The convergence of increasing energy demands, the uptake of AI and the reorientation of federal energy policy to support reliability is reshaping the national energy debate. At its center is coal’s position as a proven, reliable source of power that supports grid stability and strengthens U.S. competitiveness in the digital economy.
AI Demand and the Electricity Surge
One of the sharpest recent shifts in the U.S. power landscape is accelerating demand from data centers, fueled by growth in artificial intelligence, cloud computing and high-performance workloads. Data centers consumed 4.4% of total U.S. electricity in 2023, with projections rising to 6.7%-12% by 2028, according to a December 2024 DOE report.
Commercial computing is becoming a dominant driver. Electricity use for commercial computing could grow from 8% of commercial sector consumption in 2024 to 20% by 2050, according to the EIA’s 2025 Annual Energy Outlook. Some utilities report new data-center load requests comparable to their entire existing customer base.
ICF International, a leading U.S. consultancy, forecasts U.S. electricity demand jumping 25% by 2030 and 78% by 2050 from 2023 levels. In some regions of the country, the jump will be even larger and faster. In fact, it’s already begun.
In its 2025 Summer Reliability Assessment, the North American Electric Reliability Corporation (NERC) reported that aggregate peak demand increased by 10 GW versus last year. That is more than double the prior year-to-year increase. Data centers, electrification and industrial growth were cited as key drivers.
Reliability Pressure Meets Coal Retirements
The accelerated retirement of dispatchable generation that followed years of a regulatory onslaught from the prior administration created a power supply and reliability crisis.
When the Trump administration took office, NERC was projecting that over the next decade, more than 115 GW of generation would retire — mostly fossil and nuclear — increasing reliance on variable, non-dispatchable resources. The administration faced an alarming challenge: demand was surging as baseload capacity was rapidly eroding. Stopping the loss of essential coal capacity became a priority for the administration as it looks to ramp up — not displace — dispatchable capacity.
In its recent AI Action Plan, the administration’s leading energy policy recommendation was to “stabilize the grid of today as much as possible,” placing a priority on efforts to, “safeguard existing assets and ensure an uninterrupted and affordable supply of power.” Existing assets means the coal fleet.
Coal offers distinct strategic advantages to our increasingly stressed grid. As a domestic, fuel-secure resource with on-site stockpiles, coal mitigates supply chain risks that have at times crippled the U.S. natural gas delivery system. Its dispatchable nature, ability to ramp-up with demand and proven track record provide clear advantages over weather-dependent fuel sources.
Our underutilized coal fleet offers gigawatts of needed capacity hiding in plain sight, with plants and infrastructure that are already built avoiding the years-long delays associated with new construction. With power demand soaring and natural gas prices rising, the coal fleet is already meeting the moment with coal consumption up 15% through the first half of the year.
Securing the Grid
The intersection of demand growth and constrained generation has placed coal back at the center of the nation’s electricity strategy. Coal is being recognized as the proven backbone of reliability in a rapidly electrifying, power-intensive economy.
For decades, coal has proven itself as the workhorse of American electricity, providing reliable, dispatchable power that keeps the lights on and the economy running. Now, as the nation charges into a digital future powered by AI and advanced computing, that proven track record is more valuable than ever. The coming years will test whether policy, investment and government action can fully capitalize on coal’s enduring strengths to secure the grid for the data-driven economy America is building.