Trump administration threatens 92 GW of new electricity supply with red tape

Permitting challenges posed by the previous administration are casting a shadow over the development of 92 gigawatts of clean energy, even as the need for electricity, particularly from AI data centers, surges. A recent study by consulting firm Wood Mackenzie reveals that changes in permitting and cuts to federal funding have already resulted in the cancellation of 7 gigawatts of generating capacity on federal land slated for 2025. The report warns that stricter scrutiny could additionally halt another 12 gigawatts on federal land and 80 gigawatts on private properties. This regulatory landscape jeopardizes over $121 billion in investments in the energy sector. Electricity demand has been on an upward trajectory after two decades of stagnation, significantly fueled by the rapid growth of data centers linked to the AI industry. Market experts at BloombergNEF predict that the number and scale of these data centers will continue to expand over the next decade, leading to nearly a threefold increase in their electricity consumption by 2035. In response to these challenges, the Federal Energy Regulatory Commission has mandated that grid operators expedite connections, yet these measures have not resolved the pressing bottleneck in new generating capacity, which is nearing crisis levels in certain areas. In the U.S.'s largest grid, home to a significant number of data centers, operators have spent the last four years halting new generating sources from connecting, effectively stalling supply amid rising demand. As a result, public frustration is growing, prompting tech companies to take matters into their own hands by constructing their own power plants on-site. Where new power plants have been built, renewables have dominated the landscape, with solar, batteries, and wind accounting for nearly 90% of the record 53 gigawatts of new generating capacity added in 2025. The increase in permitting challenges can be traced back to an August 2025 directive from Doug Burgum, the U.S. Secretary of the Interior, aimed at curbing environmentally harmful wind and solar projects. While wind and solar developments have been the primary focus of this scrutiny, energy storage initiatives have also faced cancellations, according to the Wood Mackenzie report. Most permitting issues are concentrated in states such as Oregon, Alabama, Maine, Minnesota, and Montana. Solar installations near private wetlands are particularly vulnerable, while wind farms are being assessed under stringent airspace regulations. The future of solar projects remains uncertain, especially following the recent decision to lift protections for 80% of U.S. wetlands. Burgum's current stance marks a significant departure from his earlier role as governor of North Dakota, where he championed wind energy expansion and set ambitious goals for carbon neutrality by 2030. Just last year, he highlighted North Dakota’s abundant wind resources, which accounted for a third of the state's electricity supply in 2022.