BY JESSYCA SHEEHAN
I’m back in Sacramento after Climate Week NYC with fresh perspective on our work in California and the partners who make it possible. Across the week, on stage and in one-on-one conversations, the dialogue kept turning to AI and data centers. Those conversations opened a window into a broader question: How do we meet rising energy demand while balancing reliability, affordability and sustainability?
That question ran through the week, and four common threads stood out.
⚡ Speed to power. Electricity demand is climbing faster than the grid can keep up, driven by data centers, electrification and economic growth. The fixes on the table aren’t new, but the urgency is: we’ll need permitting reform at all levels of government and much faster transmission buildout. Hyperscalers, companies supporting the biggest cloud and AI businesses, face growing pressure to bring their own clean energy and pay for grid upgrades and interconnection so other customers don’t foot the bill. In turn, companies and investors want policy and regulatory certainty to support long-term capital investment. That need is sharpest for emerging technologies like fusion and enhanced geothermal. Early government signals, including cost sharing and public-private partnerships, can help attract the capital needed to propel the tech forward. California just delivered one such signal. On Sept. 30, Gov. Gavin Newsom signed legislation to develop a statewide fusion strategic plan and commercial fusion strategy, which includes opportunities to expand fusion research and manufacturing.
💬 Trust. Delivery depends on public support, and affordability sits at the center of it. People worry about their utility bills and don’t want to pay more. Data centers show both the risk and the path forward. Opposition to them has grown fast, yet people don’t necessarily want projects stopped. They want them regulated and built responsibly, and they want transparency in the process. The lesson applies to any major project: Engage communities early and authentically and bring real benefits to the people who live and work nearby.
📊 Measurement. You need to know where you’re starting from to figure out how to get where you’re going. During Climate Week, Gov. Newsom signed a package of data center bills requiring California data centers to report their energy and water use. Good data, especially early in a project, drives forecasting, scenario planning and responsible development. Over time, it shows what’s working and what isn’t.
🤝 Partnership. With federal momentum uncertain, states, cities and the private sector are carrying the load on climate policy and action. Much of the week centered on how leaders can work together through new partnerships, shared resources and alliances that would have seemed unlikely a few years ago. Despite strong headwinds, the mood was optimistic and open. Back home, California is already acting on that spirit.
