Data center energy surge pressures grids and fuels fossil comeback

The U.S. Department of Energy and electric utilities are delaying coal retirements and issuing emergency actions to keep capacity online to meet surging data center electricity demand.

• Main action:DOE emergency declarations (2025) and utilities postponing retirements to preserve capacity — includes 8 coal units representing >17 gigawatts under emergency orders and 15 postponed coal plant retirements (plants that emitted nearly 65 million metric tonnes CO2 in 2023). These actions are framed as responses to rapidly rising requests from data center developers for large amounts of energy.
• Background & context: Forecasts show data center demand could reach 130 GW and account for up to 12% of U.S. electricity demand (~580 TWh/year by 2028); utilities have announced >100 GW of new gas-fired plants (most expected before 2030). The piece contrasts this with the prior decade’s shift away from coal (coal share fell from 51.7% to 16.2% between 2000–2023) and notes alternatives such as co-locating renewables and battery storage next to data centers to reduce grid upgrades and emissions.