AI needs a lot of energy. Trump says coal is the answer.

President Donald Trump signed an executive order on Tuesday that aims to revive the US coal industry — in part to power soaring demand for AI.

The executive order "pushes for using coal to power new artificial intelligence (AI) data," per a White House announcement.

The measures would see some older coal plants, which were set to be retired, continue to produce electricity — including to power energy-intensive AI data centers across the US.

Encircled by a group of miners at the White House on Tuesday, Trump announced a plan he said "slashes unnecessary regulations that targeted beautiful, clean coal."

The executive order would label coal a "critical mineral," per the White House release. The administration also aims to "promote coal and coal technology exports, facilitate international offtake agreements for US coal, and accelerate the development of coal technology."

Powering the AI boom

A growing number of power-guzzling data centers, which are crucial for running AI services, have contributed to rising electricity demand in the US in recent years.

Elon Musk's startup xAI, for example, is planning to build a supercomputer in Memphis and has applied for a permit to construct a new electrical substation alongside it.

The International Energy Agency estimates that data centers consume 2% to 3% of the world's energy — a figure that's expected to grow in tandem with the mass adoption of AI.

Coal has been considered a stable energy source because it's fairly abundant, and its supporters say it can meet rising power demands for data centers.

As the US looks to bolster its AI ecosystem and encourage juggernauts to develop their technologies on home soil, the administration is touting coal as one way to power the AI boom.

Trump has repeatedly drawn comparisons to China — which has doubled down on its coal power plant production, as well as its renewables industry — and the economic advantages it has gained in the AI race as a result of this.

Big Tech giants such as Google, Meta, and Amazon, which are scrambling to develop ever more advanced AI models, had previously pledged to use low-carbon, renewable energy sources to build their data centers. However, much of the electricity needed for this has so far been generated by fossil fuels.

It may not be smooth sailing to revive the coal industry. Critics say that natural gas, wind, and solar are cheaper alternatives to coal — and less polluting and harmful to the environment. The US Energy Information Administration estimated in February that 93% of new electric-generating capacity set to be added to the US grid this year is expected to come from solar, wind, and batteries — which could make coal less competitive.

"Coal plants are old and dirty, uncompetitive and unreliable," said Kit Kennedy, managing director for power at the Natural Resources Defense Council, in a statement Tuesday. "The Trump administration is stuck in the past, trying to make utility customers pay more for yesterday's energy. Instead, it should be doing all it can to build the electricity grid of the future."