Indiana Governor Mike Braun issued an executive order directing the state's Secretary of Energy and Natural Resources to identify pathways for reopening retired coal plants or preventing the closure of operating ones. The directive targets powering new artificial intelligence data center projects that major technology companies propose for the state.
The order represents a reversal of decades-long trends in Indiana energy policy. Coal generation in the state has declined substantially, with several plants shut down over the past 15 years due to economics and environmental regulations. Data centers consume enormous amounts of electricity continuously. A single large facility can demand 500 megawatts or more of power generation capacity.
Tech companies including Microsoft, Google, and Amazon have announced plans for expanded data center operations across the Midwest, seeking reliable baseload power sources. Indiana's existing natural gas infrastructure and proximity to transmission lines make it attractive. Braun's order positions coal as a solution to meet these power demands.
The strategy faces multiple headwinds. Coal plants require substantial capital investment to reactivate. Environmental regulations under the Clean Air Act impose costs on coal operations through emissions controls. Operational coal plants in Indiana already struggle with higher fuel and compliance costs compared to natural gas alternatives. Renewable energy has become cheaper than coal in most markets, with solar and wind installation costs dropping 90 percent over the past decade.
Data center operators themselves have made renewable energy commitments. Microsoft has pledged carbon neutrality by 2030. Google committed to operating entirely on carbon-free energy by 2030. Using retired coal plants would conflict with these corporate sustainability goals and expose companies to stakeholder pressure.
Indiana's coal industry employed roughly 2,000 workers in 2024, down from 8,000 in 2005. Braun's order appeals to remaining coal workers and communities dependent on coal tax revenue. However, the economics of coal revival remain unfavorable even with state support. Natural