US coal-fired power plants will continue to operate longer than initially planned, thanks in part to a surge in electricity demand from artificial intelligence (AI) and data center activities. The Trump administration is working to defer coal plant closures and possibly reopen shut plants to ensure a stable electricity supply amid rising demand.
President Donald Trump has authorized the administration to boost US coal power generation in an effort to counter China’s economic advantage due to its constant rise in Chinese coal power plants. However, analysts say it will be natural gas that is the biggest winner of the AI boom, not coal.
Coal currently accounts for 15-16% of US power generation, but its share has been declining in recent years as many coal-fired power plants have shut down and wind and solar power have taken over market share. The Administration is considering emergency authority to resurrect closed coal power plants and stop others from closing, Interior Secretary Doug Burgum said.
Despite this, a major renaissance for coal is unlikely, according to US Energy Secretary Chris Wright. “The best we can hope for in the short-term is to stop the closure of coal power plants,” he said.
Some generators are delaying coal capacity retirements, with Georgia Power proposing extended operation of certain units through at least 2034. However, analysts say it’s unlikely that new coal plants will be constructed during the Trump administration.
The Energy Information Administration (EIA) predicts that US coal generation will rise by 6% in 2025 due to higher natural gas prices and increased demand for electricity. Natural gas is expected to capture most of the growth, with AI-related demand accounting for about two-thirds of the incremental power demand in the country.
Source: https://oilprice.com/Energy/Natural-Gas/AI-Boom-Favors-Natural-Gas-Over-Coal.html