July 31, 2026 - The dirtiest fuel in America's energy mix is making an unexpected comeback—and artificial intelligence is driving the resurgence. Across the United States, utilities are not only postponing the retirement of coal-fired power plants but actively working to keep them operating as soaring electricity demand from AI data centers places unprecedented strain on the nation's power grid.

In 2025, carbon dioxide emissions from the U.S. power sector climbed 4%, roughly double the 2% increase recorded across the broader economy. The primary reason was a 13% surge in coal-fired electricity generation, fueled largely by AI data centers, which now account for an estimated 4.4% of total U.S. electricity consumption.

The numbers behind AI's growing energy demand

U.S. data centers consumed approximately 176 terawatt-hours (TWh) of electricity in 2023. By 2028 to 2030, that figure is expected to nearly double, reaching between 345 and 580 TWh annually. At the upper end of those projections, AI infrastructure alone would consume about as much electricity each year as the entire country of France.

The sources powering these facilities reveal another important trend. In 2024, natural gas supplied more than 40% of electricity used by U.S. data centers, followed by renewables at roughly 24%, nuclear at about 20%, and coal at approximately 15%.

Although coal's 15% share may appear relatively small, it marks a notable reversal after years of steady decline. Utilities have delayed the retirement of at least 15 coal-fired power plants nationwide, while the U.S. Department of Energy issued emergency orders in 2025 allowing more than 17 gigawatts of coal generation to remain online. Plants that were expected to close were instead instructed to continue operating to maintain grid reliability.

The shift was summed up by Southern Company CEO Chris Womack, who stated:  "We will extend coal plants as long as we can."

Why crypto miners should be paying attention

AI data centers and cryptocurrency mining operations compete for the same essential resource: reliable, low-cost electricity. As AI companies secure long-term power contracts, pay premium rates for electricity, and even purchase generating assets outright, they are reshaping energy markets in ways that affect every power-intensive industry.

Bitcoin miners are already feeling the impact. Several large mining companies have shifted toward AI hosting or high-performance computing because electricity has become more valuable when allocated to AI workloads. When hyperscale operators such as Microsoft or Amazon Web Services are willing to pay more per megawatt-hour than a mining operation, miners are increasingly priced out of the market.

Every additional gigawatt of coal generation kept online to support AI infrastructure contributes to a tighter electricity market. Mining operations located near major data center developments should prepare for higher energy prices, greater grid congestion, and increased regulatory attention surrounding electricity consumption.

When sustainability goals collide with reality

Data centers and crypto mining facilities draw power from the same electrical grids. As coal generation increases to meet rising demand, the associated emissions become part of the overall grid mix rather than being assigned to a single customer. Regulators and ESG-focused investors typically evaluate total grid emissions, not which individual users consume specific sources of electricity.

For investors, one of the most important indicators to monitor is the cost of electricity in regions experiencing rapid data center expansion. As AI companies absorb more generating capacity, the marginal cost of power rises for everyone else—including cryptocurrency miners. Businesses with long-term power purchase agreements or vertically integrated energy assets are likely to enjoy a significant competitive advantage over companies that rely on volatile spot-market electricity prices.