AI demand delays U.S. coal plant closures

Some U.S. coal-fired power plants will operate longer than expected. This shift is not due to President Trump’s support for coal, but rather to rising electricity demand driven by the AI and data center boom. As demand grows, some utilities are delaying plans to retire coal plants. Despite this, analysts believe natural gas will benefit most from the increased demand. The Trump Administration is exploring ways to keep coal plants open, aiming to counter China's energy production. This week, Trump claimed on social media he would authorize efforts to boost coal energy. Currently, coal provides about 16% of U.S. power, but its share has been decreasing. Cheaper natural gas and various environmental regulations have contributed to coal's decline. Energy Secretary Chris Wright stated that while they may pause some coal plant closures, a large resurgence for coal seems unlikely. According to the Energy Information Administration (EIA), U.S. power generators plan to retire 12.3 gigawatts of capacity, with 66% from coal in 2025. Some companies, like Georgia Power, are extending the life of their coal and natural gas units due to expected demand growth. Even with potential short-term gains for coal, new investments in coal plants are not anticipated. Analysts suggest that coal might see a temporary increase in generation if natural gas prices rise. In the coming years, electricity demand is expected to increase, with natural gas poised to meet most of this growth.