US data centers are increasingly relying on coal-powered energy. This trend is driven by high natural gas prices and escalating electricity demand from growing data center operations. Financial services firm Jefferies reports that data center operators are rapidly seeking to connect new capacity to the grid. Accelerated load growth is anticipated between 2026 and 2028. This surge in demand is contributing to an unexpected increase in coal generation, which has risen nearly 20 percent year-to-date. Jefferies has raised its estimate for coal generation by approximately 11 percent. Coal generation is expected to remain elevated through 2027 due to favorable fuel pricing compared to natural gas for existing plants. Concerns were raised last year that the increased energy demands of data centers could strain existing generation capacity. This could potentially lead to the extended operation of coal-fired power plants. Similar energy challenges are being observed in other regions, highlighting the continued reliance on coal.