Nuclear and Coal: A Second Chance in the Age of AI
In a surprising turn of events, nuclear power and coal, two energy sources that have faced challenges in recent years, are getting a second chance, this time with the buzz around artificial intelligence (AI).
Nuclear Power: A New Lease of Life
The Trump administration has been actively promoting nuclear energy as a solution to AI's energy needs. In May 2025, the president signed a series of executive orders to boost nuclear energy in the US, including the plan to construct 10 new large reactors by 2030. This push has led to breakthroughs from smaller startups and a reshuffling of the country's nuclear regulator.
Despite the positive developments, the practicalities of nuclear energy leave its future in doubt. Most of nuclear's costs come from construction, and critics are wary of juiced-up valuations for small modular reactor companies.
Relevance to North East India
The developments in the nuclear sector in the US have implications for the global nuclear industry, including potential investments and technology transfer opportunities for the North East region of India, which is rich in uranium reserves.
Coal: A Lifeline Extended
In April 2025, President Trump signed executive orders to boost US coal to power AI. Two coal plants that were slated to be retired have been ordered to stay online via emergency order. The administration has also scrambled to make it easier to run coal plants and do away with pollution regulation.
While these efforts may have extended a lifeline to coal, a complete recovery for the industry is still an open question. A recent analysis of the US power sector finds that almost all of the 10 largest utilities in the US are significantly slashing their reliance on coal.
Relevance to North East India
The ongoing struggle of the coal industry in the US may have implications for the Indian coal industry, particularly in the North East region, which is home to several coal-producing states. The region's coal industry may need to adapt to changing global market dynamics to remain competitive.
The Future of Energy in the Age of AI
As the Trump administration pushes for nuclear and coal, the question remains whether these energy sources can compete with renewable energy, which remains some of the cheapest forms of energy around. While AI has set Big Tech back from its climate-change goals, these companies are theoretically still committed to not frying the planet.
As other countries continue massive buildouts of renewable energy, the US may want to reconsider its energy playbook if it wants to compete with China in the AI race.
Reflections and Looking Forward
The future of energy in the age of AI is uncertain, but one thing is clear: the energy industry will continue to evolve, and the US, along with the North East region of India, will need to adapt to stay competitive. The push for nuclear and coal may provide short-term benefits, but the long-term success of these energy sources will depend on their ability to compete with renewable energy in a rapidly changing market.