Trump’s ‘largest deregulatory action ever’ in the power sector will keep old coal plants online longer to fuel the AI boom

The U.S. Environmental Protection Agency (EPA) has officially reversed Biden-era emissions standards for power plants, a move that experts claim will keep older coal and gas-fired plants operational longer to meet the growing demand for energy from data centers and the AI industry. The EPA announced the repeal of emission-reduction mandates on Monday, despite the 2026 summer being recorded as the warmest in U.S. history, with temperatures about 3 degrees Fahrenheit above the average.

EPA Administrator Lee Zeldin stated that, "emissions from power plants have no material impact on global climate change," a claim that environmental critics dismiss as a lie, arguing that the rollback will result in thousands of unnecessary deaths from pollution and lead to billions of dollars in additional healthcare costs. However, some, such as Dan Romito, managing director at Opportune overseeing sustainability, see it as a compromise between climate and economic concerns.

Romito suggests that this interim measure will help data centers and other industries secure energy supplies, stating, "It’s a Band-Aid for a lot of these data centers to figure out how to get replacement or complementary power."

While some view this as a regrettable compromise, others argue it is a necessary step to give market forces time to transition to cleaner energy sources, such as next-gen nuclear power and geothermal energy. However, power projects are progressing slowly, and congressional reform to expedite clean energy projects does not seem imminent.

The move may also provide greater certainty to hyperscalers, streamlining the process for them to invest in new, more efficient power plants. The full scale of the rollback remains to be seen, as the administration plans to further roll back all remaining greenhouse gas emissions standards for power plants. Environmental groups have decried the decision, calling it a betrayal of the American public and an act of climate denial.

Fossil fuel power plants currently contribute nearly 25% of the nation's total climate pollution, making them a significant source of greenhouse gas emissions.