Trump is making coal plants even dirtier as AI demands more energy

Key takeaways

• The Trump administration has repealed key environmental regulations, specifically the Mercury and Air Toxics Standards (MATS), reverting pollution standards for power plants to 2012 levels.
• This deregulation push coincides with a significant rise in US electricity demand, driven by the rapid expansion of AI data centers, increased domestic manufacturing, and a growing fleet of electric vehicles.
• The administration's stated aim is to streamline the construction of new data centers and the fossil fuel infrastructure required to power them, including coal plants.
• Aging coal-fired power plants, which are major sources of mercury emissions, are being kept online — both through direct orders from the Trump administration and decisions by public utilities responding to the escalating power needs from tech companies.
• Environmental advocates warn that rolling back these health protections jeopardizes public health, particularly for children, to benefit the coal industry.

What happened

In a significant policy reversal, the Trump administration has officially repealed crucial Biden-era restrictions on mercury and other toxic pollutants emanating from power plants. The Environmental Protection Agency (EPA) finalized its rollback of the Mercury and Air Toxics Standards (MATS), effectively weakening regulations that the Biden administration had fortified in 2024.

This move reverts the pollution standards to the levels originally established by the Obama administration in 2012. The repeal comes at a time when the United States is experiencing an uptick in electricity demand, fueled by the aggressive buildout of new AI data centers across the country.

President Donald Trump's broader deregulation spree is characterized by its aim to accelerate the construction of critical infrastructure. This includes not only new data centers but also the necessary fossil fuel infrastructure — explicitly, coal plants — to power them. According to an EPA fact sheet, weakening these regulations is projected to save the industry $78 million each year, commencing in 2028.

Why it matters

The repeal of MATS carries significant implications for both public health and environmental quality. These standards are particularly vital for controlling pollution from coal-fired power plants, which are responsible for approximately half of all mercury emissions in the United States.

Mercury is a potent neurotoxin with severe health consequences. High levels of exposure have been directly linked to devastating birth defects and profound learning disabilities in children. Beyond these specific impacts on pediatric health, mercury exposure can also critically impair kidney function and damage the nervous system in individuals of all ages.

Nicholas Morales, an attorney with the nonprofit environmental law group Earthjustice, strongly criticized the administration's actions. In a press release, Morales stated, “The Trump administration is wiping out health protections critical for protecting children from toxins like mercury just to save the coal industry some money.”

This regulatory rollback occurs paradoxically as the nation's demand for electricity is surging. The growing energy appetite of new AI data centers, alongside increased domestic manufacturing and the expansion of electric vehicles, requires substantial power generation. However, the administration's current approach is making this power generation dirtier by lowering pollution standards, rather than cleaner.

Furthermore, the increased electricity demand from tech companies scaling up energy-intensive AI data centers is contributing to the extended operational lifespans of aging power plants. For example, the Tennessee Valley Authority (TVA), the largest public utility in the US, recently opted to keep two coal plants active instead of retiring them, directly citing the escalating power demand from data centers.

Key details / context

Historically, power generation from coal in the US has experienced a sharp decline. This shift occurred as gas-fired power plants and renewable energy sources like solar and wind became increasingly cost-competitive alternatives. Despite this trend, the Trump administration has actively sought to reverse or halt the retirement of coal infrastructure.

Since his second term in office, President Trump has issued orders for at least eight coal plants that were initially slated for retirement to remain operational. This commitment to the coal industry was highlighted when Trump accepted the inaugural “Undisputed Champion of Beautiful, Clean Coal” award from the Washington Coal Club earlier this month.

The Mercury and Air Toxics Standards (MATS) have undergone several iterations. They were initially instituted by the Obama administration in 2012. The Biden administration subsequently strengthened these standards in 2024, before the current Trump administration's decision to repeal them and revert to the less stringent 2012 levels.

This deregulation initiative is framed by the Trump administration as a means to make it simpler and faster to construct new data centers and the necessary fossil fuel infrastructure, including coal plants, to power the nation’s increasing electricity needs. The estimated annual savings of $78 million for the industry, beginning in 2028, further underscore the economic rationale presented for this rollback.

What happens next

With the repeal of the Mercury and Air Toxics Standards finalized, the weakened pollution regulations for power plants are now set to take effect. This means that power plants, particularly coal-fired ones, will operate under less stringent controls for mercury and other toxic emissions, reverting to the standards originally established in 2012.

The projected annual savings of $78 million for the industry, as outlined by the EPA, are expected to commence in 2028. This economic incentive is likely to influence operational decisions within the power sector.

The Trump administration's broader push to facilitate the rapid construction of new data centers and associated fossil fuel infrastructure is anticipated to continue. This policy direction aims to meet the escalating electricity demands driven by generative AI, domestic manufacturing, and electric vehicles.

As tech companies continue to expand their AI data center operations, the demand for power will likely remain a critical factor in energy policy and utility decisions, potentially leading to further extensions of aging power plants' lifespans.

FAQ

• Q: What are the Mercury and Air Toxics Standards (MATS)? A: MATS are federal regulations designed to limit the emissions of mercury and other toxic air pollutants from power plants, particularly coal-fired facilities.

• Q: Why are these standards being weakened? A: The Trump administration repealed the Biden-era MATS, rolling back the regulations to their 2012 levels. This action is projected to save the coal industry an estimated $78 million annually starting in 2028.

• Q: How does generative AI relate to these changes? A: The buildout of new, energy-intensive AI data centers is significantly increasing US electricity demand. This heightened demand is a key factor prompting utilities to extend the operational lifespans of aging power plants, including coal-fired ones, to ensure sufficient power supply.