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Trump boosts coal to feed data centers that are energy hungry

Executive Orders to Boost the Coal Industry

Trump Administration pulls back plants from retirement

The United States has ceased its efforts to reduce coal consumption

By Carey L. Biron

Then, the Trump administration issued an order to keep the plant operating, citing a regional energy crisis caused, in part by the retirements of coal and natural gas power plants.

Trump issued executive orders to boost the coal industry. These were in response to the rapidly increasing electricity demand for new data centres that run artificial intelligence tools.

The rebound is a resupply of coal for the JH Campbell plant, located in West Olive, Michigan. Its coal pile once covered three football fields.

It was just a tiny dollop, said Jan O'Connell. She is a senior energy issue organizer at the Sierra Club Michigan Chapter.

Trump has made a decision to stop decades of efforts to wean America off coal. The move also includes a halt to programs that help communities in coal-producing areas transition to alternative industries.

The Trump administration mandated, shortly after the Campbell order was issued, that a Philadelphia gas plant which had been scheduled to close continue operating. Both orders were 90-day emergencies that could be renewed.

According to Sierra Club's tracking, in the last two decades, more than 75 percent of U.S. power plants have retired coal or plan to retire them by 2030.

O'Connell expressed concern that the Campbell Plant order could create a precedent.

She said: "We fear it will be a domino-effect, that they'll go from coal plants to coal plants and possibly erase their retirement dates."

Ben Dietderich, Department of Energy Press Secretary, explained that the administration views the move as a way to ensure the country has enough energy.

Dietderich stated that "American grid operators have warned for years about the dangers of decommissioning power sources like coal plants, which would compromise our grid system's reliability."

This administration is committed in ensuring Americans can access reliable, affordable and secure energy, independent of whether the sun is shining or the wind is blowing.

According to Clean Energy States Alliance - a coalition of energy agencies from states - Illinois, Georgia and West Virginia are among the states that have delayed retirement of coal plants. Other states may follow suit.

LONG DECLINE

According to the International Energy Agency (IEA), data center energy consumption is expected to increase by 12% between 2017 and 2024, and double by 2030. More than half of this energy demand will come from AI data centres.

Trump declared U.S. dominance in global AI a priority for his administration. He cited the technology, and its energy requirements as a national security issue.

Experts say that it's unclear how much the new orders can stop the decline of the coal industry.

Daniel Bresette is the president of Environmental and Energy Study Institute in Washington, which is a Washington-based think tank. In 2014, coal produced 39 percent of U.S. electricty. By last year, that figure had dropped to only 15 percent.

He said that the Trump Administration orders, combined with the rapid expansion of data centers which are energy-hungry, could help boost the industry.

He said, "We are just unsure how much."

In an email, White House Assistant Press Secretary Liz Huston stated that Trump's actions "fully unleash American energy dominance" and are "driving down costs and fuelling economic prosper".

The coal industry claims that the move has brightened their prospects.

Emily Arthun is the chief executive officer of the American Coal Council. She said that the industry group was "very optimistic" about the economic impact of the executive order, which has "already set the stage for regulatory changes."

She said that coal is essential to meet the needs of AI and data centers.

The response of major tech companies to a greater role for coal as a power source in their data centers is unclear.

According to the Clean Energy Buyers Association (an industry group which includes Google, Meta, and Microsoft), many major tech companies are working towards net zero emissions and sustainability. The demand for clean energy, such as solar, will increase to 275 gigawatts in 2035.

This would be enough to power over 200 million American average homes.

Many industry groups and large companies refused to comment on the possibility of using coal-fired power to power their data centers or didn't respond to questions.

'FALSE HOPE'

Environmental experts have warned that federal efforts to boost the coal industry overlook the communities who are trying to get beyond the declining industry.

Jason Walsh, Executive Director of BlueGreen Alliance (labor and environmental groups) said, "Coal communities require investment and support as markets shift to cleaner and cheaper forms of energy."

"What Trump gives them is denial and false hope, as well as... more pollution."

He said that the budget negotiations concluded by Congress this month have gutted tax credits for clean energy. This includes a bonus to encourage investments in "energy communities" as well as green banks for investing in sustainable economic strategies in coal communities.

Walsh stated that "people in coal communities are now aware there is no turning back."

(source: Reuters)