AI data centers on federal land powered by clean energy

President Biden signed an executive order in January 2025 to accelerate the development of AI infrastructure in the United States, focusing on data centers and clean energy facilities while balancing environmental and economic considerations.

Core objectives: The executive order establishes a framework for rapidly expanding AI infrastructure capabilities while prioritizing clean energy integration.

• Federal agencies must expedite AI infrastructure development on government properties
• The Department of Defense and Department of Energy will each designate three sites for private-sector AI data centers
• Private developers will be responsible for construction costs and must implement clean power generation
• Special provisions ensure access for small and medium-sized AI companies

Infrastructure development strategy: The initiative creates a streamlined approach for building essential AI facilities while addressing power needs.

• The Interior Department will identify and evaluate suitable federal lands for both data centers and clean energy projects
• The order facilitates faster grid connections and simplified permitting processes
• Projections indicate leading AI developers may require data centers with up to 5 gigawatts capacity by 2028
• The plan aims to accelerate clean energy transition without increasing costs for average Americans

Key limitations and considerations: Several important factors remain unaddressed or require further attention.

• The order does not specifically address concerns about water consumption by data centers
• Implementation timeline and effectiveness may be impacted by the upcoming administration change
• The initiative follows recent restrictions on AI chip exports, suggesting a broader strategic approach to AI development

Policy implications and future outlook: The executive order represents a significant shift in federal AI infrastructure policy, though its long-term impact remains uncertain as the incoming Trump administration may choose to maintain or rescind these directives. This initiative highlights the growing recognition of AI infrastructure as a critical national priority, while also demonstrating the complex balance between technological advancement, environmental responsibility, and economic considerations.