Environment

Trump says he will approve power plants for AI through emergency declaration

U.S. President Donald Trump makes a virtual address to the World Economic Forum in Davos, Switzerland, on Thursday, Jan. 23, 2025. 
Bloomberg | Bloomberg | Getty Images

President Donald Trump said Thursday he will approve the construction of power plants for artificial intelligence through an emergency declaration.

“We’re going to build electric generating facilities. I’m going to get the approval under emergency declaration. I can get the approvals done myself without having to go through years of waiting,” Trump said in a virtual address to the World Economic Forum in Davos, Switzerland.

“They can fuel it with anything they want, and they may have coal as a backup,” he said of the plants.

The president declared a national energy emergency on Monday, directing federal agencies to use whatever emergency authorities they have at their disposal to expedite energy infrastructure projects.

Power demand from artificial intelligence data centers is forecast to surge in the coming years. The tech companies building the centers that support AI have primarily focused on procuring renewable energy to meet their climate goals, though they have shown a growing interest in nuclear power to meet their growing energy needs.

While the tech sector has focused on carbon-free power to meet their climate goals, analysts believe natural gas will play a pivotal role in powering AI because it’s in plentiful supply, is more reliable than renewables and can be deployed much faster than nuclear.

Trump said he wants power plants to connect directly to data centers rather than supplying electricity through the grid.

“You don’t have to hook into the grid, which is old and could be taken out,” Trump said. This setup, called co-location, has faced opposition from some utilities who are worried about losing fees and have warned taking power off the grid could lead to supply shortages.

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