Ahead of next year’s legislative session, lawmakers probe regulators and industry leaders about how data centers operate.

By Arcelia Martin

As Texas confronts decades of water mismanagement and growing demands for electricity from data centers, the state’s top utility regulator, Public Utility Commission Chairman Thomas Gleeson, told a state House committee on Thursday that it’s critical to have a clear picture of how much water data centers use.

Texas Data Center Developers Play Offense on Water, Claiming Huge Cuts in Usage 

N.C. Gov. Josh Stein wants state lawmakers to rethink tax breaks for data centers. The industry’s opacity makes it difficult to evaluate costs and benefits.

By Lisa Sorg

Tax breaks for data centers in North Carolina keep as much as $57 million each year into from state and local government coffers, state figures show, an amount that could balloon to billions of dollars if all the proposed projects are built.

What Is the Economic Impact of Data Centers? It’s a Secret.

The Global Environment Facility (GEF), a multilateral fund that provides climate and nature finance to developing countries, has raised $3.9 billion from donor governments in its last pledging session ahead of a key fundraising deadline at the end of May.

The amount, which is meant to cover the fund’s activities for the next four years (July 2026-June 2030), falls significantly short of the previous four-year cycle for which the GEF managed to raise $5.3bn from governments. Since then, military and other political priorities have squeezed rich nations’ budgets for climate and development aid.

The facility said in a statement that it expects more pledges ahead of the final replenishment package, which is set for approval at the next GEF Council meeting from May 31 to June 3.

Claude Gascon, interim CEO of the GEF, said that “donor countries have risen to the challenge and made bold commitments towards a more positive future for the planet”. He added that the pledges send a message that “the world is not giving up on nature even in a time of competing priorities”.

Donors under pressure

But Brian O’Donnell, director of the environmental non-profit Campaign for Nature, said the announcement shows “an alarming trend” of donor governments cutting public finance for climate and nature.

“Wealthy nations pledged to increase international nature finance, and yet we are seeing cuts and lower contributions. Investing in nature prevents extinctions and supports livelihoods, security, health, food, clean water and climate,” he said. “Failing to safeguard nature now will result in much larger costs later.”

At COP29 in Baku, developed countries pledged to mobilise $300bn a year in public climate finance by 2035, while at UN biodiversity talks they have also pledged to raise $30bn per year by 2030. Yet several wealthy governments have announced cuts to green finance to increase defense spending, among them most recently the UK.

As for the US, despite Trump’s cuts to international climate finance, Congress approved a $150 million increase in its contribution to the GEF after what was described as the organisation’s “refocus on non-climate priorities like biodiversity, plastics and ocean ecosystems, per US Treasury guidance”.

The facility will only reveal how much each country has pledged when its assembly of 186 member countries meets in early June. The last period’s largest donors were Germany ($575 million), Japan ($451 million), and the US ($425 million).

The GEF has also gone through a change in leadership halfway through its fundraising cycle. Last December, the GEF Council asked former CEO Carlos Manuel Rodriguez to step down effective immediately and appointed Gascon as interim CEO.

Santa Marta conference: fossil fuel transition in an unstable world

New guidelines

As part of the upcoming funding cycle, the GEF has approved a set of guidelines for spending the $3.9bn raised so far, which include allocating 35% of resources for least developed countries and small island states, as well as 20% of the money going to Indigenous people and communities.

Its programs will help countries shift five key systems – nature, food, urban, energy and health – from models that drive degradation to alternatives that protect the planet and support human well-being by integrating the value of nature into production and consumption systems.

The new priorities also include a target to allocate 25% of the GEF’s budget for mobilising private funds through blended finance. This aligns with efforts by wealthy countries to increase contributions from the private sector to international climate finance.

Niels Annen, Germany’s State Secretary for Economic Cooperation and Development, said in a statement that the country’s priorities are “very well reflected” in the GEF’s new spending guidelines, including on “innovative finance for nature and people, better cooperation with the private sector, and stable resources for the most vulnerable countries”.

Aliou Mustafa, of the GEF Indigenous Peoples Advisory Group (IPAG), also welcomed the announcement, adding that “the GEF is strengthening trust and meaningful partnerships with Indigenous Peoples and local communities” by placing them at the “centre of decision-making”.

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GEF raises $3.9bn ahead of funding deadline, $1bn below previous budget