On July 31, 2026, US utilities are scrambling to keep coal-fired power plants active amid soaring electricity needs from AI data centers. Rather than retiring, at least 15 coal plants have had their closures postponed to meet this growing demand.
Coal generation in the US jumped 13% in 2025, pushing power sector CO2 emissions up 4%, twice the economy-wide rise. AI data centers alone now consume about 4.4% of the nation’s total electricity, with their appetite expected to double or even triple by 2030.
In 2023, US data centers used around 176 terawatt-hours of electricity. Projections show this could surge to as much as 580 TWh within the next few years comparable to the entire energy use of France. Their electricity sources include over 40% natural gas, roughly 24% renewables, 20% nuclear, and a notable 15% from coal.
This renewed reliance on coal contrasts strongly with a decade-long decline and forced the Department of Energy to issue emergency orders in 2025, instructing plants slated for shutdown to stay operational. Utilities now compete fiercely to secure reliable power, with the Southern Company CEO declaring, “We will extend coal plants as long as we can.”
The impact goes beyond AI. Crypto miners face pressure as data centers outbid them for affordable power, locking in long-term deals and even acquiring power plants, squeezing energy supply for other industries. The same competitive dynamics that have challenged bitcoin miners already are shaping up to become more intense.
This content is for informational purposes and does not constitute financial advice.
