Coal Industry Frustrated With GOP Candidates Who Want To Kill Data Centers
Wyoming's coal industry is expressing frustration over Republican political candidates who oppose data center development, despite the sector's demand for energy potentially boosting coal production. The debate is a significant issue in the upcoming Wyoming GOP primary elections, with politicians divided on balancing economic benefits against concerns over water usage, environmental impact, and land. Governor Mark Gordon issued an executive order calling for responsible data center development, while other politicians have called for restrictions or expressed concerns.
Wyoming's coal industry leaders, including Travis Deti, executive director of the Wyoming Mining Association, are expressing frustration with Republican political candidates who oppose data center development. Deti highlights that the national data center buildout is a major driver of renewed demand for coal, contradicting some politicians' simultaneous support for coal and opposition to data centers. This division is a central theme in Wyoming's ongoing GOP primary elections for the state's U.S. House seat and governorship.
Several prominent figures are taking divergent stances: Secretary of State Chuck Gray, a U.S. House candidate, has actively opposed data centers, linking them to "woke Big Tech surveillance state" and advocating for traditional industries. Conversely, Governor Mark Gordon issued an executive order on June 3 promoting responsible and transparent data center development. Other candidates for governor, like Megan Degenfelder, advocate for responsible development rather than outright bans, while Brent Bien expresses concerns about development pace and impact on agricultural land. State Representative Steve Johnson and Senator Cheri Steinmetz also voice concerns about water usage, power rates, and the need for safeguards and scrutiny of existing tax breaks for data centers, despite the issue placing them in unexpected political company with national figures like Alexandria Ocasio-Cortez and Bernie Sanders, who have called for a moratorium.
The debate is further fueled by Wyoming's economic reliance on coal, which has seen declining production and severance tax revenues. Politicians like Gray, who previously opposed removing data center tax exemptions, now cite the unforeseen demands of the AI revolution on power grids and water resources as reasons for their changed stance. The state's agricultural communities, facing drought conditions, are particularly concerned about water usage. Senator Steinmetz even called for a poll of legislators regarding a special session to address the data center boom, citing a lack of credible information ahead of a four-year state-ordered groundwater study.
While former President Donald Trump has championed data center expansion as a means to revive the coal industry and advance technology, opponents in Wyoming emphasize that local water, food supply, and communities are also matters of national security. The political divide underscores a broader struggle within the state to balance economic development with environmental and social concerns, particularly in the context of energy demands and the evolving tech landscape.