The growing demand for electricity to power AI data centers is giving new life to old coal plants in the US. Many of these plants are being repurposed into hubs for renewable and natural gas-powered energy generation, driven by the projected surge in US electricity demand of up to 60% through 2050.
Companies like Xcel Energy are at the forefront of this trend, converting old coal plants into gas-fired power plants or renewable energy facilities. For instance, Xcel is retiring its Sherburne County coal plant in Minnesota and replacing it with solar, wind, and battery power to support a data center hub. This approach not only reduces the environmental impact of the old coal plant but also provides a reliable source of energy for the data centers.
Natural gas is playing a key role in meeting the immediate energy demands of AI data centers, with companies like EQT Corporation supplying gas to projects like the Homer City Energy Campus and the Shippingport Power Station, both repurposed from former coal facilities. Some projects are also incorporating renewable energy sources like solar and wind power, with Xcel Energy planning to build 2 gigawatts of new wind and solar power in the Texas Panhandle.
Repurposing old coal plants offers several benefits, including faster deployment and increased efficiency. These plants often have existing grid interconnections, allowing new projects to bypass long connection queues and accelerate deployment. Additionally, converting coal plants to gas-fired or renewable energy facilities can reduce carbon emissions and help meet growing energy demands sustainably.
Innovative projects like Bill Gates' TerraPower are also being developed, with a next-generation nuclear plant slated to open by 2030 utilizing the interconnections of the Naughton coal and gas plant. As the demand for electricity continues to grow, the repurposing of old coal plants is likely to play a significant role in meeting the energy needs of AI data centers.
