Trump administration extends coal plant lifespans as AI giants drive record US electricity demand

The administration of US President Donald Trump expects most of the nation's coal-fired power plants to delay retirement to help deliver the vast amount of electricity needed to fuel artificial intelligence, Energy Secretary Chris Wright told Reuters on Thursday.

Keeping those often half-century-old coal plants running is part of a broader strategy to increase the country's power output that will also include boosting nuclear energy and allowing backup power plants to operate around the clock.

The administration has made expanding energy production a top priority while rejecting concerns about climate change, which Trump told the United Nations this week amounted to a global "con job."

"Energy sobriety has returned to Washington, D.C. Our focus is on Americans and the price of utility and avoiding blackouts," Wright said at a Reuters Newsmaker event. "We've got to stop existing firm capacity from retirement."

The government had been in discussions with many utilities nationwide and expects the majority of the several dozen US coal plants nearing retirement to delay closure, he said.

"I would say the majority of that coal capacity will stay online," he added.

The administration is also prepared to use its emergency powers to extend the life of coal-fired plants, he said.

Last month, Wright extended his emergency order to keep a Michigan coal plant running, even though the plant's operator had been planning to shut permanently for economic reasons.

The Energy Department also ordered a gas and oil-fired power plant, slated for retirement in Pennsylvania, to continue operating.

Wright said more plants should expect similar orders, which fall under grid stability provisions in the Federal Power Act.

"Absolutely, absolutely. Yeah, that's not the only one," Wright said.

Wright said the US would also aim to get more out of the existing grid by running backup generators and standby power plants continuously, rather than just when electricity demand surges.

The White House is also seeking to boost nuclear energy, including through regulatory reforms to speed permitting and by hosting new nuclear technologies through the Department of Energy.

"We need that industry as another source of energy, and so we're going to give temporary nudges to get it started," Wright said.

Currently, two shut US nuclear power plants - including one on Three Mile Island in Pennsylvania - are in the unprecedented process of being restarted. Three Mile Island, dubbed the Crane Clean Energy Center, would deliver electricity for Microsoft data centers.

Total US electricity demand is projected to hit record highs this year and next, according to the Energy Information Administration. Growth in the country's power consumption will also continue to accelerate through the end of the decade as massive AI data center campuses power up.

The global race by countries, primarily the US and China, to dominate AI will depend largely on connecting new electricity supplies, the Trump administration has said.

China built 100 gigawatts of coal-fired power last year and another 100 gigawatts are under construction, Wright said.

"Right now, it doesn't matter what China says about climate policy," Wright said. "They're growing their electricity, they're building their industrial might, and they're saying: please keep sending us your industry."

The Department of Energy, this year, also opened federal land for the development of power plants and data centers.

So far, the department has received some 300 inquiries, Wright said.

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