Donald Trump's recent executive order aims to boost the US coal sector to meet the growing energy demands of AI data centers. Trump's claim that the future of AI is powered by coal has sparked debate, despite coal's decline in the US energy mix. In 2001, coal powered 51% of the US electricity grid, but that number has dropped to around 15%.
The executive order directs federal agencies to identify coal resources on federal lands, lift regulatory barriers to coal mining, and prioritize coal leasing. This move is seen as an effort to revive the coal industry, which has struggled due to cheaper alternatives like natural gas and renewable energy.
The order also permits older coal-fired plants to continue operating, citing data center demand as a major driver. However, this decision has raised concerns about the environmental impact, as coal is a dirtier energy source compared to natural gas and renewables.
AI data centers are expected to consume up to 9% of the US's electricity by 2030, driving up power demands. Tech companies are exploring various energy options, including natural gas, nuclear power, and renewable energy. Some companies are even repurposing old coal sites into data center facilities, like the 3,200-acre Homer City site in Pennsylvania, which will be converted into a natural gas-powered data center campus.
The debate surrounding Trump's executive order highlights the complexities of meeting the energy demands of AI data centers while balancing environmental concerns. As the demand for energy continues to grow, the US energy landscape is likely to undergo significant changes in the coming years.
