Sparks
Georgia Just Released Eye-Popping New Energy Demand Estimates
We’ll give you one guess as to what’s behind the huge spike.
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:
We’ll give you one guess as to what’s behind the huge spike.
They grew up on Biden-era climate regulations and tax credits. What happens now?
Rob and Jesse talk about what comes next in the shift to clean energy.
On an EV production pause, a fancy new chart, and positive emissions news from the EU.
CoreWeave signed a deal for a new facility in New Jersey, behind-the-meter power on the side.
The cloud computing company CoreWeave announced Monday that it is leasing a former medical research facility and turning it into a data center. Along with it comes a 25-megawatt power plant that once provided power and steam directly to the former Merck headquarters in Kenilworth, New Jersey, but began to sell more and more power to the grid, the plant’s owner said in a filing with the Federal Energy Regulatory Commission. In 2023, the facility was purchased by Onyx, a real estate firm, and Machine Investment Group, with the intention to market the site to another life sciences or biotechnology company.
Then the AI revolution happened.
CoreWeave, which started as a miner of cryptocurrency, is now raising and spending billions of dollars to acquire and install the chips necessary to train and run artificial intelligence systems for companies that rent out access to them. According to the deal announcement, the company plans to pour $1.2 billion of investment into the 280,000 square foot facility, along with electrical upgrades from the utility PSE&G and investments from Onyx. The power plant will stop serving the grid and go “behind the meter,” the plant’s owner Atlantic Power said in a letter to PJM Interconnection, the regional electricity market, in September.
The deal confirms that when it comes to power, data centers will take what they can get — and that the long timelines necessary to bring on new power in much of the country may end up benefiting existing owners of generation, especially natural gas.
Data centers require both large amounts of power — sometimes 100 megawatts or more — and the ability to surge up and down quickly. “Renewable power generation is well placed to capture mounting demand from data centers and AI in the long term,” analysts at BNEF wrote in a report in September, “but time constraints for grid interconnection and intermittency issues could support natural gas-fired output.”
Goldman Sachs analysts expect data center power demand to rise from about 3% of the U.S. total to 8% by 2030, with growth running at 15% annually. They assume that capacity will be met mostly by natural gas, but actually finding — let alone building — new natural gas generation is a challenge.
“The hyperscalers are evolving from single data centers dependent on 60 to 100 megawatts to starting to look at multiple gigawatt-size data center parks that support a number of data centers in one location,” GE Vernova chief executive Scott Strazik said on a recent earnings call with analysts.
Building a new natural gas plant on the grid — and especially the transmission infrastructure to serve it — can be a prospect well beyond the build-it-now timelines of big technology companies with a desperate need for computing power.
“Thanks to 10-year delays in permitting for new transmission lines and connecting generation capacity to the grid, the most viable near-term option is behind-the-meter,” Tim Fist and Arnab Datta wrote in a report for the Institute for Progress, a technology and science policy think tank. In other words, one way to get around grid interconnection and intermittency issues is to have your own power plant.
“The economics of developing the power on site don't really hurt the data center economics that much. These things are just really profitable,” Carson Kearl, an analyst at Enverus, told me.
Some data centers have developed their own natural gas generation on site, such as XAi’s cluster in Memphis, Tennessee, which ispowered by gas generators.
CoreWeave, meanwhile, is one of the most talked-about and well-funded companies in cloud computing, with access to a huge number of chips made by Nvidia, the leading designer of high-end processors, and which is also an investor in CoreWeave. But the chips can only perform when they’re powered, turning the data center business into a hunt for electricity wherever it can be found.
“Access to reliable power could be a roadblock towards the timely buildout” for a data center, Francois Poirier, the chief executive of TC Energy, the Canadian pipeline company, told analysts on an earnings call in August. “We’re seeing a shift in siting preferences from regions where big telecom infrastructure is in place to regions where energy and supply infrastructure is in place.”
CoreWeave, PSE&G, Onyx, and Atlantic Power’s owner, I Squared Capital, did not respond to requests for comment.
This situation has not come about for lack of effort on the part of the several electricity markets that have been trying to get new natural gas generation on the grid. PJM, for example, has been working to entice new supply, but even following a record auction for power capacity that paid out billions to natural gas plants, few producers have indicated their willingness to make large new investments. Texas has established a multibillion-dollar loan fund to provide low-cost financing to new natural gas plants.
While several large technology companies have announced their intention to buy nuclear power from refurbished or new plants, those deals will take at least several years to actually get any new electrons on the grid.
That leads data center developers like CoreWeave scrambling to find what power they can. In interviews, the company’s chief strategy officer Brian Venturo told Wired that they are avoiding Northern Virginia’s “data center alley” precisely because it’s “a food fight to get power.”
“There's a lot of growing backlash in that market around power usage,” he told Bloomberg. “We're kind of siting our plants and markets where our data centers and markets where we think the grid infrastructure is capable of handling it.”
And what better place than where the power already is.
On floating offshore wind, a new ‘Lancet’ report, and collectible footwear.
Current conditions:At least 51 people were killed by flash floods in Spain yesterday • Rapidly intensifying Super Typhoon Kong-rey is barreling toward Taiwan • Mount Fuji has yet to see snow this year, marking the latest date the mountain has been bare in 130 years.
British medical journal
The Lancet’s annual report tracking climate change and public health paints a stark picture of worsening heat-related deaths, food insecurity, and exposure to life-threatening diseases. The authors find that 10 of their 15 indicators for climate change-related health hazards “reached concerning new records.” These impacts are, of course, not hitting everyone equally. Heat-related deaths among people over 65 were 167% higher last year than in the 1990s. The global population also lost 6% more sleep due to heat than the average between 1986 and 2005, with the worst impacts seen in the Middle East and sub-Saharan Africa.
The authors warn that that oil and gas companies are reinforcing global dependence on their product. “The relentless expansion of fossil fuels and record-breaking greenhouse gas emissions compounds these dangerous health impacts, and is threatening to reverse the limited progress made so far and put a healthy future further out of reach,” Marina Romanello, executive director of the Lancet Countdown
told The Guardian.
An offshore wind lease sale in the Gulf of Maine yesterday ended with two bidders offering a combined $22 million for the rights to develop projects on four ocean tracts. While that’s only half of the leases that were up for sale, the results were better than many local advocates had hoped for considering the uncertainty for the industry related to the upcoming election. As Heatmap’s Matthew Zeitlin has written, “Trump has special contempt for wind energy in all its forms — to him, all wind turbines are bird murderers, but offshore turbines are especially deadly.” Trump has promised to shut down the industry on “day one.”
If fully developed, the leases could generate 6.8 gigawatts of electricity, or enough to power about 2.3 million homes, according to the Bureau of Ocean Energy Management. But that part of the ocean is deep, and the projects will need to utilize still-nascent floating offshore wind technology.
The Biden administration announced the winners of the Clean Ports program on Tuesday, a $3 billion grant program created by the Inflation Reduction Act to reduce toxic air pollution and carbon emissions at the nation’s shipping hubs. The 55 grants across 27 states and territories will support the electrification of cargo handling equipment, drayage trucks, trains, and ferries, as well as solar power projects and EV charging infrastructure. The projects are expected to cut more than 3 million metric tons of CO2 over the first 10 years of implementation. For context, the three largest U.S. ports emitted more than 2.5 million tons of CO2 in 2019.
A report from the American Lung Association published this morning highlights the potential for satellites to improve our understanding of air quality. New methods for translating measurements of various gases and particles into estimates of ground-level pollution can help fill data gaps in communities that don’t have local air quality monitoring systems. Nearly two-thirds of U.S. counties lack monitoring stations, the report says, whether due to cost constraints, low population density, or rapid land use change. The authors identified 300 counties with incomplete or no monitoring data that likely had unhealthy levels of air pollution in 2020, 2021, and 2022.
The indefatigable Ben Elgin at Bloomberg has uncovered yet another problem in the carbon market. Twenty years ago, Nike created millions of carbon credits tied to the sneaker brand’s efforts to stop using sulfur hexafluoride, a powerful greenhouse gas that was previously pumped into its soles. Now, ACR, formerly known as the American Carbon Registry, has disclosed that more than a million of those credits are in its “buffer pool,” which is supposed to provide insurance for buyers. If a forestry project in the registry burns, for example, credits set aside in the buffer pool can be cancelled to make up for the loss.
But Nike’s credits were basically meaningless to begin with — the decision to change the shoes had nothing to do with the carbon market, Nike confirmed to Bloomberg — and they’re even more meaningless 20 years later. “It was a somewhat notorious project for those of us in the North American carbon market 15 years ago,” Derik Broekhoff, a senior scientist at the Stockholm Environment Institute, told Elgin.
Driverless Waymo vehicles now complete more than 150,000 passenger trips per week. “If ‘driverless Waymo car’ were a transit system, it would be the nation’s 11th most used, between Miami Metrorail and the Staten Island Railway,” according to NYU Stern professor Arpit Gupta.
A self-driving Waymo on the streets of Los Angeles. Mario Tama/Getty Images