The US government is planning to announce a support package of up to $700 million for coal-fired power plants and imports to meet growing electricity demand, primarily from the data center market.
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First reported by Bloomberg, the support is expected to be announced under the Cold War-era Defense Production Act, which provides executive powers to support private industrial production deemed vital to US security. A formal announcement on the funding package is expected later today.
Last July, the Trump administration declared data centers as critical national security infrastructure, issuing an executive order designed to fast-track their permitting and development. To meet the skyrocketing power demands, the administration has thrown its weight behind coal power as a crucial energy source - despite the fact that its domestic power share has hit historic lows, accounting for approximately 15 percent of the country’s electricity generation.
According to the reports, of the $700m, more than half will fund 13 coal plant upgrades, $185m will be used to match corporate funds for coal facilities in Alaska, Maryland, and West Virginia, and $75m will support the proposed West Gateway export terminal in Northern California.
