Can Coal Power the AI Boom? Wyoming's Bet on a Fading Fuel

Wyoming sits atop huge reserves of carbon, but the world is shifting away to cleaner, renewable energy sources

By EVWorld.com Si Editorial Team

Artificial intelligence is hungry - famously so. Training large language models and running data centers requires staggering amounts of electricity. As the U.S. scrambles to secure energy for what some call the AI arms race, Wyoming finds itself back in the spotlight. The state, long synonymous with coal, is being pitched as a potential powerhouse for the digital age. But can a 19th-century fuel really sustain a 21st-century technology?

The pitch - coal as AI's secret weapon

The Trump administration has framed coal as essential to national competitiveness, opening millions of acres for new leases and cutting royalty rates to entice producers. The argument is simple: America needs reliable, around-the-clock power to keep AI servers humming, and coal plants can deliver it. For Wyoming, which supplies a large share of the nation's coal, this sounds like a lifeline.

The reality - markets have moved on

The market tells a different story. Coal demand has fallen for more than a decade, displaced by natural gas and renewables that are cheaper and cleaner. Even with subsidies and deregulation, coal companies show limited appetite for expansion. Recent lease auctions have attracted minimal interest, suggesting producers see little upside.

Utilities are voting with their feet. Major providers in the region continue to plan coal plant retirements, citing higher costs compared to wind, solar, and gas. For them, coal is not competitive, no matter how much political capital is spent trying to revive it.

The global context - China's dual track

Supporters of coal often point to China, which is still building coal plants. But China is simultaneously leading the world in renewable deployment, installing record amounts of wind and solar capacity. In effect, Beijing is hedging - keeping coal as backup while racing ahead with clean energy. The U.S. risks doubling down on a fuel that investors and utilities are already abandoning.

The economics of AI power

The AI boom has sparked warnings about electricity shortages. Some analysts predict data center demand could surge, but others caution that projections may be inflated by hype. If the AI bubble bursts - or even just deflates - the rationale for reviving coal could collapse.

Meanwhile, the economics of renewables continue to improve. Solar and wind are now among the cheapest sources of new electricity in much of the country, and battery storage is scaling. Nuclear power is re-entering the conversation as a carbon-free baseload option. Against this backdrop, coal looks less like a savior and more like a costly detour.

Wyoming's crossroads

For Wyoming, the stakes are high. Coal revenues have long underpinned state budgets, funding schools and infrastructure. The prospect of AI-driven demand offers a tempting narrative: extend coal's relevance and preserve jobs. But betting on coal may leave the state stranded if the market continues its shift toward cleaner, cheaper alternatives.

Some local leaders are exploring diversification, from high-plains wind to carbon capture that could blunt coal's emissions. Yet the tension remains - cling to the past, or invest in the technologies shaping the future.

The bottom line

Coal once powered America's industrial rise. But the conclusion emerging from utilities, markets, and global trends is clear: it is unlikely to power the AI revolution. The energy race of the 21st century will be won not by doubling down on yesterday's fuel, but by scaling renewables, storage, and nuclear that deliver abundant, affordable, and sustainable power. Wyoming's coal may still burn for a while. As the AI era dawns, the smarter bet is on innovation - not nostalgia.