Trump declares “beautiful clean coal” key to AI future, orders federal push to power data centers

In a sweeping executive order issued on April 8, 2025, US President Donald Trump directed federal agencies to formally reclassify coal as a “mineral” under Executive Order 14241, effectively elevating its strategic status within national energy policy. The move, aimed at reinvigorating America’s coal industry, marks a significant policy shift designed to promote energy independence, bolster grid reliability, and support the growth of emerging technologies, particularly artificial intelligence (AI) infrastructure.

Coal’s designation as a critical mineral places it on par with rare earth elements and other materials essential to national security and economic competitiveness. This reclassification grants the domestic coal sector access to fast-tracked permitting processes, loan support, and federal research funding, similar to other strategically important minerals. The policy is explicitly aligned with an earlier directive—Executive Order 14241—that prioritised American mineral development to counter foreign supply chain dependencies.

The amended classification is expected to help facilitate rapid coal development, particularly on federal lands, by unlocking access to key leasing areas and accelerating the environmental review processes under the National Environmental Policy Act.

How does the order aim to boost coal production and exports?

The order asserts that coal remains a cost-effective, abundant, and weather-resilient energy source capable of meeting rising domestic electricity demands. These demands are projected to surge amid a manufacturing revival and the construction of energy-intensive AI and data processing facilities across the country. The executive directive contends that federal energy policy must treat coal as an indispensable component of national energy security and job creation.

To this end, the Secretaries of the Interior, Agriculture, and Energy have been instructed to submit a comprehensive report within 60 days assessing coal resource availability on federal lands. This report must identify regulatory barriers, propose solutions, and evaluate the potential impact of coal production on electricity prices and grid stability. The policy further calls for prioritising coal leasing as a primary land use on identified public lands, with expedited reviews and emergency authorisations where possible.

Internationally, the order encourages the Secretary of Commerce and the US Trade Representative to identify new export markets and support offtake agreements to expand American coal’s footprint abroad. These measures are positioned as supporting allied nations’ energy needs while improving the US trade balance.

What changes will be made to environmental regulations and financing guidelines?

One of the more consequential elements of the order is its directive to federal agencies to roll back or revise policies perceived to discriminate against coal. The Environmental Protection Agency, along with the Departments of Energy, Transportation, Labor, and Treasury, must review and potentially rescind regulations or guidance that discourage coal production and coal-fired electricity generation.

Additionally, all federal agencies with authority over financing or investment—ranging from the Export-Import Bank to the International Development Finance Corporation—have been instructed to eliminate internal or external financing preferences that favour non-coal energy sources. This includes reversing elements of the 2021 US Treasury guidance that previously discouraged support for fossil fuel projects by multilateral development banks.

The order also calls on agencies to identify and expand categorical exclusions under NEPA to simplify environmental reviews for coal projects, potentially reducing delays that developers often cite as obstacles to investment.

What role will coal play in powering AI and industrial development?

Highlighting a direct link between energy policy and digital infrastructure, the order positions coal as a foundational resource to power the next wave of AI innovation. It mandates that the Departments of Commerce, Energy, and Interior identify regions with existing coal-powered infrastructure that can support the construction of AI data centers. These departments must submit a market and feasibility analysis within 60 days, aimed at identifying both technological and regulatory pathways for scaling coal-powered digital infrastructure.

The framing suggests a pivot from prior federal strategies that focused on renewable or low-emission energy sources to support AI and high-performance computing facilities. Proponents argue that baseload coal power offers the consistent energy supply required by these systems, especially in regions where renewable generation may be intermittent or grid stability is a concern.

How will the US government support coal technology and steel manufacturing?

Another central provision of the executive order focuses on the acceleration of coal-related technologies. The Department of Energy has been directed to develop and deploy next-generation coal technologies that can make coal use more efficient and environmentally sustainable. These include innovations in synthetic graphite, coal-derived battery materials, carbon fibre, and new-generation feedstocks for steelmaking and energy.

The Department of Energy is also expected to submit a detailed action plan within 90 days outlining funding strategies and technology development programmes. These efforts are designed to reposition coal not just as a fuel but as a feedstock for advanced materials in critical industries such as automotive, construction, and clean tech manufacturing.

In tandem, the order tasks the Secretaries of Energy and Interior with determining whether coal used in steel production qualifies as a “critical material” or “critical mineral” under the Energy Act of 2020. If so, metallurgical coal would also be eligible for listing on the respective critical materials lists, triggering a suite of supportive federal mechanisms including research grants, trade protections, and domestic sourcing incentives.

How does this reflect a broader shift in US energy and industrial policy?

The April 8 order represents the latest in a series of moves by the Trump administration to pivot away from the energy transition policies of prior administrations. The re-emphasis on fossil fuels—particularly coal—is part of a broader industrial policy that seeks to rebuild American manufacturing, boost domestic resource extraction, and reduce reliance on foreign energy and materials.

Historically, coal played a foundational role in American industrialisation. By 1920, coal accounted for nearly 70% of the nation’s energy supply, fuelling steel production, locomotives, and electricity generation. Although its share of US electricity production fell below 20% by the early 2020s, proponents argue that modern coal technologies, including carbon capture and utilisation, can reintegrate coal into a cleaner energy future.

However, critics warn that such a pivot could undermine progress in emissions reduction and contradict global climate targets. International financing institutions have increasingly moved away from funding coal-fired projects, and many American utilities have scheduled early coal plant retirements in favour of natural gas, wind, and solar.

Nonetheless, this executive order positions coal as a cornerstone of energy security and economic resilience in a changing geopolitical and technological landscape. With the resurgence of manufacturing and the emergence of AI and high-performance computing as energy-intensive sectors, the administration argues that an all-of-the-above strategy—led by “beautiful clean coal”—is necessary to meet growing electricity demand.

The next several months will reveal how federal agencies interpret and implement these sweeping directives. From permitting to financing and international diplomacy, the coal industry now sits at the centre of a revived national strategy that explicitly connects energy resources to strategic digital infrastructure. Whether this strategy translates into a durable market resurgence for American coal remains to be seen, but its elevation to critical mineral status signals a renewed era of federal engagement.