Monthly Analysis
Expert commentary on global trends and developments shaping coal’s vital role in society.
March 2026
AI Data Center Demand Skyrocketing
AI-driven electricity demand continues to accelerate in early 2026. Industry projections estimate that AI and data centers could account for nearly 10% of U.S. electricity demand within the next decade, up from roughly 3–4% today. Grid filings show continued concentration of new data center projects across Texas, the Midwest, and Mid-Atlantic regions.
Unlike traditional commercial loads, AI infrastructure operates continuously and requires highly reliable power. This is pushing utilities to prioritize dispatchable generation that can support 24/7 operations.
As energy policy shifts toward more reliable resources that can deliver consistent, around-the-clock power at scale, coal will remain a key component of our energy mix as AI investment accelerates. [1][2]
Sources:
[1] Chamber Business News, Arizona Chamber’s 2025 Energy Summit highlights EPA’s push for “American energy dominance”
[2] Aaron Larson, POWER, How AI Is Breathing New Life into Aging Coal-Fired Power Assets
Rare Earth Elements Extracted from Coal Tailings
Efforts to recover rare earth elements from coal tailings and coal ash continue to gain momentum entering 2026 as the U.S. works to strengthen domestic mineral supply chains. Studies estimate that more than 11 million metric tons of rare earth materials exist within U.S. coal ash reserves, representing a significant untapped resource.
Advanced extraction techniques are improving recovery rates and reducing the need for new mining activity. This reframes coal byproducts as strategic materials rather than waste.
The potential of coal-sourced rare earths comes as China continues to dominate the global processing capacity of these minerals. Increasing U.S. efforts to prioritize domestic resources and reduce reliance on foreign supply chains is certainly a significant energy and national security interest.
For the coal industry, rare earths create new opportunities to support manufacturing, defense technology, and energy infrastructure supply chains. As demand for critical minerals continues to grow, coal-related assets are likely to play an increasingly important role in supporting domestic production. [3][4]
Sources:
[3] Texas Geosciences, Coal Ash Holds Huge Cache of Rare Earth Elements
[4] Noah Lloyd, Tech Xplore, Coal tailings could solve United States' need for rare earth elements
2025 Global Coal Demand—All Time High
Global coal demand closed 2025 at a record level, reaching approximately 8.8 billion metric tons, according to international energy market assessments. Growth was driven primarily by electricity generation and industrial output in Asia, where coal continues to support economic expansion and grid stability.
While some developed economies reduced coal usage, overall global consumption remained elevated due to rising power demand from AI data centers, population growth, and industrial manufacturing. Steelmaking and cement production also contributed to sustained coal demand across multiple regions.
This record demand highlights a critical energy reality entering 2026; coal remains deeply embedded in the global energy system. Coal’s ongoing role reflects not policy preference, but practical demand driven by affordability, reliability, and industrial necessity. [5][6]
Sources:
[5] Kate Meadows, Cowboy State Daily, U.S. Breaks 15-Year Run Of Coal Declines With Increased Demand
[6] Institute for Energy Research, Global Coal Demand to Reach a New Record High this Year
Winter Storm Reliability
Severe winter weather in early 2026 once again strained power systems, driving demand spikes and triggering cold-weather reliability alerts across multiple regions. These conditions reinforced long-standing concerns about grid resilience during extreme weather events.
The industry continues to reference 2021’s winter storm in Texas as a cautionary tale. That event left more than 5.6 million Texans without power, exposing critical vulnerabilities in its fuel supply infrastructure.
Coal-fired plants demonstrated a key advantage during that crisis and similar winter events: on-site fuel storage and consistent baseload generation. During Winter Storm Fern, coal supplied approximately 40% of electricity in the Midwest’s MISO grid, 24% in PJM, and 18% in Texas, according to the Wall Street Journal, as federal regulators temporarily waived emissions rules to allow fossil-fuel plants to operate at maximum capacity.
As the harsh winter conditions materialized across parts of the country in early 2026, energy generation from dispatchable coal remained central to maintaining grid stability. [7][8][9]
Sources:
[7] National Mining Association, Coal Is the Cornerstone of U.S. Grid Reliability This Winter
[8] Emilee Speck, AccuWeather, Winter storm brings cold not seen since 2021, putting Texas power grid to the test
[9] Institute for Energy Research, Winter Storm Wrecks Power Lines as Hundreds of Thousands are Still Without Power
