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Big Tech's soaring energy demands are making coal-fired power plant sites attractive

ABC News's profile
ABC News
5h ago

The rising energy demands of Big Tech's cloud computing and AI applications have renewed interest in coal-fired power plant sites, despite their previous unprofitability. The Trump administration's push for 'energy dominance' has resulted in measures to delay the retirement of coal plants, making them attractive for new energy projects due to their existing high-voltage grid connections. Converting these sites to new energy sources, such as natural gas, nuclear, or renewables, is seen as a way to meet rising electricity demands more efficiently, with federal incentives supporting these transitions. States like Pennsylvania and others across the South are actively repurposing these sites for natural gas, wind, solar, and even battery storage, with nuclear power also being considered for its cost-saving potential. In places like Homer City, Pennsylvania, the redevelopment of decommissioned coal plants into new power facilities is sparking local economic optimism and potential population growth.

Big Tech's soaring energy demands are making coal-fired power plant sites attractive

Coal-fired power plants, previously seen as unprofitable, are gaining value due to the increased electricity demand from Big Tech's needs, leading to interest from tech companies, venture capitalists, and states in utilizing their existing high-voltage grid connections.

The Trump administration's executive actions aim to extend the operational life of coal plants, viewing them as integral to achieving U.S. energy dominance, although these plants are still expected to eventually retire due to economic and regulatory challenges.

Converting retired coal sites into new energy sources such as natural gas, nuclear, wind, and solar is seen as a strategic move to quickly meet rising energy demands, aided by federal incentives like tax credits and loan guarantees.

Several states, including Pennsylvania, are capitalizing on their geographical resources to transition from coal to cleaner energy sources, with natural gas being a popular choice due to the proximity of reservoirs like the Marcellus Shale.

Nuclear energy is being explored as a viable option for repurposing coal plant sites, with studies indicating significant cost savings from utilizing existing infrastructure, and legislative efforts in states like Arizona aiming to facilitate these transitions.

In Homer City, Pennsylvania, the closure of a coal-fired plant is giving way to plans for a $10 billion natural gas-powered data center campus, which is expected to boost the local economy and population.

The potential for reusing coal plant sites includes training existing coal plant workers for new roles in emerging energy industries, offering a pathway to economic revitalization in areas historically dependent on coal.

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