Trump Moves to Revive Coal Industry

US President Donald Trump has signed an executive order to boost the coal industry in response to the growing energy demands of data centers fueled by the rapid expansion of AI.

“All the plants that have been shut down will be reopened if they meet modern standards; otherwise, they will be demolished and replaced with new facilities,” Trump announced during a speech to coal industry workers.

Trump also stated that he will direct Energy Secretary Chris Wright to channel investments into next-generation technologies to support the sector. In addition, he plans to ask the Department of Justice to ease existing regulations on coal, according to Bloomberg. White House spokesperson Karoline Leavitt echoed the administration’s stance in a social media post, declaring that “coal is essential for achieving US dominance in energy and Artificial Intelligence.”

Trump’s push to revive the coal sector is consistent with his broader efforts to dismantle environmental, political, and economic regulations. Although coal consumption in the United States is expected to rise in the short term, the International Energy Agency (IEA) reports that demand in advanced economies such as Europe has already peaked and is forecast to decline due to clean energy policies and growth of alternative sources like natural gas.

In contrast, coal use continues to rise in emerging markets such as India, Indonesia, and Vietnam, where expanding electricity demand is driving increased consumption, particularly in the power sector.

According to the IEA, coal prices remain roughly 50% higher than the 2017–2019 average. Global coal production reached an all-time high in 2024, though growth is projected to level off by 2027 as structural shifts reshape the market. International coal trade is also expected to peak at a record 1.55 billion t in 2024, before declining, especially in the thermal coal segment, as global demand softens. Asia remains the dominant region in international coal trade, with the largest importing countries being China, India, Japan, Korea, and Vietnam, while Indonesia and Australia are the top exporters.