Trump Administration Pushes Coal Plant Lifelines to Power AI Growth

The Trump administration expects most U.S. coal-fired power plants to delay retirement in order to meet the soaring electricity demand from artificial intelligence, Energy Secretary Chris Wright said Thursday. The move is part of a broader strategy to boost power output by keeping aging coal plants online, expanding nuclear energy, and running backup generators continuously.

“Energy sobriety has returned to Washington,” Wright said at a Reuters event, framing the policy as a way to avoid blackouts and shield Americans from high utility costs. He confirmed the government is prepared to use emergency powers under the Federal Power Act to extend plant lifespans. Recent orders have already kept coal, gas, and oil-fired plants in Michigan and Pennsylvania running despite plans for closure.

The administration is also betting big on nuclear power, fast-tracking permits and supporting the restart of shuttered facilities, including one at Three Mile Island in Pennsylvania, now slated to supply Microsoft data centers.

U.S. electricity demand is projected to hit record highs this year and next, with AI data centers driving rapid consumption growth. Wright noted China is aggressively building coal plants to power its own AI race, warning that U.S. competitiveness depends on securing similar energy supplies.

Meanwhile, the Department of Energy has opened federal land for new power plants and data centers, receiving over 300 inquiries. Critics argue the strategy doubles down on fossil fuels while sidelining climate goals, but the administration insists reliability and affordability come first.

Extending coal-plant life to power AI data centres will draw increasing investor and community scrutiny - hyperscalers with 100% renewable pledges are going to have to explain the delta between commitment and actual grid mix. Our climate-action and ESG-strategy teams help tech clients and their offtakers structure credible RE100 and Scope 2 narratives that hold up despite grid-fuel volatility.