Coal-Fired Power Plants Transformed into Digital Hubs
Europe and the US are facing a major structural change, where the energy transition intersects with the digital and AI boom. Will a balance be found between the energy transition and the explosion of artificial intelligence?
While coal- and gas-fired power plants powered heavy industry for more than a century, they are now poised to become the basic infrastructure for the data and artificial intelligence era.
From coal to cloud
Giants such as Microsoft and Amazon plan to convert former European power plants into data centers, according to international media. The argument is simple: these sites already provide two critical elements of digital infrastructure – connection to the grid and access to cooling water.
“You have everything already in place: water infrastructure, heat recovery capabilities,” says Bobby Hollis, Vice President of Energy at Microsoft, suggesting that logistical advantages can significantly shorten deployment time and costs.
European energy companies such as Engie (France), RWE (Germany) and Enel (Italy) see this transformation as a double opportunity: they reduce the costs associated with plant closures and obtain financial resources for investments in renewable energy.
Romania: Between the tradition of coal and the pressure of digitalization
Romania is also in the midst of a transition process. In the Jiu Valley, the Paroseni power plant – the last coal-fired power plant in the region – is due to be closed by 2032, while one of Europe’s biggest gas-fired power plants is already being built at Mintia.
Complexul Energetic Oltenia is also preparing to switch to gas, although the 2026 deadline has been postponed.
The question is whether Romania could follow Western Europe’s example by transforming its existing industrial infrastructure into digital hubs.
Coal-fired power plant locations provide access to robust power grids and hydrological resources, which are essential for AI data centers.
Artificial intelligence, the invisible energy consumer
The exponential growth of artificial intelligence comes at a huge energy cost.
Data centers are becoming the “factories” of the 21st century, but they don’t produce tangible goods, they produce data processing and algorithms.
Pressure on power grids is already visible in the US, where big tech companies face restrictions.
Recently, Google signed agreements with two US utilities to reduce AI activity during peak consumption periods. These “demand response” mechanisms – until now associated with heavy industries or cryptocurrency mining – could also become the norm for the digital sector.
Digital reindustrialization opportunity
Turning old power plants into data centers is not just a technical solution, but also an industrial strategy.
Instead of leaving abandoned infrastructure behind, Europe and the US can leverage it to support digital expansion and avoid massive imports of IT infrastructure from Asia.
In the logic of the Draghi Report on the reindustrialization of Europe, these projects can become pillars of a new industrial economy based on technology, clean energy and strategic autonomy.
However, the paradox is obvious: power plants built for fossil fuels are becoming the backbone for green technologies and AI, but the huge power demand of data centers could put pressure on grids and even consumer prices.
Without an integrated strategy, there is a risk that the energy transition will be slowed down by digital appetite.
The conversion of coal- and gas-fired power plants into digital hubs shows how the energy age and the data age are intertwining.
Romania, which is in the process of restructuring its mining and energy sector, could turn this challenge into an opportunity if it manages to link the transition away from fossil fuels with its digitalization strategy and AI expansion.
In a world where servers are becoming the new steel, the stakes are not only energy-related, but also geopolitical: whoever controls data centers and the energy that powers them also controls the future of the digital economy.
