AI data centers fuel electricity demand surge, reviving coal plants and reversing clean-air gains

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The AI boom is reversing years of environmental progress as surging electricity demand from data centers keeps coal-fired power plants running. Trump administration policies have scrapped clean-air standards and delayed plant retirements, creating a political backlash ahead of midterm elections while activists warn of mounting health risks in already polluted communities.

AI Electricity Demand Reverses Clean-Air Progress

The rapid expansion of AI and data centers is creating an unexpected environmental crisis across the United States. Power-hungry AI facilities are driving electricity demand to unprecedented levels, forcing a policy reversal that keeps coal-fired power plants operating and rolls back environmental regulations that took decades to achieve

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. The U.S. Department of Energy estimates artificial intelligence and data-center growth will create 50 gigawatts of new electricity demand by 2030, representing a nearly 4% increase over the 1,300 gigawatts produced by all U.S. power plants in 2025

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. This surge in energy consumption has effectively halted the retirement of aging coal plants, with only four plants producing 2.6 gigawatts retired in 2025, compared with 94 producing 15 gigawatts in 2015

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Source: ET

Source: ET

Trump Administration Scraps Environmental Regulations

President Donald Trump issued an executive order entitled "Reinvigorating America's Beautiful Clean Coal Industry" that positioned coal-fired power as crucial to meeting rising electricity demand driven by AI data processing centers

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. The Trump administration has provided funding to keep old plants running, issued orders to delay plant retirements, and rolled back environmental regulations on mercury and other toxins to free plants from costly upgrades

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. In February, the administration scrapped tougher federal soot standards adopted in 2024 under the Biden administration before they took effect, eliminating requirements that would have forced plants to slash emissions in half or shut down

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. Air quality activists and health advocates interviewed for recent reporting unanimously identified the AI boom and the policies supporting it as the biggest potential threat to U.S. air quality

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Political Backlash Grows Ahead of Midterm Elections

From the White House to state governments, politicians who championed the data-center boom now face mounting public opposition ahead of midterm elections

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. President Trump and state governors like Pennsylvania Democrat Josh Shapiro are pushing data centers to buy or generate their own electricity to address voter fears about rising utility bills

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. A coalition of farmers, environmentalists and homeowners have united to resist data-center expansion over concerns ranging from higher power bills to reduced water supplies, creating potential liability for Republicans in November

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. Some local governments have moved to block large data centers, with bills in a dozen states proposing temporary moratoriums. Maine became the first state to pass a ban on large data-center construction this week

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Natural Gas Plants Replace Coal but Concerns Persist

The bring-your-own-power approach has led to massive construction projects like the $12 billion development at Homer City, Pennsylvania, 50 miles east of Pittsburgh

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. What was the site of Pennsylvania's largest coal-burning plant is being redeveloped into one of the biggest natural gas plants under construction in the U.S., designed to power a roughly 1,000-acre data center campus

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. The facility will provide about 3,700 megawatts to the energy campus and still have some 800 megawatts to spare for the local grid, enough to power 800,000 homes

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. However, many residents don't want to live near data centers, remain unconvinced they'll provide lasting employment, and worry about polluting emissions from on-site power plants and the possibility that AI bots will eliminate jobs

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Source: Bloomberg

Source: Bloomberg

St. Louis Faces Mounting Public Health Crisis

St. Louis exemplifies the environmental impact of policy reversal, ranking 475th in air quality out of 501 U.S. metro areas

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. Metro St. Louis residents had "good" air to breathe during only one-third of the days last year

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. The Labadie Energy Center, sitting 40 miles west of the city, produces the highest combined total of sulfur dioxide and nitrogen oxides among U.S. coal plants, emitting soot at two to three times the rate of nearly every other coal plant

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. That pollution drives an estimated economic burden of up to $5.5 billion annually, with about $820 million borne by St. Louis area residents

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. Barbara Johnson, a 75-year-old organizer with Metropolitan Congregations United who has fought coal pollution for decades in North St. Louis, watched her hopes vanish when the Trump administration scrapped clean-air standards. "You take two steps forward and four steps back," Johnson said. "I am used to that backwards trend but how many generations will it take to make those positive changes stick?"

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. While Trump has secured voluntary agreements from big tech companies to pay for their power needs and shield consumers from higher bills, his administration has not announced steps to address the health effects of higher pollution from expanded power generation

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Source: Japan Times

Source: Japan Times

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