CNBC: AI revives coal debate

CNBC and the Los Angeles Times put the same pressure point into view on May 17: artificial intelligence is no longer just a software story. It is an electricity story. Data-center build-outs are lifting load forecasts, feeding fights over who pays for new generation and transmission, and reopening arguments over whether coal plants once marked for retirement should stay on the grid longer. A separate report that NextEra Energy is discussing a roughly $66 billion deal for Dominion Energy added a corporate marker to the shift, linking utility scale more directly to the race for power-hungry AI infrastructure. ### Why is coal back in the conversation at all? CNBC reported on May 17 that Jim Cramer said AI’s appetite for electricity could revive a “forsaken” energy source, arguing that coal could remain in use if utilities and federal officials keep plants operating to support grid reliability. CNBC separately reported in 2025 that President Donald Trump issued an executive order directing his Cabinet to identify coal-powered infrastructure that could support AI data centers. (europesays.com) The U.S. Energy Information Administration said on March 12 that fossil generation could rise if data-center power demand grows faster than expected. The International Energy Agency said renewables and natural gas are expected to lead new supply for data centers, but it also said the swelling pipeline of projects is straining grid connections, equipment supply chains and planning systems. ### How fast is electricity demand actually rising? (europesays.com) The EIA said on January 13 that it expects the strongest four-year growth in U.S. electricity demand since 2000, with data centers a main driver. In its latest short-term outlook, the agency said U.S. electricity consumption is expected to rise 1.3% in 2026 and 3.1% in 2027, with commercial-sector sales — including data centers — up 2.2% this year and 5.3% next year. (eia.gov) The IEA said last month that electricity demand from data centers rose 17% in 2025, and that U.S. data centers are on course to account for almost half of the country’s electricity-demand growth through 2030. PJM, the grid operator serving all or parts of 13 states and the District of Columbia, has also been revising how it incorporates data-center loads into its long-term forecasts. (eia.gov) ### Why are household bills and utility profits getting pulled into this? The Los Angeles Times reported on May 17 that rising electric bills are pushing governors, attorneys general and lawmakers in multiple states to challenge utility profits as AI-related infrastructure spending grows. A matching account distributed through other outlets said officials in at least six states are scrutinizing whether monopoly utilities are earning too much while households absorb higher costs. (iea.org) The IEA said last month that data centers have become a visible flashpoint for concerns about energy prices and the environment. Consumer Reports said in April that lawmakers in more than 30 states had introduced more than 300 bills in 2026 tied to data centers, including measures on energy policy, tax incentives and moratoriums. (msn.com) ### What does the NextEra-Dominion report have to do with AI? Reuters reported on May 17, citing Bloomberg, that NextEra Energy is discussing a mostly stock deal for Dominion Energy valuing Dominion at about $76 a share, or roughly $66 billion. The New York Times reported that the talks come as demand for power is soaring, largely because of rapid growth in AI data centers. (iea.org) Dominion sits at the center of one of the country’s most important data-center corridors in Virginia. PJM materials published in 2025 said Dominion expected higher-than-normal demand growth in 2026 as transmission infrastructure relieved a temporary constraint in Loudoun County and as capacity requests kept increasing across its territory. (money.usnews.com) ### What does this change for companies trying to deploy AI? PJM documents and EIA forecasts point to the same operational constraint: power is becoming a gating factor, not a background assumption. The IEA said supply chains for gas turbines, transformers, advanced chips and other components have tightened as the project pipeline expands, while grid-connection approvals are taking longer. (pjm.com) For cloud, model and colocation teams, that means site selection, power contracts and load timing now sit closer to chip choice and model design in deployment planning — an inference supported by the way utilities, grid operators and energy agencies are now publishing data-center-specific load adjustments and forecasts. (pjm.com) May 18 trading and any company statements will be the next immediate test for the Dominion talks, while state utility commissions continue to process rate cases tied to grid spending. PJM’s load-forecast work and future EIA outlooks will provide the next public read on whether AI demand keeps pulling coal, gas, renewables and transmission deeper into the same fight. (money.usnews.com) (pjm.com)