Trump allies in oil and gas poised to profit from AI boom and environmental rollbacks

Trump donors in the fossil fuel industry are preparing to cash in on the rapid expansion of energy-hungry data centers and sweeping deregulatory moves under the new administration.

Andy Rowell and Nina Lakhani report for The Guardian.

In short:

• Energy Transfer and other major Trump-aligned fossil fuel companies are securing deals to power dozens of new AI and cryptocurrency data centers with fracked gas, driving up greenhouse gas emissions.
• Trump’s administration has reversed numerous environmental rules, while promoting fossil fuels as central to powering emerging tech infrastructure like AI, despite massive environmental and energy costs.
• Industry giants like EQT and Continental Resources view data center growth as the key to surging gas demand and have donated heavily to Trump-aligned Super PACs in exchange for regulatory rollbacks.

Key quote:

“This project represents our first commercial arrangement to supply natural gas directly to a data center site, and it will not be the last.”

— Energy Transfer, investor briefing

Why this matters:

The explosive growth of artificial intelligence and cryptocurrency mining is reshaping America’s energy landscape — by deepening its reliance on fossil fuels. As tech giants and startups alike race to secure the computing power needed to train ever-larger AI models or validate crypto transactions, they’re driving up demand for electricity and water at a pace utilities struggle to meet. That demand is increasingly by natural gas, thanks in part to a suite of deregulation measures ushered in by President Trump. These policy shifts have made it easier for energy companies to sidestep environmental reviews and long-term planning processes, allowing backroom deals that lock in fossil fuel infrastructure for decades. While the tech world positions these innovations as the future, the infrastructure behind them is steering toward a carbon-intensive past.

Related:

• Oil and gas leases in Arctic refuge back on track after court ruling
• Trump’s energy secretary pushes fossil fuels while dismissing renewables in public speeches
• Opinion: Trump allies aim to take U.S. energy policy back in time