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How the AI data center boom is breathing new life into dirty, old coal plants

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When the Homer City power plant—the largest coal-fired facility in Pennsylvania—shuttered in 2023, it marked the end of a dirty era for the coal plants that dominated America’s electric grid for over half a century. Now, in a whirlwind turnaround, many of them are being revived to fuel the AI era.

Earlier this year, developers announced they would take the coal plant’s corpse—and its invaluable grid interconnections—and resurrect it into the Homer City Energy Campus, a sprawling AI data center complex powered by the largest natural gas-fired power plant in the country, opening on a fast-tracked timeline in 2027.

With U.S. electricity demand projected to surge by as much as 60% through 2050 to fuel the AI boom—initiating a race against time to build sufficient power generation—the strong old bones of closed or retiring coal plants offer a shortcut to get new power projects online much more quickly. They can skip the two-year queue for high-voltage grid connections—regardless of whether these projects are for gas, wind, solar, geothermal, or even new-age nuclear.

“Our grid isn’t short on opportunity — it’s short on time,” said Carson Kearl, Enverus senior analyst for energy and AI. “These grid interconnections are up for grabs for new power projects when these coal plants roll off.

“The No. 1 priority for Big Tech has changed to [speed] to energy, and this is the fastest way to go in a lot of cases,” Kearl told Fortune.

American coal power plunged from 50% of the nation’s grid as recently as 2005 down to just 16% and falling today, courtesy of the shale gas drilling rush and the rise of renewables. But coal still represents more than half of the grid’s carbon emissions. While wind and solar power are emission-free, switching to new gas plants still represents a 60% emissions reduction from coal.

In the last two decades, as more coal plants closed, U.S. power emissions plummeted 40%, accounting for more than 75% of the nation’s total decline in carbon dioxide emissions, according to the Environmental Protection Agency.

The energy research firm Enverus estimates that at least 70 gigawatts of retired coal power capacity—enough to power 50 million homes, or almost 100 data centers—can be converted to clean (or cleaner) power sources.

Power generator and utility owner Xcel Energy (No. 319 on the Fortune 500) is in the process of converting old coal plants to both gas-fired and renewable power from Minnesota to Texas. And many more projects are on the way in the years to come, said Xcel chairman and CEO Bob Frenzel.

“Tech is looking for speed, they’re looking for electricity and, in some cases, we have both,” Frenzel told Fortune. “We’ve been able to use those interconnections quite successfully to repower with more efficient and more clean energy resources.”

Xcel Energy CEO Bob Frenzel, at the 2025 Semafor World Economy Summit, discusses energy needs and economic outlooks.

Switching to wind, solar, gas, nuclear, and more

Most new power construction in the U.S. is currently concentrated on solar, wind, and accompanying battery energy storage, but the Trump administration’s war on renewables—just when the country needs more power—means wind and solar tax credits expire after 2027.

The clean energy projects underway largely will get built—some utilizing coal interconnections—but much more coal-to-gas switching will occur to meet the needs of AI, especially in gas-rich regions such as Pennsylvania, Texas, and Colorado.

“We as an industry are racing to meet the needs of this new critical national security asset,” Frenzel said of the AI boom. “We’re excited about the opportunity, but it’s going to take an all-hands approach to get it done.

“After [renewable tax credits expire], we as a country must commercialize other assets. Gas is a great bridge fuel, and we’re going to continue to use a lot of gas,” Frenzel added.

In the 2030s, new nuclear and geothermal power facilities will come online, he said, but those generation sources require more development time and permitting hurdles.

In Sherburne County, Minnesota, Xcel is retiring its legacy coal plant, taking the first unit offline last year and fully closing it by 2030. In its place, Xcel is developing an array of solar, wind, and battery power. The project includes the longest-duration battery storage in the country, a 100-hour battery system developed by Form Energy. The goal is to power a data center hub there, Frenzel said. Xcel and Meta are working together on a Minnesota project. Amazon also recently bought adjacent land, although its plans are currently paused.

In the Texas Panhandle, Xcel just converted its Harrington coal plant to gas-fired power. Up next, is the nearby Tolk coal facility also slated for a switch to gas. Xcel plans to build about 2 gigawatts of new wind and solar power in the area to meet oil and gas industry electrification needs, as well as for the transformation of a crypto mining site into a data center complex, Frenzel said.

Likewise, Xcel is almost finished converting its Pawnee coal plant in Colorado to gas-fired power. Xcel’s Hayden coal plant in Colorado is slated for closure in 2028, and geothermal power is under consideration for that site. Xcel is working with data center developer QTS in the state.

In a more unique twist on coal-to-gas switching, the Intermountain coal plant in Utah is switching to gas, but it’s also utilizing a green hydrogen blend with the gas to make it burn cleaner. And some coal-to-gas involves using battery storage as well. The AES Petersburg coal plant in Indiana is switching to a gas-fired and battery storage combo complex.

Elsewhere in the country, even coal-to-nuclear plans are underway. Bill Gates’ TerraPower is developing a next-generation nuclear plant slated to open by 2030 on an expedited schedule—in a partnership with Sabey Data Centers—utilizing the interconnections of the Naughton coal and gas plant, which will start closing next year.

Still, even as coal plant retirements were moved up in recent years, some are being pushed backwards again toward their original closure dates now that the grid is being strained and the Trump administration is championing coal power.

For instance, Maryland’s last coal plant, Brandon Shores, was slated to close this year, but will now stay up until 2029 as a power bridge for the AI boom. Likewise, the J.H. Campbell coal plant in Michigan was extended from its May closure date until at least November.

The Trump administration’s orders to keep “beautiful clean coal” alive are only temporary. The plants are still going to close; they just received stays on their execution dates.

The “clean coal” phrasing was part of a lobbying and marketing push for more modernized—and less dirty—coal plants about 15 years ago, but the language has largely disappeared outside of the White House as coal continues to be replaced by renewables and cleaner, cheaper gas.

The coal lobbying group, Americans for Balanced Energy Choices, rebranded in 2008 as the American Coalition for Clean Coal Electricity. They gave up on that in 2019, changing to the more succinct and generically named America’s Power. Since then, utilities and railroads have left the group, leaving its membership only to coal companies.

Coal smoke and steam vapor pour out of the Bruce Mansfield Power Plant across from a largely abandoned children's park in Shippingport, Pennsylvania prior to the plant shuttering in 2019.
Coal smoke and steam vapor pour out of the Bruce Mansfield Power Plant across from a largely abandoned children’s park in Shippingport, Pennsylvania prior to the plant shuttering in 2019.

Big Appalachian gas opportunity

In July, about 85 miles west of Homer City in Pennsylvania, it was announced by the project’s developers that the old Bruce Mansfield coal plant, padlocked in 2019, would be converted to gas-fired power as the new Shippingport Power Station to help fuel the AI revolution.

That same day, the developers also publicized the largest natural gas producer in the Appalachia region, EQT, would supply both the Shippingport and Homer City projects with a combined 1.5 billion cubic feet per day of gas supplies.

“Just to put this in perspective, that’s enough natural gas to power two of New York City. Scale matters,” EQT CEO Toby Rice told Fortune. “Homer City and Shippingport are just the first steps of multiple steps in multiple projects, because I do believe that cluster effect is real. They already have connections to the grid, which is a huge fast pass.”

EQT is ready to help lead an AI tech boom in Pennsylvania and the broader Appalachia region with the advantage that it’s home to the largest natural gas field in the country, the Marcellus Shale. And EQT has its own pipeline business to connect directly to data centers as needed.

Rice is leading the charge to make natural gas as clean as possible, through improved technology and upcoming carbon capture and storage projects. It incudes a marketing push—after all, “natural gas” sounds much nicer than “methane.” “People need to understand the natural gas decarbonization train has not slowed down,” he said.

Rusty Hutson, the CEO of gas producer Diversified Energy agrees. Methane is the product, he said, and the producers don’t want to waste the gas in emissions. “We want to sell it. At the end of the day, going through a pipeline and going through a meter is much more beneficial to us than any emissions are,” Hutson told Fortune.

While EQT will focus on drilling new wells to feed the AI beast, Diversified operates more mature gas wells that are often unwanted by the biggest players.

“Data centers, especially in the Appalachian basin, are going to be a huge demand on natural gas,” Hutson said. “We can’t afford to lose any production because other companies are focused on the drill bit and not really on existing wells and existing operations. That’s where we come in to maintain and produce those wells in an efficient manner to keep them in production for longer.”

As Rice and Hutson argued, the trend is much bigger though than an Appalachia story. Enverus’ Kearl said the AI race may very well be won or lost based on how rapidly old coal plants can be repowered to other generation sources nationwide.

“Repowering isn’t just a cost play—it’s a political and logistical shortcut to growing 24/7, low-carbon power,” Kearl said.



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Hollywood writers say Warner takeover ‘must be blocked’

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Hollywood writers, producers, directors and theater owners voiced skepticism over Netflix Inc.’s proposed $82.7 billion takeover of Warner Bros. Discovery Inc.’s studio and streaming businesses, saying it threatens to undermine their interests.

The Writers Guild of America, which announced in October it would oppose any sale of Warner Bros., reiterated that view on Friday, saying the purchase by Netflix “must be blocked.”

“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the guild said in an emailed statement. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.”

The worries raised by the movie and TV industry’s biggest trade groups come against the backdrop of falling movie and TV production, slack ticket sales and steep job cuts in Hollywood. Another legacy studio, Paramount, was sold earlier this year.

Warner Bros. accounts for about a fourth of North American ticket sales — roughly $2 billion — and is being acquired by a company that has long shunned theatrical releases for its feature films. As part of the deal, Netflix co-CEO Ted Sarandos has promised Warner Bros. will continue to release moves in theaters.

“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” Michael O’Leary, chief executive officer of the theatrical trade group Cinema United, said in en emailed statement Friday. “The negative impact of this acquisition will impact theaters from the biggest circuits to one-screen independents.”

The buyout of Warner Bros. by Netflix “would be a disaster,” James Cameron, the director of some of Hollywood’s highest-grossing films in history including Titanic and Avatar, said in late November on The Town, an industry-focused podcast. “Sorry Ted, but jeez. Sarandos has gone on record saying theatrical films are dead.”

On a conference call with investors Friday, Sarandos said that his company’s resistance to releasing films in cinemas was mostly tied to “the long exclusive windows, which we don’t really think are that consumer friendly.”

The company said Friday it would “maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”

On the call, Sarandos reiterated that view, saying that, “right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros.” 

Competition from online outfits like YouTube and Netflix has forced a reckoning in Hollywood, opening the door for takeovers like the Warner Bros. deal announced Friday. Media giants including Comcast Corp., parent of NBCUniversal, are unloading cable-TV networks like MS Now and USA, and steering resources into streaming. 

In an emailed note to Warner Bros. employees on Friday, Chief Executive Officer David Zaslav said the board’s decision to sell the company “reflects the realities of an industry undergoing generational change in how stories are financed, produced, distributed, and discovered.”

The Producers Guild of America said Friday its members are “rightfully concerned about Netflix’s intended acquisition of one of our industry’s most storied and meaningful studios,” while a spokesperson for the Directors Guild of America raised concerns about future pay at Warner Bros.

“We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company,” the Directors Guild said.

In September, the DGA appointed director Christopher Nolan as its president. Nolan has previously criticized Netflix’s model of releasing films exclusively online, or simultaneously in a small number of cinemas, and has said he won’t make movies for the company.

The Screen Actors Guild said Friday that the transaction “raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.”

Oscar winner Jane Fonda spoke out on Thursday before the deal was announced. 

“Consolidation at this scale would be catastrophic for an industry built on free expression, for the creative workers who power it, and for consumers who depend on a free, independent media ecosystem to understand the world,” the star of the Netflix series Grace and Frankie wrote on the Ankler industry news website.

Netflix and Warner Bros. obviously don’t see it that way. In his statement to employees, Zaslav said “the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders.”



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4 times in 7 seconds: Trump calls Somali immigrants ‘garbage’

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He said it four times in seven seconds: Somali immigrants in the United States are “garbage.”

It was no mistake. In fact, President Donald Trump’s rhetorical attacks on immigrants have been building since he said Mexico was sending “rapists” across the border during his presidential campaign announcement a decade ago. He’s also echoed rhetoric once used by Adolf Hitler and called the 54 nations of Africa “s—-hole countries.” But with one flourish closing a two-hour Cabinet meeting Tuesday, Trump amped up his anti-immigrant rhetoric even further and ditched any claim that his administration was only seeking to remove people in the U.S. illegally.

“We don’t want ‘em in our country,” Trump said five times of the nation’s 260,000 people of Somali descent. “Let ’em go back to where they came from and fix it.” The assembled Cabinet members cheered and applauded. Vice President JD Vance could be seen pumping a fist. Defense Secretary Pete Hegseth, sitting to the president’s immediate left, told Trump on-camera, “Well said.”

The two-minute finale offered a riveting display in a nation that prides itself as being founded and enriched by immigrants, alongside an ugly history of enslaving millions of them and limiting who can come in. Trump’s U.S. Immigration and Customs Enforcement raids and deportations have reignited an age-old debate — and widened the nation’s divisions — over who can be an American, with Trump telling tens of thousands of American citizens, among others, that he doesn’t want them by virtue of their family origin.

“What he has done is brought this type of language more into the everyday conversation, more into the main,” said Carl Bon Tempo, a State University of New York at Albany history professor. “He’s, in a way, legitimated this type of language that, for many Americans for a long time, was seen as outside the bounds.”

A question that cuts to the core of American identity

Some Americans have long felt that people from certain parts of the world can never really blend in. That outsider-averse sentiment has manifested during difficult periods, such as anti-Chinese fear-mongering in the late 19th century and the imprisonment of some 120,000 Japanese Americans during World War II.

Trump, reelected with more than 77 million votes last year, has launched a whole-of-government drive to limit immigration. His order to end birthright citizenship — declaring that children born to parents who are in the United States illegally or temporarily are not American citizens despite the 14th Amendment — is being considered by the Supreme Court. He has largely frozen the country’s asylum system and drastically reduced the number of refugees it is allowed to admit. And his administration this week halted immigration applications for migrants from 19 travel-ban nations.

Immigration remains a signature issue for Trump, and he has slightly higher marks on it than on his overall job approval. According to a November AP-NORC poll, roughly 4 in 10 adults — 42% — approved of how the president is handling the issue, down from about half who approved in March. And Trump has pushed his agenda with near-daily crackdowns. On Wednesday, federal agents launched an immigration sweep in New Orleans,

There are some clues that Trump uses stronger anti-immigration rhetoric than many members of his own party. A study of 200,000 speeches in Congress and 5,000 presidential communications related to immigration between 1880 and 2020 found that the “most influential” words on the subject were terms like “enforce,” “terrorism” and “policy” from 1973 through Trump’s first presidential term.

The authors wrote in the Proceedings of the National Academy of Sciences that Trump is “the first president in modern American history to express sentiment toward immigration that is more negative than the average member of his own party.” And that was before he called thousands of Somalis in the U.S. “garbage.”

The U.S. president, embattled over other developments during the Cabinet meeting and discussions between Russian President Vladimir Putin and U.S. envoys, opted for harsh talk in his jam-packed closing.

Somali Americans, he said, “come from hell” and “contribute nothing.” They do “nothing but bitch” and “their country stinks.” Then Trump turned to a familiar target. Rep. Ilhan Omar, D-Minn., an outspoken and frequent Trump critic, “is garbage,” he said. “Her friends are garbage.”

His remarks on Somalia drew shock and condemnation from Minneapolis to Mogadishu.

“My view of the U.S. and living there has changed dramatically. I never thought a president, especially in his second term, would speak so harshly,” Ibrahim Hassan Hajji, a resident of Somalia’s capital city, told The Associated Press. “Because of this, I have no plans to travel to the U.S.”

Omar called Trump’s “obsession” with her and Somali-Americans “creepy and unhealthy.”

“We are not, and I am not, someone to be intimidated,” she said, “and we are not gonna be scapegoated.”

Trump’s influence on these issues is potent

But from the highest pulpit in the world’s biggest economy, Trump has had an undeniable influence on how people regard immigrants.

“Trump specializes in pushing the boundaries of what others have done before,” said César Cuauhtémoc García Hernández, a civil rights law professor at Ohio State University. “He is far from the first politician to embrace race-baiting xenophobia. But as president of the United States, he has more impact than most.” Domestically, Trump has “remarkable loyalty” among Republicans, he added. “Internationally, he embodies an aspiration for like-minded politicians and intellectuals.”

In Britain, attitudes toward migrants have hardened in the decade since Brexit, a vote driven in part by hostility toward immigrants from Eastern Europe. Nigel Farage, leader of the hard-right Reform U.K. party, has called unauthorized migration an “invasion” and warned of looming civil disorder.

France’s Marine Le Pen and her father built their political empire on anti-immigrant language decades before Trump entered politics. But the National Rally party has softened its rhetoric to win broader support. Le Pen often casts the issue as an administrative or policy matter.

In fact, what Trump said about people from Somalia would likely be illegal in France if uttered by anyone other than a head of state, because public insults based on a group’s national origin, ethnicity, race or religion are illegal under the country’s hate speech laws. But French law grants heads of state immunity.

One lawyer expressed concerns that Trump’s words will encourage other heads of state to use similar hate speech targeting people as groups.

“Comments saying that a population stinks — coming from a foreign head of state, a top world military and economic power — that’s never happened before,” said Paris lawyer Arié Alimi, who has worked on hate speech cases. “So here we are really crossing a very, very, very important threshold in terms of expressing racist … comments.”

But the “America first” president said he isn’t worried about others think of his increasingly polarizing rhetoric on immigration.

“I hear somebody say, ‘Oh, that’s not politically correct,’” Trump said, winding up his summation Tuesday. “I don’t care. I don’t want them.”

___

Contributing to this report are Associated Press writers Will Weissert and Linley Sanders in Washington, John Leicester in Paris, Jill Lawless in London, Evelyne Musambi in Nairobi, Kenya, and Omar Faruk in Mogadishu.



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Nearly three-quarters of Trump voters think the cost of living is bad or the worst ever

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President Donald Trump and his administration insist that costs are coming down, but voters are skeptical, including those who put him back in the White House.

Despite Republicans getting hammered on affordability in off-year elections last month, Trump continues to downplay the issue, contrasting with his message while campaigning last year.

“The word affordability is a con job by the Democrats,” Trump said during a Cabinet meeting on Tuesday. “The word affordability is a Democrat scam.”

But a new Politico poll found that 37% of Americans who voted for him in 2024 believe the cost of living is the worst they can ever remember, and 34% say it’s bad but can think of other times when it was worse.

The White House has said Trump inherited an inflationary economy from President Joe Biden and point to certain essentials that have come down since Trump began his second term, such as gasoline prices.

The poll shows that 57% of Trump voters say Biden still bears full or almost full responsibility for today’s economy. But 25% blame Trump completely or almost completely.

That’s as the annual rate of consumer inflation has steadily picked up since Trump launched his global trade war in April, and grocery prices have gained 1.4% between January and September.

Meanwhile, Vice President JD Vance pleaded for “patience” on the economy last month as Americans want to see prices decline, not just grow at a slower pace.

Even a marginal erosion in Trump’s electoral coalition could tip the scales in next year’s midterm elections, when the president will not be on the ballot to draw supporters.

A soft spot could be Republicans who don’t identify as “MAGA.” Among those particular voters, 29% said Trump has had a chance to change things in the economy but hasn’t taken it versus 11% of MAGA voters who said that.

Across all voters, 45% named groceries as the most challenging things to afford, followed by housing (38%) and health care (34%), according to the Politico poll.

The poll comes as wealthier households are having trouble affording basics, while discount retailers like Walmart and even Dollar Tree are seeing more higher-income customers.

And in a viral Substack post last month, Michael Green, chief strategist and portfolio manager for Simplify Asset Management, argued that the real poverty line should be around $140,000.

“If the crisis threshold—the floor below which families cannot function—is honestly updated to current spending patterns, it lands at $140,000,” he wrote. “What does that tell you about the $31,200 line we still use? It tells you we are measuring starvation.”



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