The U.S. Department of the Interior’s expedited permitting of the Velvet-Wood uranium and vanadium mine in Utah, announced on May 12, 2025, signals a bold response to the national energy emergency declared by President Donald J. Trump. Coupled with discussions around thorium-based nuclear reactors and the potential revival of coal plants, this move aims to secure energy for AI data centers, strengthen the grid, and enhance national security. The Velvet-Wood project, as reported by ZeroHedge and the DOI, underscores America’s push for energy independence amid surging AI-driven power demands. This article explores the Velvet-Wood initiative, its implications for AI data centers, the role of thorium and coal, and the broader impact on the U.S. energy landscape. Read the DOI press release.
Velvet-Wood Mine: Fueling Nuclear Power
The Velvet-Wood mine in San Juan County, Utah, is set to produce uranium and vanadium, critical for nuclear reactors and advanced alloys, respectively. The DOI’s emergency permitting, slashing environmental reviews to 14 days under the National Environmental Policy Act and other regulations, addresses America’s “dangerous reliance” on imported uranium, with 99% of U.S. nuclear fuel sourced abroad in 2023, per ZeroHedge. The mine, operated by Anfield Energy, will leverage existing Velvet Mine infrastructure, minimizing surface disturbance to three acres. If approved, it will feed the nearby Shootaring Canyon uranium mill, reducing import dependence and supporting AI data centers’ energy needs. Explore ZeroHedge’s coverage.
[](https://www.zerohedge.com/commodities/us-fast-tracking-uranium-mine-permit-meet-urgent-energy-demands)[](https://www.doi.gov/pressreleases/interior-expedites-permitting-critical-energy-project-address-national-energy)AI Data Centers and Uranium Demand
AI data centers, projected to consume 9% of U.S. electricity by 2030, require reliable, carbon-free power, making nuclear energy a prime solution. Projects like OpenAI’s 200 MW Stargate facility and Google’s 1 MW rack designs demand robust power infrastructure, with uranium as the backbone for nuclear reactors. Velvet-Wood’s output will support facilities like Amazon’s nuclear-powered Pennsylvania campus, ensuring domestic fuel for AI-driven hyperscale growth. Posts on X highlight the urgency, with Anfield Energy’s stock soaring 42% after the permitting announcement, reflecting market confidence in uranium’s role. Learn about Stargate’s scale.
[](https://x.com/quakes99/status/1922022162333868441)Thorium: A Potential Nuclear Alternative
While uranium dominates nuclear energy, thorium-based reactors are gaining attention as a safer, more sustainable alternative. A ZeroHedge report notes China’s 2025 unveiling of a meltdown-proof thorium reactor, leveraging U.S. research from the 1950s. Thorium offers higher fuel burn-up rates (55,000 MWd/T vs. uranium’s 7,000 MWd/T) and reduces plutonium waste by over 80%, making it ideal for AI data centers’ long-term needs. The U.S., through partnerships like Clean Core Thorium Energy with Texas A&M and Idaho National Laboratory, is developing thorium-based ANEEL fuel for existing reactors. Velvet-Wood’s uranium focus could complement thorium initiatives, diversifying nuclear options for energy-intensive AI applications. Read about thorium reactors.
[](https://www.zerohedge.com/energy/china-unveils-worlds-1st-meltdown-proof-thorium-reactor)Coal as an Interim Solution
To meet immediate energy demands, the Trump administration is exploring coal plant reopenings and new builds, as outlined in a ZeroHedge article. An April 2025 executive order aims to reverse coal leasing moratoriums, designating coal a “critical mineral” to boost its strategic role. Coal, supplying 15% of U.S. electricity in 2023, offers a reliable interim solution for AI data centers while nuclear capacity ramps up. The administration’s rollback of mercury and carbon regulations, combined with plans to reopen shuttered plants, could bridge the gap, though critics warn of environmental trade-offs. This strategy aligns with Interior Secretary Doug Burgum’s emphasis on “affordable and reliable” energy for data centers. Explore coal’s revival.
[](https://www.zerohedge.com/markets/trump-set-sign-exec-order-boosting-domestic-mining-and-coal)Impact on the U.S. Energy Grid
The U.S. grid faces strain from AI data centers and electrification, with the North American Electric Reliability Corporation warning of shortage risks by 2035. Velvet-Wood’s uranium will bolster nuclear capacity, while thorium and coal could diversify supply. The DOI’s FAST-41 program, streamlining permits for critical minerals, and the Department of Energy’s site assessments for AI data centers on federal land enhance grid resilience. However, coal’s resurgence raises sustainability concerns, as noted by the Sierra Club, which criticizes rushed reviews for risking environmental harm. Balancing these energy sources will be critical to avoid blackouts and support AI growth. Learn about FAST-41.
[](https://www.doi.gov/pressreleases/trump-administration-adds-key-mining-projects-fast-41)[](https://www.zerohedge.com/energy/us-coal-plants-shutter-renewed-focus-nuclear)National Security and Economic Benefits
The Velvet-Wood project addresses national security risks from foreign mineral dependence, as highlighted in Trump’s energy emergency declaration. China and Russia dominate uranium and vanadium markets, posing threats to U.S. defense and AI industries. Domestic production from Velvet-Wood, potentially paired with thorium development, strengthens supply chains for nuclear reactors and aerospace alloys. Economically, the project will create jobs and reduce import costs, with the DOE estimating billions in savings from secure mineral chains. Coal plant reopenings could further stimulate mining communities, though long-term reliance may face market and regulatory challenges. Read about mineral security.
[](https://www.zerohedge.com/commodities/how-ukraine-minerals-deal-supports-us-strategy-and-ukrainian-security)Challenges and Sustainability Concerns
Expedited permitting for Velvet-Wood and coal initiatives risks environmental oversight, with the Sierra Club warning that 14-day reviews may miss hazards, potentially polluting air and water. Thorium reactors, while promising, face regulatory and fuel supply hurdles, with the DOE’s disposal of uranium-233 stocks drawing criticism from advocates like the Thorium Energy Alliance. Coal’s revival, though interim, could delay renewable transitions, conflicting with net-zero goals of tech giants like Google. Innovations like 3D-printed transformers and immersion cooling could mitigate some impacts by improving efficiency. Explore thorium challenges.
[](https://www.zerohedge.com/energy/nuclear-energy-world-awaits-trump)Looking Ahead
The Velvet-Wood mine, alongside thorium exploration and coal’s interim role, positions the U.S. to meet AI data center demands while advancing energy independence. By 2030, domestic uranium and vanadium could power nuclear-driven AI facilities, with thorium offering a sustainable long-term option. Coal’s resurgence may provide short-term relief but risks environmental backlash. As projects like Stargate and Google’s Arizona campus scale, the U.S. must balance speed, sustainability, and security to lead in AI and energy. The Velvet-Wood project sets a precedent for rapid, responsible energy development, shaping a resilient future. Discover Google’s Arizona project.