economy
AI's insatiable appetite for electricity could revive a forsaken energy source
President Trump and Energy Secretary Chris Wright are working hard to keep coal alive as part of a robust grid.
TL;DR
- The exponential growth of data centers is driving a massive increase in electricity demand.
- Coal, a historically declining energy source, is being considered for a comeback due to data center power needs.
- Babcock & Wilcox (B&W), an engineering and construction company, has a significant backlog and is seeing increased interest in its services, particularly for natural gas power plants.
- Political support from President Trump and Energy Secretary Chris Wright is actively working to keep coal plants operational and prevent their closure.
- Controversies exist regarding B&W's stock performance, its contract with Applied Digital via Base Electron, and its relationship with B. Riley, a brokerage firm under SEC investigation.
- Despite environmental drawbacks, coal is seen as vital for grid baseload power and backup for renewables, especially with the increasing energy demands.
- Companies like Peabody Energy, Core Natural Resources, and Alliance Resource Partners could benefit if efforts to preserve coal plants succeed.
- The data center boom has broad implications for various industries, with utilities seeking growth and capital expansion.