US Government Plans $700 Million Support for Coal Power in AI Infrastructure
The US government aims to allocate up to $700 million to support coal power plants and electricity imports to meet rising demand from AI data centers. The funding will modernize 13 coal plants and co-finance projects in Alaska, Maryland, and West Virginia, reflecting a strategic move under the Defense Production Act to ensure energy security.
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The US government plans to invest up to $700 million to bolster coal power infrastructure, primarily to meet the increasing electricity demands of AI data centers. More than half of this funding will focus on modernizing 13 coal plants, while $185 million is earmarked for projects in Alaska, Maryland, and West Virginia.
The initiative is part of a broader effort, initiated in July 2025, to categorize data centers as critical national infrastructure. The Department of Energy has utilized emergency powers to extend the operational lifespan of coal plants and allocated $625 million for modernization efforts. This renewed reliance on coal could significantly increase emissions, particularly given the high pollution levels associated with coal-fired power generation.
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