Old King Coal may no longer sit at the head of the energy table, but the fuel that once powered the industrial revolution in Great Britain and later in the United States is still an important energy resource. Coal remains an important energy resource for the U.S. economy. It is fair to say that demand for coal power in the U.S. will remain stable and perhaps modestly increase over the next several years.
Fortunately, President Donald Trump and his administration recognize the importance of coal to the economy and to national security. The president has highlighted that coal is a critical natural resource in several executive orders.
Electricity generation in the U.S. hit a record high in the first half of 2025, as power demand grows with the rapid buildout of artificial intelligence data centers. Electricity provided by utilities in the U.S. rose by 4% from January to June, to an all-time high of 2,188 terawatt hours for this period (that is a lot). Natural gas and other carbon-based fuels, including coal, powered more than half of all electricity. Coal power generation in the first half of the year reached the highest level since the first half of 2022. It provided 16% of the total domestic electricity supply. The increase in coal production was principally a function of a spike in natural gas prices. Electricity utilities substituted coal for higher-priced gas.
In the U.S., demand for the AI Revolution, and the data centers that are central to AI, will probably increase from the current 5% of total domestic electricity demand to more than 10% of total demand by 2030. To illustrate the explosive growth in AI data centers, on Tuesday, the U.S. technology giant Oracle said demand for its AI cloud services will increase by 700% between 2025 and 2030. Oracle’s data centers will require vast amounts of electricity. Importantly, the state of Georgia announced in July that two coal plants scheduled to be decommissioned would remain online to meet surging electricity demand from AI data centers.
Yes, capital investment in green energy power sources is strong, and a nuclear power renaissance is underway. Still, permitting obstacles will make it highly unlikely that solar, wind, and nuclear power alone will be available to meet rapidly growing demands for electricity from AI data centers and U.S. manufacturers who are reshoring to the U.S. Equally important, solar and wind power are not 24/7 fuels. Both of these green energy sources require base load backup power sources when weather conditions and the hours of night reduce their output.
Nuclear power is a base load fuel, but a nuclear power plant cannot easily ramp up power production to meet a sudden increase in demand. And objectively, the buildout of new nuclear power plants will probably be slow because of litigation and regulatory constraints. Inevitably, both natural gas and coal will provide the base load power for the domestic electricity industry. Both natural gas and coal power plants can rapidly increase electricity power supply in response to demand spikes caused by weather or other unforeseen events. Fortunately, the U.S. is blessed with almost unlimited natural gas and is home to the world’s largest coal reserves.
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AI is central to the economic future of the U.S. AI superiority is also essential for national security. Fortunately, the U.S. has the energy resources, especially natural gas and coal, necessary to power the AI revolution.
King Coal is not on life support.
James Rogan is a former U.S. foreign service officer who has worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society. He can be followed on X and reached at [email protected].
