In a bold move blending traditional energy with cutting-edge technology, President Donald Trump has signed an executive order to revitalize the U.S. coal industry. The initiative is framed as a strategic effort to meet the increasing energy demand of AI, a sector experiencing explosive growth.
As the nation grapples with balancing innovation, energy security, and environmental responsibility, Trump’s decision to raise questions about the future of coal in the digital world.
What’s in Trump’s Coal Revitalization Plan?
The executive order by Trump outlines a series of measures to boost coal production. The order also aims to position it as a key energy source to power artificial intelligence infrastructure. The core elements of the plan are:
- Relaxed Environmental Regulations: The order calls for scaling back certain EPA regulations that already limit coal mining and coal-fired power plant operations. Thus, this initiative makes it easier for energy companies to ramp up coal-based output.
- Incentives for Coal-Driven Energy Projects: The project proposes financial incentives and tax breaks for companies using coal to power data centers, AI research facilities, and high-tech industries.
- Federal Support for Coal Technology R&D: The plan includes funding for “clean coal” technologies. The plan aims to modernize coal plants and omit emissions while maintaining outputs.
- Streamlined Permitting for Coal Operations: To accelerate production, the plan directs federal agencies to fast-track the permitting process for new coal mines and related infrastructure.
- Linking Coal to National AI Strategy: The executive order frames coal as an important energy backbone for the AI revolution. Thus, positioning fossil fuels as essential to technological competitiveness on the global stage.
AI Energy Surge: Why AI Needs More Power?
The proliferation of AI technologies has led to a substantial increase in data center energy consumption. In recent years, the data centers generated approximately 4.4% of total U.S. electricity usage. Later, this figure is projected to rise from 6.7% to 12% by 2028.
Globally, AI-specific data centers are exposed to quadruple their energy consumption by 2030. Thus, it will surpass the energy used by traditional industries such as steel and cement manufacturing.
Furthermore, in response to these demands, Trump’s executive order aims to bolster coal production by opening federal lands to mining and relaxing environmental regulations. Such an initiative seeks to provide a stable and substantial energy source to support the AI sector expansion.
However, it is important to note that coal’s share of U.S. electricity generation is declining, reaching an all-time low of 16.1% in 2024. The decline reflected broader shifts towards more sustainable energy sources.
The push to use coal for AI’s energy requirements raises environmental concerns. Despite advancements in clean coal technologies, coal-fired power plants remain a significant contributor to greenhouse gas emissions.
Last year, U.S. coal production decreased by 9.1% compared to previous years, indicating a continued move away from coal reliance. Thus, balancing the energy needs of AI with environmental sustainability remains a critical challenge even in 2025.
Trump’s Energy Strategy
President Donald Trump signed executive orders to renew the coal industry, invoking emergency powers and stopping the leasing moratorium. Trump took such a step despite increasing environmental concerns and declining coal use in favor of cheaper energy. Let’s learn about key provisions of Trump’s executive order.
- Designation of Coal as a Critical Mineral: The orders instructed the Chair of the National Energy Dominance Council to classify coal as a “mineral” under Executive Order 14241, thereby granting it all associated benefits.
- Expansion of Coal Mining on Federal Lands: Federal agencies are directed to identify and prioritize coal resources on public lands, lifting existing barriers to coal mining and leasing.
- Extension of Coal Plant Operations: The Department of Energy was tasked with developing a process to issue emergency orders to keep coal-fired power plants operational in regions with grid reliability issues.
- Legal Challenges to State Climate Laws: The Department of Justice was instructed to challenge state-level climate regulations that were deemed to obstruct fossil fuel development.
After Trump signed the executive orders to revive the coal industry, the industry and environmental experts reacted to them. While coal industry advocates supported the executive orders, citing economic benefits and energy security, environmental exports opposed the move. They argued that it contradicted the global efforts to reduce carbon emissions and hindered progress toward sustainable energy solutions.
Can Coal Meet the Demands of America’s AI Revolution?
As artificial industry reshapes the American economy, it consumes enormous amounts of energy. Data centers powering AI models, autonomous systems, and real-time analytics tools require vast and consistent electricity. This raises the question of whether the coal industry can meet the demands, despite being a declining energy source.
1. The Case for Coal: Base-Load Reliability
Coal’s key advantage lies in its ability to provide base-load power. It indicates that it can generate electricity continuously, regardless of weather or time. Such reliability is essential for AI infrastructure, which must operate 24/7 with less downtime.
Thus, Trump’s executive order taps into this reliability, calling for the reactivation of shuttered coal plants and increased mining on federal lands. It ensures a steady energy supply for the rapidly growing AI sector.
2. The Scale of AI’s Energy Needs
- AI-driven data centers in the U.S. consumed around 4.4% of total electricity back in the year 2023. But now it is projected to consume up to 12% by 2028, according to the Department of Energy.
- A single AI training run for a model reportedly uses as much electricity as 100 U.S. homes consume in a month.
- Globally, data centers are expected to use more than 1000 terawatt-hours (TWh) annually by 2030, which is more than Japan’s electricity consumption.
3. The Limits of Coal in 2025
Despite coal being a historically dominant industry and its strengths, coal faces a few hurdles:
- Declining Role in Power Mix: Coal usage accounted for just 16.1% of the U.S. electricity generation in 2024, down from over 50% in 2005.
- Aging Infrastructure: Many coal plants are decades old and they are very costly to maintain.
- Environmental Impact: Coal remains one of the largest contributors to greenhouse gas emissions, undermining clean energy goals and climate commitments.
Conclusion
To sum up, President Donald Trump signed executive orders to revive the declining coal industry. This step of Trump is considered bold, and controversial in the intersection of energy policy and technological advancement. As the AI industry demands increased power consumption, coal is placed as a reliable and immediate solution, despite its environmental impacts.
About The Author
