Energy-hungry data centers have been a lifeline for ailing U.S. coal plants, analysts say.
U.S. data centers are predicted to consume up to 106 gigawatts of power by 2035, up from just 35 gigawatts in 2024, according to BloombergNEF. Power utilities are citing the spread of data centers as a rationale to keep coal plants online — plants that have, for decades, been losing ground to solar, wind, and natural gas.
Chris Womack, head of power utility Southern Company, said at a recent industry conference, “We’re going to extend coal plants as long as we can because we need those resources on the grid.”
Since the beginning last year, at least 15 coal plants have had their planned retirements delayed, some indefinitely, according to a recent DeSmog analysis of Energy Department data. These include a plant in Michigan that Secretary of Energy Chris Wright ordered to remain open, citing an “emergency” energy shortage.
Wright has said he expects most coal plants will stay online to service the energy demands of A.I. Coal, he said in September, “will be essential to powering America’s reindustrialization and winning the A.I. race.”
Wright has also looked to nuclear as a way to meet demand from data centers. Globally, nuclear is gaining steam. Fifteen nuclear reactors are slated to go online worldwide this year, up from just two in 2025, according to BNEF. Another 50 reactors are due to be switched on before 2030.
But analysts say U.S. nuclear may struggle to compete with other forms of electricity. Nuclear plants take years to plan and build, and rarely finish ahead of schedule. So while A.I. could give nuclear a boost, said BNEF analyst Chris Gadomski, “Unless the nuclear industry responds quickly, this opportunity may be lost to fossil fuels and renewables.”
ALSO ON YALE E360
To Feed Data Centers, Pennsylvania Faces a New Fracking Surge