AI Brings Back Coal
AI Brings Back Coal
There is no consensus on how much electricity AI server farms will use over the next decade. Almost all experts believe the percentage increase will be between large and huge. Without the necessary grid and electricity generation capacity, the US will face the problem of who has access to electricity and who does not. Some residential customers are already seeing sharp increases in their bills.
Coal has been on its way out as a significant source of electricity in the US for years. In 2022, 513 million short tons of coal were consumed in the United States. Almost all of this was for electricity generation. Coal supplied about 10% of the nation’s energy needs. That was the lowest percentage since 1949. Energy-hungry AI data centers will reverse the trend. Coal, the dirtiest of all fossil fuels, is making a comeback. If data center use grows at the rate of most forecasts, coal’s return will be long-lived.
Trump Helps The Industry
As a means to meet AI electricity demand, President Trump has lent a hand to the industry. The Department of Energy has cleared a path for coal plants that were scheduled to close to remain open for at least several years. Opponents of these plans say that the old coal installations are too expensive to run to get a strong return on the investment to keep them operating.
There are about 200 coal-fired plants still operating in America. If renewables cannot come online at expected speeds, the AI industry will need to encourage utilities to turn to alternatives. Among the few options in a rapid electricity utility expansion is a return to coal as a major source of energy.
Because of AI, America’s energy past is becoming its future.
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