OK, we were talking about coal plants, they use fuel measured by the metric ton, that plant you set near the source of fuel.
If you have a magic power plant that does not need fuel, then there is no advantage to being near a fuel source. But if that magic power plant uses steam turbines, nobody is going to want it in their neighborhood plus big turbines make power for less money than a bunch of little ones so you still end up with a big plant sending power over wires. Even if the magic doesn’t come any bigger than 1 Mw, you’d use multiple units to feed steam into a big turbine.
Since a couple of billion dollars are invested in infrastructure, new power plants will probably be on or near the sites of the old ones.
There is a market for 1MW power plants, but the competition in that market is not going to be coal-fired. It’s going to be something that can be piped, like natural gas.