriching and reprocessing its own fuel, and has garnered support from the Trump administration to do so. In the meantime, the democratic world’s most competent builder of civilian nuclear plants is doing what it does best and starting construction on a new reactor. On Friday, World Nuclear News reported that crews had poured the first concrete for Shin Hanul nuclear plant’s fourth reactor.
In January, I told you when Century Aluminum overhauled its plans to build the first new aluminum smelter in the U.S. to include an investment from an Emirati company. At the time, the Energy Department hailed the deal as a sign that Trump’s tariffs were working. On Friday, Mining.com published a feature building off a report from the advocacy group Industrious Labs that examined the recent push for new aluminum smelting in the U.S. The analysis concluded that, while 50% tariffs bolstered the sector, “access to industrial-scale electricity — and increasingly industrial-scale clean electricity — is the pain point,” said Annie Sartor, senior campaigns director at Industrious Labs. “Aluminum producers are being scooped by data centers and hyperscalers. They can simply pay more for the power.”
Among the more exciting concepts for supplying the market with cheap, clean, and affordable hydrogen is finding the stuff in naturally-formed underground reservoirs, allowing oil and gas drillers to do their thing for a green fuel. Now Oman, the Arab world’s diplomatic equivalent of Switzerland, is making progress in drilling the first wells for natural hydrogen. HyTerra, the Australian startup exploring for hydrogen in the country, told the Oman Observer that the successful pilot well boded well for tapping “one of the best source rock systems” for natural hydrogen yet discovered in the world. Given the latest heat wave in the country, the value of a fossil fuel replacement is likely becoming more obvious.
A group of energy researchers have a three-part prescription for Washington, D.C.’s exploding energy costs.
Washington, D.C. has earned an unwelcome distinction: the largest one-year electricity price increase of any state (or equivalent geographic distinction) in the U.S. Prices there are up 87% over the past five years and 26% in the past year alone, according to new data from MIT and Heatmap News’ Electricity Price Hub. The average D.C. household is now paying $55 more for power each month than it did five years ago.
In the face of this crisis, local officials have done little but blame regional markets, emphasizing the parts of recent rate increases they don’t fully control — generation charges — rather than any proactive measures they could take to offer relief to D.C. households. Meanwhile Exelon, the parent company for Pepco, D.C.’s local utility, has used the crisis to lobby state policymakers across the region for something worse — a return to utility-owned generation, which could leave consumers holding the bag for projects that run over budget or that are built for demand that never materializes.
As residents of Washington, D.C. and energy researchers who helped put together the Electricity Price Hub, we are well aware that the District cannot remake the regional electricity market on its own. But it has meaningful tools to protect ratepayers now.
To be sure, the problems D.C. faces are not entirely of its own making. Rising demand and constrained supply across the Mid-Atlantic have created a wholesale market pressure cooker.
Capacity market prices in the Pepco region, which are set through a regional auction scheme designed to ensure the grid can reliably deliver power when demand peaks, increased more than fivefold in 2025. Those costs are passing through to retail bills. As capacity has come under increasing strain, generation charges in Pepco’s standard supply service have gone up 119% — 33% in the past year alone, with yet another rate increase set to kick in on June 1.
That regional dynamic is real. But it does not absolve local officials.
Roughly 30% of Pepco’s average residential bill is made up of charges that fall squarely under D.C. jurisdiction. Distribution charges, the largest of those local components, have risen 57% over five years, and account for 20% of the total rate increase. The D.C. Public Service Commission regulates utilities in the District and must approve Pepco’s rates before they take effect. The commission, in turn, answers to the D.C. Council, the District’s legislature, which confirms its commissioners and oversees its work. These bodies should be examining every dollar of Pepco’s proposed increases. Instead, a D.C. court recently struck down the commission’s most recent rate-hike approval, finding that it had failed to sufficiently scrutinize Pepco’s request.
When a regulator is doing such a poor job that judges have to step in, that is a five-alarm signal. Yet there is a workable action plan for the Council and the PSC to rein in costs and ease the burden on D.C. households.
First, scrutinize distribution charges aggressively — that is squarely within their jurisdiction. As Pennsylvania Governor Josh Shapiro argued in his public letter to utility leaders last month, the PSC should require Pepco to justify every additional dollar of revenue requested in plain language. That means using transparent, replicable data and analysis to show why it’s needed, the alternatives considered, and how the proposed spending will concretely benefit consumers. To support this, the D.C. Council should ensure that the PSC, the Office of the People’s Council, and relevant state agencies are adequately resourced and positioned to engage with and probe Pepco’s arguments in rate proceedings.
Second, force transparency into how Pepco procures power. The public has remarkably little visibility into what makes up generation charges for the utility. For example, how much of the total cost is attributable to capacity prices, energy procurement, administrative costs, and compliance with the District’s Renewable Energy Portfolio standard? And what changes could D.C. consider to the competitive procurement process or RPS eligibility requirements to mitigate costs? Officials can’t manage what they can’t measure.
Third, attack demand by making it easier for customers to generate their own supply. High and unpredictable interconnection fees, process delays, and other administrative hurdles add unnecessary costs and contribute to the above-average cost of solar in D.C.. The D.C. Council and PSC can incentivize distribution-level solar battery deployment by cutting permitting and interconnection costs and improve cost transparency and streamline interconnection reviews to speed up the process of installing solar and storage.
None of these moves alone will reverse five years of rate increases. But together they would put real downward pressure on bills and signal that the city is serious.
What officials should reject — across the region — is Exelon’s push for utility-owned generation. In practice, it could create a generation subsidiary tomorrow. The reason it wants its rate-regulated distribution utility to do so instead is that this would let it earn a guaranteed return on costs it currently just passes through, while shifting the risk of cost overruns, schedule slips, and overbuilt capacity from shareholders to ratepayers. It would also hand the utility an information advantage over independent power producers, suppressing the competition the market relies on to keep prices honest. More profit, less risk, less competition. A great deal — for the utility.
The D.C. Council recently passed emergency legislation pausing utility disconnections for residents with unpaid balances under $1,000. That is a humane stopgap as we head into summer, but it is not a strategy. Neither is anything that has been proposed during the current mayoral race, in which leading candidates have attacked each other’s records instead of offering a plan to lower bills.
D.C. residents do not need more blame-shifting. The choice in front of the council and the PSC is concrete: Scrutinize what is in their jurisdiction, force the transparency they have the authority to require, accelerate the cheapest sources of new supply, and refuse to subsidize a Pepco business model that turns ratepayers into the underwriters of utility risk. That is the test of whether they meet this moment seriously.
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.