Trump’s coal-powered AI plan faces data center opposition

President Trump’s fossil-fueled AI agenda is putting state and local governments in a challenging position as they balance federal energy directives with community opposition to data centers. The administration’s push to power AI infrastructure with coal and other fossil fuels conflicts with local climate goals and growing resident activism against energy-intensive data centers, potentially complicating government AI initiatives.

The big picture: Trump’s administration is actively promoting coal and fossil fuels as the primary energy sources for AI infrastructure, dismissing renewable alternatives despite their lower costs and scalability.

• At a cabinet meeting on August 26, Trump stated: “Whether we like it or not, fossil fuel is the thing that works. We’re going to fire up those big monster factories.”
• He criticized wind power, saying “Windmills, we’re just not going to allow them. They ruin our country. They’re ugly, they don’t work, they kill your birds, they’re bad for the environment.”
• The president showcased a $50 billion mega data center planned for Louisiana, provided by Mark Zuckerberg, CEO of Meta.

Federal policy shift: Two executive orders are accelerating coal-powered AI infrastructure development while reducing regulatory barriers.

• “Reinvigorating America’s Beautiful Clean Coal Industry” directs federal agencies to identify regions where coal-powered infrastructure can support AI.
• “Accelerating Federal Permitting of Data Center Infrastructure” shifts permitting power to the federal government to expedite AI infrastructure construction.
• Matthew Mackowiak from Core Natural Resources, a U.S.-based mining and mineral resource company, called this a “resurgency for the industry,” arguing coal is “uniquely positioned” to meet AI’s energy demands.

Community resistance intensifies: Local opposition is threatening to derail data center projects across the country, with residents citing utility costs, environmental concerns, and quality of life impacts.

• According to Data Center Watch, a research firm, $18 billion worth of data center projects have been blocked and $46 billion delayed over the past two years due to community opposition.
• A typical AI-focused data center consumes as much electricity as 100,000 households, while larger centers under construction may consume 20 times more.
• Common opposition arguments include higher utility bills, water consumption, noise, property value impacts, and green space preservation.

Local government caught in the middle: Recent municipal decisions highlight the growing tension between federal AI priorities and community concerns.

• Tucson City Council members voted against a proposed data center project due to public pressure over water usage concerns.
• St. Charles, Missouri, recently considered banning proposed data centers for one year following resident opposition.
• Many state and local governments are simultaneously launching their own AI programs for traffic management and citizen services.

The cost contradiction: Despite the federal push for coal, renewable energy sources remain more cost-effective for powering AI infrastructure.

• Energy Innovation, a think tank, shows coal power typically costs more to run than renewables in the U.S.
• The Department of Energy previously identified “solar energy, land-based wind energy, battery storage and energy efficiency” as the “most rapidly scalable and cost competitive ways to meet increased electricity demand from data centers.”
• Many states with AI initiatives, including North Carolina and California, have existing climate pledges to reduce greenhouse gas emissions.

Why this matters: The clash between federal energy policy and local opposition could create a ripple effect of public distrust toward AI technology, potentially undermining government AI initiatives regardless of their benefits. As Mackowiak noted, officials have a “tough job, listening to constituents and trying to do what’s best” while considering “access to affordable, reliable, dependable power” for economic and national security purposes.