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US utility wins coal plant bid amid AI power surge

Financial Times Companies •
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American Electric Power agreed to acquire Longview’s coal plant, a 710‑megawatt facility in West Virginia, after outbidding a data‑center developer in a competitive bidding process. The utility serves 5.6 million customers across 11 states.

The deal reflects rising US electricity demand, projected to increase 39 % by 2035 (ICF). Coal’s share of generation fell 63.7 % since 2007 but rose 1.5 % since Jan 2025 (IEA). AEP also holds a permit for a 1,200 MW gas plant on the site.

The Trump administration is delaying closures and investing >$1 bn to revive coal. Tech firms, aiming for clean power, sometimes turn to dirtier sources due to grid constraints; e.g., Elon Musk’s Colossus 2 used natural‑gas turbines. The Longview bidder considered taking the plant off‑grid for its AI facility, which would have cut power for ~355,000 homes.

AEP says the purchase meets growing PJM demand, where it has 18 GW of contracted data‑center capacity. West Virginia lawmakers seek to boost coal via AI‑related bills, while locals worry about price and water impacts.