On the eve of a congressional hearing featuring prominent tech executives pressing for enhanced energy resources to fuel the burgeoning artificial intelligence sector in the United States, former President Donald Trump issued an executive order geared towards boosting coal production.
This executive order, part of a broader package aimed at revitalizing the coal industry, includes initiatives to open federal lands for coal mining, classify coal as a critical mineral, and leverage emergency powers to loosen environmental restrictions associated with coal extraction. The order specifically targets the energy needs of AI data centers, with Trump referring to the nation’s “beautiful clean coal resources.” It mandates studies by the Departments of Commerce, Energy, and Interior to assess the availability and suitability of coal-powered infrastructure for AI data centers, in addition to evaluating the economic viability of such developments.
During the signing ceremony for the four executive orders, Trump emphasized the urgent need for energy in the face of advancing technology, stating, “We need to do the AI, all of this new technology that’s coming online. We need more than double the energy, the electricity, that we currently have.”
The executive order illustrates a straightforward approach to a pressing challenge: meeting the substantial power demands generated by the increasing integration of AI technology into daily life. The following day’s hearing at the House Energy and Commerce Committee highlighted the immense energy requirements necessary for supporting the infrastructure of AI technology, featuring testimonies from industry leaders, including former Google CEO Eric Schmidt and Scale AI CEO Alexandr Wang, who underscored the sector’s growing need for stable and reliable energy sources.
Schmidt remarked on the significant energy demand in his opening statement, asserting, “We need energy, and the numbers are profound. We need energy in all forms. Renewable, nonrenewable, whatever. It needs to be there, and it needs to be there quickly.” A study by the Electric Power Research Institute referenced during the hearing projected that by the end of the decade, data centers could account for approximately 9.1 percent of the nation’s total energy consumption.
Bhatia, in support of his testimony, cited another research effort which indicated that energy consumption may surge by 15 percent in the next five years as a consequence of the growing demands of AI technology. He cautioned that the U.S. could lose its edge in AI development if it does not adopt a diverse energy strategy to keep costs down.
The executive order directs the Commerce, Energy, and Interior Departments to conduct studies determining “where coal-powered infrastructure is available and suitable for supporting AI data centers.”
Despite Trump’s ongoing support for coal—as evidenced by his previous efforts to prevent the closure of coal plants—the American coal industry has experienced a significant decline over the past few decades. As consumers increasingly favor alternative energy sources such as natural gas and renewables, coal’s share of the U.S. energy supply has fallen to 15 percent from nearly 50 percent in 2011. Currently, only about 400 coal plants are operational across the nation, a decrease from 780 two decades ago, with almost half of them facing retirement in the coming years. Although some plants have extended their operational lives due to rising energy demands, experts caution that this will not suffice to reverse the long-term decline of coal.
Relying on coal may present ethical dilemmas for leaders in the AI sector, especially given the industry’s historical advocacy for sustainable energy solutions. OpenAI CEO Sam Altman, for example, has prominently supported a shift towards green energy for powering data centers, exploring investments in solar, nuclear fusion, and carbon capture technologies to offset emissions. However, with the ongoing trade tensions under Trump’s administration potentially threatening the tech industry’s future, AI companies might find themselves reconsidering their stance on coal in order to navigate the evolving landscape of energy demands. Addressing the industry’s energy needs while balancing the push for sustainability may prove to be a challenging path forward for AI leaders.
