Trump Bets Big on Coal in Push to Power AI Boom
The Trump administration has launched its most aggressive effort yet to revive the U.S. coal sector, announcing a sweeping package that opens 13.1 million acres of federal land for new mining leases and allocates $625 million to upgrade and extend the life of coal-fired power plants.
The move comes as electricity demand surges from AI data centers, digital infrastructure, and efforts to bring back U.S. manufacturing, with the administration arguing that coal remains essential to meeting baseload power needs and keeping energy prices competitive for households and industry.
Wright: Coal is “Critical”
Energy Secretary Chris Wright described coal as the “backbone of steel and cement production” and a vital part of the grid. “For years, it’s been under assault,” he said, pointing to regulatory pressure under the Obama and Biden administrations. “We’re stopping the strangulation. Coal’s got a long future … as long as the lives of anyone alive today.”
The new policies include recommissioning shuttered coal facilities, funding pollution-control retrofits, and easing restrictions on exports. Wright also linked coal to the broader technology race, arguing that without it, the U.S. risks falling behind in powering the infrastructure needed for artificial intelligence and advanced manufacturing.
Where Coal Stands in the Mix
Coal’s share of U.S. electricity generation has been in long-term decline, falling from 50% in 2000 to 14.9% in 2024, according to the Energy Information Administration. Natural gas now dominates at 42.5%, while renewables provide 24.1% and nuclear 17.8%.
Despite this trend, coal remains regionally significant in the Midwest and Appalachia, where it supports local economies and provides steady output to the grid. Globally, coal still supplies more than a quarter of electricity, and the administration argues the U.S. should expand exports from its large reserves.
Political and Environmental Backdrop
Critics say doubling down on coal will raise emissions, worsen air and water pollution, and undermine U.S. climate commitments. Environmental groups argue that directing federal support toward aging plants risks locking in decades of carbon output at a time when other nations are accelerating the shift to renewables.
Trump officials counter that past climate policies have raised prices and exported industry overseas. “Net zero has meant higher costs, deindustrialization, and reliance on China,” Wright said, echoing Trump’s own remarks that green policies amount to “the greatest con job ever perpetrated.”
A Fork in the Road
The coal push marks a sharp reversal of federal policy after years of incentives for clean energy. Its impact will depend on how quickly leases are taken up, how utilities respond to funding offers, and how courts handle the legal challenges that are likely to follow.
For now, Trump is betting that coal can help secure his vision of “energy dominance”—a strategy that pits traditional fuels against a fast-changing global energy landscape.