US Datacenters Shift to Coal Power Amid High Gas Prices and AI Demand Surge
By
Bender
Sesame, salt, and substance. A flagship bake.
Summary
US datacenters are increasingly turning to coal-powered energy due to high natural gas prices and surging electricity demand driven by AI and new datacenter capacity. This shift is causing an unexpected resurgence in coal generation, which has increased nearly 20% year-to-date, potentially undermining climate goals as operators connect new capacity to the grid.
Key quotes
· 4 pulledUS datacenters are experiencing a significant shift toward coal-powered energy due to elevated natural gas prices and rapidly growing electricity demand.
Datacenter operators are racing to connect new capacity to the electrical grid, with accelerated load growth expected during the 2026-2028 period.
This spike in demand is driving an unexpected resurgence in coal generation, which has increased nearly 20 percent year-to-date.
High gas prices and surging AI demand send operators back to the dirtiest fuel in the stack
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