The US would not be able to phase out coal-powered plants anytime soon as growing AI demands continue to surge the power supply needed to provide services across all Americans.
According to the Financial Times, the US has delayed the planned retirement data for several coal plants to meet increasing power demands.
(Photo : Andrew Caballero-Reynolds/AFP via Getty Images)
As of writing, Alliant Energy has already delayed the retirement of its Wisconsin coal plant from 2025 to 2028, while FirstEnergy is abandoning its 2030 target altogether over "resource adequacy concerns."
Contrary to the US's goal, coal companies expect that demands for coal-powered energy will only grow in the next 20 years as more nations lean into the AI hype.
US Power Supply at Risk Amid Growing AI Popularity
The decisions followed after the power plant companies touted earlier their financial growth as more businesses turned to AI production.
The government originally planned to retire 54 gigawatts worth of coal power generators, or 4% of the total electricity supply in the US, by the end of the decade.
Several earlier reports have already indicated that the US power supplies might be nearing critical levels as AI data centers consume more energy amid growing demands.
An analysis from the Electric Power Research Institute projected that AI technology may soon consume 4.6% to 9.1% of the country's total energy supplies by 2030.
Also Read: AI Data Centers is Taking a Huge Toll on US Electricity Supplies
Biden Admin Faces Energy Dilemma in AI Surge
The delays in coal power plants' retirement are expected to set back the administration's push to transition towards clean energy.
US President Joe Biden has been pushing the country's transition towards renewable energy sources as the main power source as lawmakers and coal operators push back against the proposal.
And now, AI's rapid growth has added to the White House's dilemma for its 2030 target.
Amid concerns about its push for an energy transition, Biden's administration continues to pour billions of dollars into the AI industry to produce more advanced AI chips and semiconductors.
Earlier in March, the administration pledged $100 billion to Intel as it pushes to build more chip factories in four states.
The factories are expected to generate new jobs for the state and increase supplies of materials needed to build and train AI models.
Related Article: Intel Plans to Spend $100 Billion to Build, Expand Factories in Four States
