The Blubber

President Donald Trump announced plans to fast-track the construction of power plants dedicated to artificial intelligence through an emergency declaration, emphasizing that these plants can use any fuel source, including coal.

"We're going to build electric generating facilities. I'm going to get the approval under an emergency declaration, bypassing years of waiting," Trump said during a virtual address to the World Economic Forum in Davos, Switzerland.

The president stated that these power plants would not be held to climate-related targets, signaling a departure from renewable energy mandates. He specifically suggested the use of coal for emergency backup power, citing examples of facilities with coal reserves nearby for contingency purposes.

"There are some companies in the U.S. that have coal sitting right by the plant, so if there's an emergency, they can go to that," Trump said.

On his first day in office, Trump declared a national energy emergency, directing federal agencies to expedite energy infrastructure projects using emergency authorities. Shortly after, Trump unveiled a joint venture with OpenAI, Oracle, and SoftBank called Stargate, which aims to invest billions in AI infrastructure development.

The demand for power from AI-driven data centers is expected to skyrocket in the coming years. While many tech companies have focused on renewable energy sources to meet climate goals, there is increasing interest in nuclear power as a reliable option. However, analysts suggest natural gas will play a crucial role due to its abundance, reliability, and faster deployment compared to nuclear energy.

Trump proposed that power plants supplying energy to AI data centers should connect directly to those facilities rather than relying on the traditional electrical grid.

"You don't have to hook into the grid, which is old and could be taken out," Trump explained. This arrangement, known as co-location, has faced pushback from utility companies, who are concerned about losing fees and warn that removing power from the grid could lead to shortages.

The move reflects Trump’s broader efforts to bolster AI infrastructure while sidestepping traditional regulatory hurdles and environmental commitments.