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Amazon to spend $20B on data centers in Pennsylvania, including one next to a nuclear power plant

SUMMARY:

  • plans $20B investment in two .
  • One data center will connect directly to Susquehanna nuclear plant.
  • State to provide $10M for workforce training and job development.
  • reviewing power-sharing deal over “behind the meter” setup.

HARRISBURG, Pa. (AP) — Amazon said Monday that it will spend $20 billion on two data center complexes in Pennsylvania, including one it is building alongside a plant that has drawn federal scrutiny over an arrangement to essentially plug right into the power plant.

Kevin Miller, vice president of global data centers at Amazon’s subsidiary, Amazon Web Services, told The Associated Press that the company will build another data center complex just north of Philadelphia.

One data center is being built next to northeastern Pennsylvania’s Susquehanna nuclear power plant. The other will be in Fairless Hills at a logistics campus, the Keystone Trade Center, on what was once a U.S. Steel mill.

At a news conference in Berwick in the shadow of the power plant, Gov. called it the largest private sector investment in Pennsylvania’s history. He said Monday’s announcement is “just the beginning” because his administration is working with Amazon on additional data center projects in the state.

While critics say data centers employ relatively few people and pack little long-term job-creation punch, their advocates say they require a huge number of construction jobs to build, spend enormous sums at area vendors and generate strong tax revenues for local governments.

Shapiro touted the work that will keep construction trades members busy building Amazon’s data centers, the tech jobs that will be waiting for graduates of area colleges and the millions of dollars in property taxes that will flow to schools and local governments.

“For too long, we’ve watched as talents across Pennsylvania got hollowed out and left behind,” Shapiro said at the news conference. “No more. Now is our time to rebuild those communities and invest in them. This investment in Pennsylvania starts reversing that trend.”

Pennsylvania will provide millions of dollars, and possibly tens of millions, in incentives, typically a key element of data center deals as states compete for the large installations they hope will be an economic bonanza.

Shapiro’s administration said it would spend $10 million to pay for training classes and facilities at schools, community colleges and union halls to meet the skills demand for the data centers.

Amazon also will qualify for Pennsylvania’s existing sales tax exemption on purchases of data center equipment, such as servers and routers, an exemption that most states offer and that is viewed as a must-have for a state to compete.

The announcements add to the billions of dollars in Big Tech’s data center cash already flowing into the state.

Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products.

The rapid growth of cloud computing and artificial intelligence has meanwhile fueled demand for energy-hungry data centers that need power to run servers, storage systems, networking equipment and cooling systems.

The majority owner of the Susquehanna nuclear power plant, Talen Energy, announced last year that it had sold its data center to Amazon for $650 million in a deal to eventually provide 960 megawatts. That’s 40% of the output of one of the nation’s largest nuclear power plants, or enough to power more than a half-million homes.

However, the arrangement between Talen and Amazon — called a “behind the meter” connection — has been held up by the Federal Energy Regulatory Commission in the first such case to come before the agency.

It has raised questions over whether diverting power to higher-paying customers will leave enough for others and whether it’s fair to excuse big power users from paying for the grid.

For Big Tech, plugging data centers directly into a power plant can take years off their development timelines and is a much faster route to procuring power than connecting to the congested electricity grid.

It’s not clear when FERC, which blocked the deal on a procedural grounds, will decide the matter, leaving in limbo regulatory treatment of the deal and others that likely would follow.

Already in Pennsylvania, Microsoft announced a deal with the owner of the shuttered Three Mile Island nuclear power plant to restart the reactor under a 20-year agreement to supply its data centers in four states with energy.

Meanwhile, the owners of what was once Pennsylvania’s biggest coal-fired power plant say they will turn it into a $10 billion natural gas-powered data center campus.

The US and China are holding trade talks in London after Trump’s phone call with Xi

SUMMARY:

  • U.S. and China held high-level in Monday.
  • A 90-day suspension of is currently in effect.
  • Rare earth exports and semiconductor tensions are key issues.
  • U.K. hosted talks but was not directly involved in negotiations.

LONDON (AP) — High-level delegations from the United States and China met in London on Monday to try and shore up a fragile truce in a trade dispute that has roiled the ,

A Chinese delegation led by Vice Premier He Lifeng held talks with U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer at Lancaster House, an ornate 200-year-old mansion near Buckingham Palace.

Wang Wentao, China’s commerce minister, also was part of Beijing’s delegation.

The talks, which may continue Tuesday, follow negotiations in Geneva last month that brought a temporary respite in the .

The two countries announced May 12 they had agreed to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession.

The U.S. and China are the world’s biggest and second-biggest economies. Chinese trade data shows that exports to the United States fell 35% in May from a year earlier.

Since the Geneva talks, the U.S. and China have exchanged angry words over advanced that power artificial intelligence, visas for Chinese students at American universities and ” rare earth ” minerals that are vital to carmakers and other industries.

President Donald  spoke at length with Chinese leader by phone last Thursday in an attempt to put relations back on track. Trump announced on social media the following day that the trade talks would resume in London.

were expected to be a focus of the talks. The Chinese government started requiring producers to obtain a license to export seven rare earth elements in April. Resulting shortages sent automakers worldwide into a tizzy. As stockpiles ran down, some worried they would have to halt production.

Beijing indicated Saturday that it is addressing the concerns, which have come from European companies as well as U.S. firms.

Kevin Hassett, a U.S. economic adviser, told CNBC on Monday that he expected a short meeting with “a big, strong handshake” on rare earths.

The U.K. government says it is providing the venue and logistics but is not involved in the talks, though British Treasury chief Rachel Reeves met with both Bessent and He on Sunday, and U.K. Business Secretary Jonathan Reynolds was due to meet Wang.

“We are a nation that champions free trade and have always been clear that a trade war is in nobody’s interests, so we welcome these talks,” the British government said in a statement.

Precision Walls, Inc.

Randall Swift

Precision Walls Inc. (“PWI”) is proud to announce the promotion of Randall Swift from General Manager to Vice President of our Richmond, VA branch.

Randall joined Precision Walls as an intern in 2010 at our Raleigh, NC branch. After graduating from East Carolina’s Construction Management Program, he returned to our team in 2011 and spent the next 14 years advancing in various roles of increased responsibility, including Sales Manager, before moving to Richmond in 2021 to lead our Richmond branch team as General Manager. As Precision Walls continues its dedication to building strong customer relationships in the construction industry, Randall exemplifies being the partner that helps drive your job.

East Carolina University

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US stocks drift and Chinese markets rise as trade talks start between the world’s largest economies

SUMMARY:

  • U.S. and China resumed in to ease tariffs.
  • nears record as markets rebound quickly from April slump.
  • and IonQ rise after billion-dollar buyouts.
  • rebounds 4.6% after recent slump amid Musk- fallout.

NEW YORK (AP) — U.S. stocks drifted through a quiet Monday as the world’s two largest economies began talks on trade that could help avoid a recession.

The S&P 500 edged up by 0.1% and is within 2.3% of its record, which was set in February. The Dow Jones Industrial Average slipped by 1 point, which is well below 0.1%, and the Nasdaq composite added 0.3%.

Officials from the United States and China met in London to talk about a range of different disputes that are separating them. The hope is that they can eventually reach a deal that will lower each’s punishing level of tariffs against the other, which are currently on pause, so that the flow of everything from tiny tech gadgets to enormous machinery can continue.

Hopes that President Donald Trump will lower his tariffs after reaching such trade deals with countries around the world have been among the main reasons the S&P 500 has rallied so furiously since dropping roughly 20% from its record two months ago. It’s back above where it was when Trump shocked financial markets in April with his wide-ranging tariff announcement on what he called “Liberation Day.”

This may be the shortest sell-off following a shock of heightened volatility on record, according to Parag Thatte, Binky Chadha and other strategists at Deutsche Bank. Typically, stocks take around two months to bottom following a spike in volatility and then another four to five months to recover their losses. This time around, stocks have basically made a round trip in less than two months.

But nothing is assured, of course, and that helped keep trading relatively quiet on Wall Street Monday.

Some of the market’s biggest moves came from the announcement of big buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy Alphawave Semi in a deal valued at $2.4 billion. IonQ, meanwhile, rose 2.7% after the quantum computing and networking company said it agreed to purchase Oxford Ionics for nearly $1.08 billion.

On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3% after saying it would split into two companies. One will get Warner Bros. Television, and other studio brands, while the other will hold onto , TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products.

Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk’s relationship with Trump broke apart, and it rose 4.6% Monday after flipping between gains and losses earlier in the day.

The frayed relationship could end up damaging Musk’s other companies that get contracts from the U.S. government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceX’s expense, rose 2.5%.

All told, the S&P 500 rose 5.52 points to 6,005.88. The Dow Jones Industrial Average slipped 1.11 to 42,761.76, and the Nasdaq composite rose 61.28 to 19,591.24.

In stock markets abroad, indexes were modestly lower in Europe after rising across much of Asia.

Chinese markets climbed even though the government reported that exports slowed in May, growing 4.8% from a year earlier after jumping more than 8% in April. China also reported that consumer prices fell 0.1% in May from a year earlier, marking the fourth consecutive month of deflation.

Stocks rallied 1.6% in Hong Kong and rose 0.4% in Shanghai.

In the bond market, the yield on the 10-year Treasury eased to 4.48% from 4.51% late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumers’ expectations for coming eased a bit in May.

That provides some relief for the Fed, which has been keeping its main interest rate steady as it waits to see how much Trump’s tariffs will raise inflation and how much they will hurt the economy. A persistent increase in expectations for inflation among U.S. households could drive behavior that creates a vicious cycle that only worsens inflation.

Economists expect a report coming on Wednesday to show inflation across the country accelerated last month to 2.5% from 2.3%.

Warner Bros. Discovery to split into two companies, dividing cable and streaming services

SUMMARY:

  • will split into two separate companies.
  • Streaming & Studios will include HBO, Max, and Warner Bros. films.
  • Global Networks will handle , TNT Sports, Discovery, and more.
  • The move follows industry losses from years of cord-cutting.

NEW YORK (AP) — Warner Bros. Discovery will calve off cable operations from its streaming service, creating two independent companies as the number of people “cutting the cord” brings with it a sustained upheaval in the entertainment industry.

HBO, and , as well as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, will become part of the streaming and studios company, Warner Bros. said Monday.

The cable company will include CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the Discovery+ streaming service and Bleacher Report.

Shares jumped 11% at the opening bell.

Warner Bros. Discovery CEO will become serve as CEO of the company that for right now is called Streaming & Studios. Gunnar Wiedenfels, chief financial officer of Warner Bros. Discovery, will be CEO of the cable-focused entity, for now known as Global Networks.

“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” Zaslav said in a statement.

Just days ago Warner Bros. Discovery shareholders in a vote that was symbolic as it’s nonbinding, rejected the 2024 pay packages of some executives, including Zaslav, who will make more than $51 million.

Warner Bros. Discovery said in December that it was implementing a plan in which Warner Bros. Discovery would become the parent company for two operating divisions, Global Linear Networks and Streaming & Studios. That was seen as a preview of the separation announced Monday.

Warner Bros. Discovery was created just three years ago when AT&T spun off WarnerMedia and it was merged with Discovery Communications in a $43 billion deal.

The cable industry has been under assault for years from like Disney, Netflix, and Warner Bros. own HBO Max. The industry is also being pressured by internet plans offered by mobile phone companies. Comcast, which is of nearly equal size to Charter, spun off many of its cable television networks in November, seeing so many customers swap out their cable TV subscriptions for streaming platforms.

Last month Charter Communications offered to acquire Cox Communications, a $34.5 billion merger that would combine two of the top three cable companies in the U.S.

So-called “” has cost the industry millions of customers and left them searching for ways to successfully compete.

The Warner Bros. Discovery split is expected to be completed by the middle of next year. It still needs final approval from the Warner Bros. Discovery board.

Navy, Dominion sign power agreement for Naval Weapons Station Yorktown

Leaders from the Naval Weapons Station Yorktown, which provides weapons and munitions support for the U.S. Navy, and signed an agreement Friday to explore the construction of a “reliable, resilient and responsible” energy source at the base.

The power generated would serve the installation and the surrounding community, according to a spokesperson for the Naval Weapons Station Yorktown. The types of energy sources that could be considered run the gamut from solar facilities to a natural gas power plant to a small modular nuclear reactor, according to a news release received Sunday from the weapons station.

Ed Baine, president of Dominion Energy Virginia, stated Friday that the company will look at sites on or near Navy property for a new power generation asset to maximize land use and infrastructure, the news release stated.

“The men and women of our armed forces have never let this country down, and Dominion … will never let them down,” Baine said at the signing, according to the release. “Together we will build a stronger, more resilient future.”

Last year, Dominion Energy signed a similar agreement with Fort Gregg-Adams, a U.S. Army garrison located near Petersburg. A spokesperson for Dominion Energy did not immediately respond to a request for comment.

The Virginia Department of Energy announced in October that four of seven locations being considered by the Navy for potential shore-based sites are in Virginia. Those sites under consideration are: Naval Air Station Oceana, Naval Support Activity South Potomac, Naval Weapons Station Yorktown and Marine Corps Base Quantico.

Last week, the Board of Supervisors approved a resolution to study possible amendments to its code regarding small modular nuclear reactors. Currently, there are no land use regulations for those facilities.

In October, Amazon.com and Dominion Energy Virginia entered into an agreement to explore potential development of small modular nuclear reactors at North Anna Power Station in Louisa County.

Naval Weapons Station Yorktown is the largest employer in York County. More than 2,400 active duty service members, 1,100 U.S. Department of Defense civilian employees and 530 contractors work at the base, according to the spokesperson. 

 

Molina Healthcare to close Henrico office, laying off 268 workers

Molina , a Fortune 500 company that manages services for and Medicare recipients, is closing its office and laying off 268 workers, it said in a letter notifying the state.

According to the Virginia Works website’s WARN notice page, California-based Molina notified the state May 13 that it will close its facility at 3829 Gaskins Road on June 30 and that all of its staffers there will be laid off as of July 14. The company provides managed health care services under Medicaid and Medicare programs and through state marketplaces, and in Virginia, Molina is one of five managed care organizations (), health plans that include providers that accept Medicaid.

After June 30, will no longer be one of Virginia Medicaid’s MCOs, according to the state Department of Medical Assistance Services. In a memo sent May 29, DMAS’ director noted that the state’s new managed care contract starting July 1 will include existing plans associated with Aetna, Anthem, Sentara and UnitedHealthCare, as well a new plan from Humana. Molina enrollees will be switched to the Humana plan, according to the memo, and will have a 90-day window to change plans if they wish.

The Henrico office’s closing is due to the non-renewal of Molina’s contract with the state, the company’s letter to Virginia Works states. Among the affected employees are care managers, medical directors, analysts, community engagement workers and others. Employees were notified of the office’s May 14, according to the letter.

has been a major topic of conversation on Capitol Hill, as President ‘s “One Big Beautiful Bill” budget reconciliation bill, which has passed the U.S. House of Representatives and is under negotiation in the U.S. Senate, would restructure Medicaid and the health insurance marketplaces, leading to 16 million people nationwide losing their health insurance, according to a nonpartisan Congressional Budget Office report issued last week.

According to U.S. Sens. Mark Warner and Tim Kaine, citing the Joint Economic Committee’s May findings, 262,440 Virginians stand to lose health care coverage under the budget bill, including 161,614 Medicaid recipients.

Molina Healthcare referred to the DMAS memo when contacted Monday for comment.

NASA Langley could lose 672 jobs under Trump’s proposed budget

SUMMARY:
• White House’s proposed FY 2026 budget cuts NASA funding by $6 billion
• 672 jobs could be eliminated at in
• NASA may mothball five of its 12 national wind tunnels
• NASA Langley oversees seven wind tunnels

President Donald ‘s proposed fiscal year 2026 budget would put 672 civil servants at NASA Langley Research Center in Hampton out of work.

If approved by Congress, the White House’s suggested budget would cut the civilian workforce by about 32% across the entire agency, according to a technical supplement released last week.

The president’s suggested budget would cut NASA’s funding from $24.8 billion to $18.8 billion, a roughly 25% decrease. It would be NASA’s smallest budget since FY 1961, according to The Planetary Society, a California-based space advocacy organization.

For FY 2025, NASA Langley has a civilian workforce that’s estimated to be 1,730 employees. The proposed budget would dial that back to 1,058 workers in FY 2026, according to the technical document. Brittny McGraw, a spokesperson for Langley, said Langley does not have information to share outside of budget documents.

If the budget is approved, NASA’s centers, like NASA Langley, will “explore cross-mission retraining opportunities for employees whenever possible, offer targeted buyouts in selected surplus skill areas, and continue to identify, recruit and retain a multi-generational workforce of employees who possess skills critical to the agency,” the document stated.

Additionally, the Trump administration’s proposal aims to take the ax to 41 NASA science projects, according to The Planetary Society, which also noted that cut would equal one-third of NASA’s science portfolio.

, Virginia’s senior Democratic senator, called the cuts “dreadful news” during a Wednesday media call.  “Cutting research, cutting that kind of innovation, is not only bad for Hampton Roads, but is also, candidly, bad for Americans’ competitiveness,” he said.

, D-Newport News, agreed.

“NASA provides invaluable research and resources to explore the planets in our solar system and help us better understand our oceans, weather and climate,” he said in a statement. “And much of this work is being done in Hampton Roads at NASA Langley. The cuts to NASA’s funding and staff proposed by the Trump administration will put the United States behind in our pursuit to advance science and protect our communities from threats like climate change and sea level rise.”

Additionally, the technical document noted NASA Langley will replace its 84-year-old vertical spin tunnel with a new flight dynamics research facility in 2026. In 2022, Langley held a groundbreaking event for what was then a $43 million project.

NASA Langley currently manages seven wind tunnels, located in Hampton, within NASA’s Aerosciences Evaluation and Test Capabilities (AETC) portfolio. Of NASA’s 12 wind tunnels, the proposed budget if passed would put five tunnels into stand-by mode, meaning they would receive minimal maintenance and workforce resources. The locations of the tunnels are not specified in the document.

promised to fight the suggested NASA cuts tooth and nail.

“Why would you hobble NASA programs unless you are trying to advantage Russian and Chinese space programs?” he said in a statement. “These proposed cuts, if the House and Senate pass them, would destroy NASA as we know it, and have a devastating impact on the region’s community and economy.”

During his call with journalists, Warner noted the job cuts at NASA Langley come following news that Jefferson Science Associates are operating on a temporary contract to manage and operate the in Newport News. Their contract was set to expire in May. However, in March, U.S. Energy Secretary Chris Wright approved a 12-month extension. Officially known as The Thomas Jefferson National Accelerator Facility, the Jefferson Lab is a nuclear physics research facility.

“You’ve got the attack at NASA Langley, you’ve got at least a pause of what’s happening at Jeff Labs,”  Warner said. “That is a double whammy for a community that has already experienced other cuts, some of them cuts that are kind of across the board from the DOGE efforts,” he said.  “Remember, Hampton Roads, next to Northern Virginia, has the highest number of both federal employees and government contractors of virtually any place in the country. And this is bad policy. It’s bad for innovation. And it could be a disaster for Hampton Roads.”

The U.S. space program was housed at Langley from 1958 to 1963 until the Johnson Space Center in Houston opened in 1963. In the 1970s, Langley was in charge of the Viking lander missions, which transmitted the first photos and chemical data taken from the surface of the Red Planet.

Kings Dominion has new manager after Six Flags layoffs

SUMMARY:

Kings Dominion has a new head amid a wave of by parent company Six Flags Entertainment.

Jennifer Schofield started as park manager and vice president of in-park revenue for the on May 31, according to Sydney Snow, regional manager of public relations for Kings Dominion and Six Flags New England.

The park’s former head was Bridgette C. Bywater, who had the title vice president and general manager of Kings Dominion. Bywater assumed leadership of the park in January 2021, when former VP and GM Tony Johnson retired. She worked at Cedar Fair Entertainment, the park’s former parent, for 24 years before she came to Hanover County.

Six Flags and Cedar Entertainment completed an $8 billion merger in July 2024. The combined company bills itself as North America’s largest regional amusement-resort operator. It has 27 amusement parks, 15 water parks and nine resort properties across the United States, Canada and Mexico.

Six Flags President and CEO Richard Zimmerman announced a cost reduction plan that included a workforce reduction in the company’s first quarter earnings call.

“As part of our cost reduction plan,” Zimmerman said on the call, “we are engaged in a corporate restructuring process designed to flatten our organizational structure, streamline decision-making and drive cost efficiencies. … Once this initiative is completed, we will have reduced our full-time headcount by more than 10%.”

The company reported $202 million in net revenues in the first quarter, of which $111 million related to the legacy Six Flags operations added in the merger. It had a net loss of $220 million in the first quarter, which included $134 million of net loss from legacy Six Flags operations added in the merger.

Nevertheless, the company expects to reach $120 million in merger cost synergies by the end of the year, six months earlier than previously expected, according to Zimmerman. Six Flags expects its reorganization plan to deliver an additional $60 million in cost savings.

“Our operating plan anticipated some consumer caution given heightened macroeconomic uncertainty,
Zimmerman said in a statement. “Accordingly, we have been taking proactive steps to mitigate these impacts — including refinements to our operating calendars, targeted cost reductions and more aggressive yield management on tickets and in-park products.”

On the earnings call, Zimmerman said the company’s strategy for 2025 included minimizing lower-value operating days, particularly in the first and fourth quarters, and maximizing operating days in the second and third quarters.

A few days prior to the earnings call, on May 1, Six Flags announced it would close Six Flags America and Hurricane Harbor in Bowie, Maryland, after the 2025 operating season.

“The vice president and general manager position at Kings Dominion was eliminated, along with the general manager and park president positions at all Six Flags Entertainment Corp. parks” as part of the workforce reduction effort, Bywater said in a statement to Virginia Business.

“I was offered the opportunity to continue my employment in a different role but declined,” Bywater said. “I wish nothing but success for the company and look forward to joining the Kings Dominion season passholder community.”

Kristin Fitzgerald, corporate director of public relations for Six Flags, said in a statement: “Six Flags Entertainment recently moved to a new regional operating structure,” which included centralizing corporate functions and making “some changes to the roles and responsibilities of park leaders, sharpening the parks’ focus on execution, the guest experience and associates.

“Some park general managers and presidents had an opportunity to move into different roles, while others left the company to pursue other opportunities or retire. These and other changes underway have created new opportunities for the next generation of leaders within the company,” she continued.

Schofield has 34 years of experience in the industry, according to Fitzgerald.

Schofield was most recently vice president of retail at Cedar Point Amusement Park in Ohio, according to her LinkedIn profile. Before that, she was director of merchandise and games at Kings Dominion. Schofield previously served as director of merchandise and games for Worlds of Fun in Missouri, and prior to that, as merchandise manager at Carowinds, which straddles the state line between the Carolinas.

2025 marks Kings Dominion’s 50th anniversary. In January, the park announced a lineup of events to celebrate the milestone, including new live shows and a street party. “A Golden Summerbration” is running from late May to early August.

Kings Dominion is not holding its annual December-long WinterFest season. The theme park did not include the season in its 50th anniversary events list, released in January.

AESC halts $1.6B EV battery plant over policy fears

SUMMARY:

  • paused construction on $1.6B EV battery factory
  • Plant was planned to supply batteries for electric BMWs
  • Gov. McMaster cites federal EV incentive and tariff issues
  • Project promised 1,600 jobs in Florence, S.C.
  • Company pledges to restart, but gives no timeline

COLUMBIA, S.C. (AP) — A Japanese company has halted construction on a $1.6 billion factory in to help make batteries for electric BMWs, citing “policy and market uncertainty.”

While Automotive Energy Supply Corp. didn’t specify what those problems are, South Carolina’s Republican governor said the company is dealing with the potential loss of federal tax breaks for electric vehicle buyers and incentives for EV businesses as well as tariff uncertainties from ‘s administration.

“What we’re doing is urging caution — let things play out because all of the these changes are taking place,” Gov. Henry McMaster said.

AESC announced the suspension in construction of its plant in Florence on Thursday,

“Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,” the company’s statement said.

AESC promised to restart construction, although it didn’t say when, and vowed to meet its commitment to hire 1,600 workers and invest $1.6 billion. The company said it has already invested $1 billion in the Florence plant.

The battery maker based in Japan also has facilities in China, the United Kingdom, France, Spain and Germany. In the U.S., AESC has a plant in Tennessee and is building one in Kentucky. The statement didn’t mention any changes with other plants.

The South Carolina plant is supposed to sell battery cells to , which is building its own battery assembly site near its giant auto plant in Greer. BMW said the construction pause by AESC doesn’t change its plans to open its plant in 2026.

AESC has already rolled back its South Carolina plans. They announced a second factory on the Florence site, but then said earlier this year that their first plant should be able to handle BMW’s demand. That prompted South Carolina officials to withdraw $111 million in help they planned to provide.

The company is still getting $135 million in grants from the South Carolina Department of Commerce and $121 million in bonds and the agency said a construction pause won’t prompt them to claw back that offer.

South Carolina is investing heavily in . Volkswagen-owned Scout Motors plans to invest $2 billion and hire 4,000 people for a plant to build its new electric SUVs scheduled to open in 2027.

The state has for decades made big bets on foreign manufacturers like BMW, Michelin and Samsung that have paid off with an economic boom this century, but there is uneasiness that ‘s flirtation with high might stagger or even ruin those important partnerships.

McMaster told people to relax as state and business leaders are talking to Trump’s administration and things will work out.

“I think the goal of the president and the administration is to have robust economic growth and prosperity and there is no doubt there has to be changes made in our international trade posture and President Trump is addressing that,” McMaster told reporters Thursday.