Trump seeks to accelerate large-scale power projects to meet AI demand.
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The Trump administration is pushing forward large-scale power projects in full force to meet the surge in electricity demand brought by artificial intelligence and data centers.
On Thursday, the US Department of Energy announced the launch of the “Speed to Power” initiative, aiming to mobilize its technical expertise and billions of dollars in funding to respond to what is the first significant increase in energy demand in twenty years.
The Department is soliciting information from state energy offices, utility companies, and other stakeholders to identify large-scale power and grid projects that can be rapidly advanced.
This move comes with explicit support for fossil fuels. The US Department of Energy has ordered several coal and natural gas power plants previously scheduled for closure to continue operations, warning that continued shutdowns in the context of soaring electricity demand could trigger blackouts.
Using Emergency Powers and Financial Support
At the core of the “Speed to Power” initiative is information gathering and resource mobilization. The Trump administration aims to use a variety of available tools to address the rising power demands driven by AI, data centers, and electric vehicles.
The US Department of Energy is seeking input from utility companies and regional transmission operators on topics including near-term investment opportunities, project readiness, electricity demand growth expectations, and constraints the government could help resolve.
As early as the first day of his return to the White House this January, President Trump issued an order declaring an energy emergency, paving the way for rapid interventions to follow.
The Department of Energy hopes, on this basis, to effectively deploy billions of dollars in capital and financing tools, as well as relevant authorizations under the national emergency, to expand generation capacity and upgrade the grid.
Strong Support for Fossil Fuel Policy
While promoting grid expansion, the Trump administration’s policies clearly favor fossil fuels.
The Department of Energy has repeatedly acted to require coal and gas-fired power plants scheduled for retirement to remain in operation.
In July, the US Energy Information Administration stated that in the first quarter of 2025, coal usage by power plants is expected to increase by about 20% compared to the same period in 2024.
Tom Pyle, president of the American Energy Alliance, predicts that under Trump’s order or the voluntary choice of power plants, 38 coal-fired power plants originally set to close by 2028 will continue to operate.
Obstacles for Renewable Energy Projects
In stark contrast to its support for fossil fuels, renewable energy projects are encountering government-level resistance.
Trump himself claims that the rapid adoption of solar and wind power has made the US electricity system “unstable and expensive,” and on these grounds has cut most subsidies for renewables.
The Trump administration has not only blocked solar and wind development projects, but also set up financing barriers for critical infrastructure.
In July this year, the Department of Energy canceled a $4.9 billion loan guarantee. The project had originally planned to build a transmission line to deliver electricity from wind and solar projects in Kansas to cities in the Midwest and East Coast.
Although the government cites reliability concerns about renewables, it is worth noting that Texas, which has the highest share of renewables on the grid in the US, has actually seen an improvement in grid reliability in recent years.
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