Why are coal equities dipping while the AI data centre crunch and Iran crisis squeeze LNG supply?

**Japan, South Korea, and China** are the primary nations that have aggressively turned to Australia for emergency energy supplies following the closure of the Strait of Hormuz. With up to 20% of the world's LNG supply stranded in Qatar due to the Iran crisis, Asian nations are desperate to secure replacement cargoes.

**Japan** is temporarily leaning on fossil fuels to meet a sudden energy surge from its domestic semiconductor revival and AI data center boom. To cope with the immediate power crunch, the government has pivoted to allow an expansion of coal-fired power generation.

**South Korean** utilities have rushed to secure Australian high-calorific value (High-CV) thermal coal as a direct substitute to keep their technology manufacturing sectors running without facing blackouts.

By far the largest user, consuming over **55% of global coal**. While **China** leads the world in building solar and wind energy, its massive AI industry and advanced chip packaging networks are still heavily propped up by coal to ensure grid stability

Despite aggressive clean energy targets, **Taiwan** remains overwhelmingly locked into fossil fuels to prevent catastrophic industrial blackouts.

**India** consumes roughly **11% of global coal**. Driven by a massive domestic tech ecosystem boom and manufacturing push, India is expanding its coal capacity alongside its renewables to prevent power deficits.

**Vietnam** recorded the **fastest coal consumption growth in the world at 9.3%**. Vietnam's booming tech manufacturing sector and new data centers are heavily reliant on the expansion of coal-fired grids.

**Indonesia** closely followed Vietnam with a **9.0% spike in coal consumption**. It serves as a prime destination for outsourced digital infrastructure, backing its grid with cheap, abundant domestic coal.