U.S. Expands Coal Leasing to Meet AI Energy Demands

The United States has announced a major expansion of coal leasing and extended operations of aging coal-fired power plants as part of a broader plan to meet surging electricity demand. The Department of the Interior will open 13.1 million federal acres for coal leasing, primarily across Montana, North Dakota, Wyoming, Utah, and Alabama. Alongside this, royalty rates for coal production will be reduced from 12.5% to 7% to encourage further development. Officials emphasized that streamlined approvals will shorten lease processing from years to months, creating rapid access to resources.

The policy shift is closely tied to the rapid growth of artificial intelligence and large-scale data centers, which require vast amounts of power. Energy forecasts indicate the U.S. will need an additional 100 gigawatts of firm capacity within five years, excluding renewables. To achieve this, the administration has urged utilities to delay the retirement of coal-fired power plants, many of which are over 50 years old. Existing backup generation facilities are also being pushed into more continuous operation, while nuclear energy expansion is being explored to diversify the supply base.

From an infrastructure and geotechnical perspective, expanding coal mining on such a large scale raises challenges related to land stability, groundwater management, and reclamation. Open-cut and underground mining operations both alter subsurface conditions, making ongoing geotechnical monitoring essential. With more than 300 new power plant and data center proposals under review, future development will require coordinated efforts to manage both surface and subsurface impacts.

Most US coal plants will stay open, energy secretary says among others in the video below.