In Harrisburg, Pennsylvania, coal-fired power plants, which have faced financial challenges in recent years, are experiencing renewed attention due to increasing electricity demand driven by Big Tech’s cloud computing and artificial intelligence applications.
President Donald Trump, advocating for U.S. “energy dominance” globally and proposing coal as a solution to soaring power needs, is exercising emergency powers to encourage utilities to maintain operations at older coal-fired plants.
Some utilities had already postponed the retirement of coal-fired plants. However, numerous plants recently shut down, or slated for closure, have attracted interest from tech companies, venture capitalists, and states, all competing for electricity resources. These plants feature high-voltage lines connected to the electricity grid, presenting opportunities for new power plants—such as gas, nuclear, wind, solar, or battery storage—to swiftly meet growing energy demands.
John Jacobs, an energy policy analyst at the Bipartisan Policy Center in Washington, D.C., noted that the complexities surrounding the construction of new high-voltage power lines have hindered efforts to secure permits for new plant interconnections. The established infrastructure at retired coal plants is seen as valuable.
The closure rate of aging coal plants in the U.S. had been expected to accelerate just as electricity demand rises for the first time in decades. The Department of Energy’s December report outlined a strategy leveraging retired coal plants, which have struggled against low-cost natural gas and stringent pollution regulations, to help address this demand.
Federal incentives like tax credits and loan guarantees are also in place to support the transition of retired coal plants into new energy sources. Todd Snitchler, president and CEO of the Electric Power Supply Association, indicated that Trump’s executive orders might extend the operational life of some coal-fired plants, although they are ultimately expected to retire.
Time is critical for deploying new power plants. Data center developers face lengthy waits to connect to regional electricity grids, with obtaining rights-of-way for power lines often challenging due to neighbor objections. Stephen DeFrank, chairman of the Pennsylvania Public Utility Commission, observed that re-configured grid plans are likely to increase the value of retired coal plants due to their existing connections.
Conversion efforts often favor natural gas, particularly in Pennsylvania, which sits atop the Marcellus Shale reservoir. In the South, utilities are replacing coal units with gas, including projects by Tennessee Valley Authority, Duke Energy in North Carolina, and Georgia Power.
Some high-voltage lines at retired coal plants on the Atlantic Coast now connect offshore wind turbines to grids. In Alabama, a former coal plant site will host a utility-scale battery energy storage facility. Meanwhile, Vistra is installing solar panels and energy storage at its coal plant sites in Illinois, supported by state subsidies.
Nuclear energy is also under consideration. Arizona is advancing legislation that would ease the path for adding advanced nuclear reactors to retiring coal plant sites. In Indiana, a report suggested that repurposing coal plant sites for nuclear power could reduce project costs significantly.
With the decommissioning of coal-fired plants, there is potential for retraining coal plant workers for nuclear roles. The Bipartisan Policy Center’s study indicated cost savings by utilizing existing infrastructure at coal plant sites for developing nuclear plants.
In Homer City, Pennsylvania, the closure of a coal plant brought concern, yet recent announcements regarding a $10 billion natural gas-powered data center have sparked optimism for local revitalization. The new project is expected to attract families and support the community’s growth.
