To lead in AI, Trump wants to revive coal

In order to supply electricity for the AI sector, Trump wants to burn coal.

According to Bloomberg, a senior White House official revealed that Trump plans to sign an executive order in the East Room of the White House at 3 PM Eastern Time on Tuesday, aimed at expanding domestic coal mining and usage in the United States to provide power for high-energy data centers and to fully promote the revival of the coal industry. Executives from major mining companies, including Peabody, will attend the signing ceremony.

Why does Trump want to revitalize the coal industry?

Trump's reasoning is not complicated; he hopes to provide electricity for data centers and heat for steel manufacturing. The president and senior government officials have made it clear that increasing coal-fired power generation is a top priority, related to national security and the United States' leading position in the global AI competition.

On Monday, Trump told reporters in the Oval Office that the power supply for data centers will determine whether we can maintain our advantage in AI.

Doug Burgum, head of the Energy Dominance Council and Secretary of the Interior, stated that coal is "cheap and reliable," and is a key energy source supporting data centers, new factories, transportation, and the electrification of heating. NextEnergy predicts that electricity demand in the United States will surge by 55% over the next 20 years.

Additionally, amid the fluctuating tides of globalization, Trump also views coal as a diplomatic bargaining chip. Last week, he imposed comprehensive tariffs on major trading partners and urged European allies to purchase more American energy. The order on Tuesday will also instruct relevant departments to promote the export of coal and related technologies, facilitating international procurement agreements.

Key initiatives

The order outlines several key initiatives.

First, it will restore coal leasing auctions on federal lands, officially ending the "leasing pause" implemented during the Obama administration; at the same time, it will accelerate coal exports and the promotion of related technologies. The executive order also authorizes the use of emergency powers to restart closed coal-fired power plants and prevent further plant closures.

In terms of energy resource positioning, the Trump administration plans to classify coal as a "critical mineral," prioritizing it alongside materials needed for defense systems and batteries, and will require the Department of Energy to assess whether metallurgical coal used for steel production should also receive equal status.

Furthermore, the order will require federal agencies to abolish policies unfavorable to coal, rescind all administrative measures that restrict coal production and usage, and strive to "unleash" the coal industry.

During his presidential campaign last year, Trump vowed to revitalize coal, prioritizing "reviving coal" during his first term, and has once again emphasized the role of coal in national energy security and AI strategy upon returning to the White House.

Trump has complained that previous administrations "declared war on coal," restricting power plant emissions through environmental regulations and tightening mineral permits, thereby stifling the development potential of coal. His current move to "unleash coal" aims to reverse the declining trend of coal in the U.S. energy structure over the past 30 years.

Data shows that as of 2023, coal companies hold only 279 leases on federal lands, covering 422,000 acres, compared to 489 leases covering 730,000 acres 33 years ago. Trump hopes to encourage coal companies to reapply for more mining rights on federal lands in an attempt to revive coal productionAt the same time, the Environmental Protection Agency (EPA) under Trump's leadership is also cooperating to promote this initiative. On one hand, it is amending regulations on emissions from coal-fired power plants and relaxing restrictions on mercury and carbon dioxide; on the other hand, it is considering exempting some power plants from emission control obligations, which means that in the future, more coal-fired power plants may operate under lower environmental thresholds.

Can the Coal Industry Truly Revive?

However, the reality is much more complex than slogans. Despite presidential support, it remains uncertain whether the coal industry can reverse its decline.

On one hand, the position of coal in the energy structure of the United States continues to decline. According to data from the U.S. Energy Information Administration, coal currently accounts for only 15% of the nation's electricity generation, having been halved compared to the year 2000. Since 2000, approximately 770 coal-fired units have been shut down, and the trend of closures is ongoing. Under the dual pressure of low natural gas prices and the accelerated development of renewable energy, the coal industry has been in a long-term state of contraction.

Technology companies are even more indifferent to this situation. Giants like Google and Microsoft have turned to clean energy sources such as wind and nuclear power in recent years, aiming for carbon neutrality. Whether Trump's executive orders can truly shake these companies' energy strategies remains to be seen.

Another major obstacle comes from environmental regulations. Even if Trump calls for the repeal of a series of policies that "restrict coal" and pushes the EPA to relax pollutant controls on coal power, this move is likely to face strong opposition from courts, state governments, and environmental organizations.

The power generation industry is the second-largest source of greenhouse gas emissions in the United States, second only to transportation, and coal's carbon emissions are twice that of natural gas. It is precisely because of its higher pollution levels that multiple administrations have continued to promote a reduction in coal usage