The US government expects the majority of the country’s coal-fired power plants to delay retirement to help meet energy demand from the AI data center sector.

Speaking at a Reuters event, Energy Secretary Chris Wright stated: "I would say the majority of that coal capacity will stay online."

Currently, the US has approximately 190GW of coal-fired capacity operational; however, several plants have been slated for retirement over the next few years.

The government indicated that it was prepared to utilize emergency powers to extend the lifespan of coal-fired power plants. Wright went on to say that the administration had been in contact with many utilities across the US and expects that the majority of coal-fired plants slated for retirement over the next few years will delay closure.

In August, Wright enacted emergency powers directing Consumers Energy and the Midwest grid operator to keep the J.H. Campbell coal-fired power plant in West Olive, Michigan, running through November. Wright had already ordered the plant to continue operating in May, using an almost century-old law to enforce the ruling.

Wright said during the Reuters event that more plants should expect similar orders. "Absolutely, absolutely. Yeah, that's not the only one," Wright said. Wright also stated that the US would strive to maximize the benefits of the existing grid by operating backup generators and standby power plants concurrently. Doing so would likely result in a surge of emissions, as backup generators are mostly run off diesel, which is highly polluting.

Several utilities have already extended the life of their coal-fired plants this year, citing data center demand as a major driver. A recent example is Southern Company, which in February announced its intention to extend the life of three plants with a combined capacity of 8.2GW from 2028 to 2035.

The statements are a continuation of a pro-coal policy first announced by President Trump in April, when he signed a series of executive orders to “reinvigorate” the country’s coal sector to meet the surging energy demand of AI data centers.

The orders included edicts to “remove federal regulatory barriers that undermine coal production, encouraging the utilization of coal to meet growing domestic energy demands, increasing American coal exports, and ensuring that Federal policy does not discriminate against coal production or coal-fired electricity generation.”

The support for coal is very much in contrast to the fuel's steady decline over the past quarter-century. The fuel share in the US energy mix has fallen to around 15 percent, compared with 2001 levels, where it generated 51 percent of the US’ energy.

Other forms of energy have subsequently overtaken coal as a cheaper and more efficient alternative. Low-cost natural gas derived from shale deposits has begun to dominate the energy mix and is seen as a more scalable option for data center developers. Renewable sources, too, have become a cheaper and more widely available alternative, with wind and solar now generating more electricity than coal across the US, according to a recent report from think tank Ember. Solar generation across the US increased by 64TWh, wind by 32TWh, while coal dropped by 22TWh.

Solar power has also become a cheaper alternative to coal in recent years. In 2023, research from Energy Innovation indicated that 99 percent of existing US coal plants are more expensive to run than new solar or wind power.

However, despite this, the Trump administration has maintained its assault on wind and solar projects. In addition to the “One Big Beautiful Bill,” which slashed tax breaks for new renewable energy projects, earlier this week, Wright announced that the Department of Energy (DOE) was to “return more than $13 billion in unobligated funds” that Congress had earmarked to fund clean energy projects.

"The American people elected President Trump largely because of the last administration’s reckless spending on climate policies,” Wright said in a statement. “By returning these funds to the American taxpayer, the Trump administration is affirming its commitment to advancing more affordable, reliable, and secure American energy and being more responsible stewards of taxpayer dollars."

The impact on the data center sector could be considerable, with many operators tied to long-term renewable energy supply agreements to power their operations. The DOE did not specify what projects would see their funding rescinded. DCD has contacted the DOE for further information.