Publication date:
April 9, 2025
Trump's Coal Revival Plan for AI Data Centers Sparks Energy Debate
Trump's executive order aims to revive the US coal industry to power the growing demand for AI, labeling coal as a 'critical mineral' and promoting its use in data centers.
Energy
President Donald Trump has signed an executive order aimed at revitalizing the US coal industry, specifically to meet the increasing energy demands of artificial intelligence (AI) data centers. The order, which labels coal as a "critical mineral," seeks to extend the operational life of older coal plants that were scheduled for retirement.
The White House announcement highlights plans to promote coal and coal technology exports, facilitate international agreements for US coal, and accelerate coal technology development. Trump, surrounded by miners at the White House, declared that the order "slashes unnecessary regulations that targeted beautiful, clean coal."
This move comes as the AI boom drives up electricity demand across the United States. The International Energy Agency estimates that data centers currently consume 2% to 3% of the world's energy, a figure expected to grow with the widespread adoption of AI technologies. Coal supporters argue that it can provide a stable energy source to meet the rising power requirements of data centers.
However, the plan faces significant challenges. Critics point out that natural gas, wind, and solar are more cost-effective and environmentally friendly alternatives to coal. The US Energy Information Administration projected in February that 93% of new electric-generating capacity added to the US grid this year is expected to come from solar, wind, and batteries, potentially making coal less competitive.
The administration's push for coal contrasts with previous commitments from tech giants like Google, Meta, and Amazon to use low-carbon renewable energy sources for their data centers. However, much of the electricity needed for these operations has still been generated by fossil fuels.
Environmental groups have voiced strong opposition to the plan. Kit Kennedy, managing director for power at the Natural Resources Defense Council, stated, "Coal plants are old and dirty, uncompetitive and unreliable. The Trump administration is stuck in the past, trying to make utility customers pay more for yesterday's energy. Instead, it should be doing all it can to build the electricity grid of the future."
As the US seeks to strengthen its AI ecosystem and encourage technology development domestically, the administration is positioning coal as a solution to power the AI boom. This move aligns with Trump's repeated comparisons to China, which has increased both coal power plant production and investment in renewables, gaining economic advantages in the AI race.
The executive order sets the stage for a complex debate on the future of energy in the AI era, balancing economic interests, technological advancement, and environmental concerns.
The White House announcement highlights plans to promote coal and coal technology exports, facilitate international agreements for US coal, and accelerate coal technology development. Trump, surrounded by miners at the White House, declared that the order "slashes unnecessary regulations that targeted beautiful, clean coal."
This move comes as the AI boom drives up electricity demand across the United States. The International Energy Agency estimates that data centers currently consume 2% to 3% of the world's energy, a figure expected to grow with the widespread adoption of AI technologies. Coal supporters argue that it can provide a stable energy source to meet the rising power requirements of data centers.
However, the plan faces significant challenges. Critics point out that natural gas, wind, and solar are more cost-effective and environmentally friendly alternatives to coal. The US Energy Information Administration projected in February that 93% of new electric-generating capacity added to the US grid this year is expected to come from solar, wind, and batteries, potentially making coal less competitive.
The administration's push for coal contrasts with previous commitments from tech giants like Google, Meta, and Amazon to use low-carbon renewable energy sources for their data centers. However, much of the electricity needed for these operations has still been generated by fossil fuels.
Environmental groups have voiced strong opposition to the plan. Kit Kennedy, managing director for power at the Natural Resources Defense Council, stated, "Coal plants are old and dirty, uncompetitive and unreliable. The Trump administration is stuck in the past, trying to make utility customers pay more for yesterday's energy. Instead, it should be doing all it can to build the electricity grid of the future."
As the US seeks to strengthen its AI ecosystem and encourage technology development domestically, the administration is positioning coal as a solution to power the AI boom. This move aligns with Trump's repeated comparisons to China, which has increased both coal power plant production and investment in renewables, gaining economic advantages in the AI race.
The executive order sets the stage for a complex debate on the future of energy in the AI era, balancing economic interests, technological advancement, and environmental concerns.
