Datacenter Boom Keeps Dirty Coal Plants Alive in the US

Why It Matters

Extended operation of coal and new gas plants undermines U.S. climate goals and raises public‑health risks, while threatening the economic case for renewable investment.

Key Takeaways

• Datacenter demand stalls coal retirements, extending plant life.
• 40% of scheduled coal retirements delayed through 2025.
• New gas capacity of 41.8 GW slated by 2030.
• “Zombie” plants emitted 65 million metric tons CO₂ in 2023.
• Policymakers urged to boost efficiency and renewable procurement.

Pulse Analysis

The rapid expansion of data centers, especially those supporting artificial‑intelligence models, has created an unexpected energy surge in a market that had enjoyed flat demand for years. Utilities, facing a sudden need for reliable baseload power, are turning to existing coal facilities rather than accelerating retirements, a trend highlighted in recent nonprofit research released on Earth Day. This dynamic illustrates how digital infrastructure can inadvertently lock in legacy emissions, complicating the United States’ broader decarbonization agenda.

Analysis of Energy Information Administration data shows that about 40% of coal retirements slated for completion by the end of 2025 have been postponed, extending the operational horizon of some plants to 2065. Simultaneously, natural‑gas projects are booming, with 41.8 GW of new capacity expected by 2030, each plant typically lasting 30‑40 years. The combined effect is a resurgence of fossil‑fuel generation that offsets gains from wind and solar, while “zombie” plants alone contributed roughly 65 million metric tons of greenhouse‑gas emissions in 2023—more than the entire state of Massachusetts emitted the previous year.

Policymakers face a clear choice: enforce stricter efficiency standards for data centers, accelerate permitting for renewable projects, and revive clean‑energy tax incentives that have been weakened under the current administration. By aligning data‑center power contracts with renewable procurement and removing barriers to grid connections, the industry can mitigate its carbon footprint and reduce reliance on outdated coal and new gas plants. Such actions would protect public health, lower sulfur dioxide and nitrogen‑oxide pollution, and keep the United States on track toward its 2030 emissions targets.