I'm LongbridgeAI, I can summarize articles.President Trump is reportedly moving to revive the coal industry with a nearly $700 million initiative under the Defense Production Act, supporting new coal-fired power plants and an export terminal. This effort aims to expand domestic energy supply amid rising demand from AI data centers. The announcement highlights coal-linked ETFs like COAL and utility funds such as XLU and VPU, alongside stocks of producers like Peabody Energy and transport firms CSX and Norfolk Southern.
Coal-related sector ETFs and stocks could be in focus Thursday on nearly $700 million White House initiative to support the construction of coal-fired power plants and a coal export terminal, reflecting a broader effort to expand domestic energy supply amid rising electricity demand.
According to a Bloomberg report, President Donald Trump will deliver the funding for the country’s coal plants and an export terminal in California under the 1950 Defense Production Act, with lawmakers and governors from coal-rich states, including Wyoming and West Virginia, invited to the White House for the session on Thursday.
Coal-Linked ETFs In Focus
The proposal puts coal-focused ETFs on investors’ radar, particularly the Range Global Coal Index ETF (NYSE:COAL), which provides exposure to companies engaged in coal mining and related activities.
According to Benzinga data, the fund carries a net expense ratio of 0.85% and 68.26 million in assets under management (AUM) and trades an average daily volume of 77,370,000 shares. It has increased nearly 22% since the start of the year and about 64% over the past year.
Price Action: COAL closed 0.7% lower on Wednesday.
The announcement could also draw attention to utility-focused funds such as the Utilities Select Sector SPDR Fund (NYSE:XLU) and the Vanguard Utilities ETF (NYSE:VPU), which offer exposure to utility operators and electricity providers.
Price Action: VPU and XLU closed lower at 0.55% and 0.43%, respectively on Wednesday.
Stocks On Watch
Among individual equities, coal producers are likely to attract attention, including Peabody Energy Corp (NYSE:BTU), Core Natural Resources Inc (NYSE:CNR) and Alliance Resource Partners LP (NASDAQ:ARLP), which have exposure to coal mining and production across the U.S..
The proposal could also place a spotlight on transportation companies such as CSX Corp (NASDAQ:CSX) and Norfolk Southern Corp (NYSE:NSC) , given coal’s longstanding role as a key freight commodity for U.S. rail operators and the potential for increased export activity through a dedicated coal export terminal.
Could Coal Play A Role In The AI Buildout?
The proposal comes at a time when as policymakers and energy companies evaluate how to meet rising electricity demand across the U.S., including from the rapid expansion of data centers that support artificial intelligence applications.
According to the U.S. Department of Energy, data centers are among the most energy-intensive building types, consuming between 10 and 50 times more energy per floor space than a typical commercial office building, highlighting the growing power needs associated with digital infrastructure.
Trump is expected to make an official announcement "on Beautiful, Clean Coal " at 3 PM, Bloomberg report added.
Benzinga Edge Stock Rankings indicate COAL has a Momentum score in the 83rd percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Joshua Sukoff