Biden unveils AI policies to combat foreign risks for data centers and connected cars

President Biden has issued executive orders enabling AI data centers on federal lands and banning connected vehicle technology from China and Russia.

Key Policy Changes: The Biden administration has enacted two significant technology-focused executive orders and a Commerce Department rule addressing artificial intelligence infrastructure and vehicle cybersecurity.

• Federal lands will be opened for AI data center development and associated clean energy facilities
• Connected vehicle components and systems from China and Russia will be banned starting with model years 2027-2030
• New cybersecurity measures for critical infrastructure are being implemented

AI Infrastructure Initiative: The administration’s executive order positions AI development as crucial for national security and economic competitiveness while addressing power supply challenges.

• Companies using federal land for AI data centers must purchase a designated portion of American-made semiconductors
• The Bureau of Land Management will identify suitable sites for clean energy facilities supporting AI infrastructure
• Geothermal energy sources will be leveraged to power these new data centers

Vehicle Security Measures: The Commerce Department’s new rule targets cybersecurity risks in connected vehicles from foreign adversaries.

• Software restrictions begin with 2027 model year vehicles
• Hardware restrictions take effect for 2030 model year vehicles
• The ban includes vehicle connectivity systems, automated driving systems, and communication components
• Restrictions apply even to U.S.-made vehicles from companies under Chinese or Russian jurisdiction

Technical Implementation: The regulations address specific components and systems that could pose security risks.

• Affected systems include Bluetooth, cellular, satellite, and Wi-Fi modules
• The rule currently applies only to passenger vehicles, with potential expansion to commercial vehicles
• Additional measures focus on vulnerability reporting requirements for software and cloud service providers

Strategic Context: The policy changes follow recent cybersecurity incidents and reflect growing concerns about technological sovereignty.

• The measures come in response to incidents like the Salt Typhoon hack of telecom networks
• Commerce Secretary Gina Raimondo emphasized the need to protect Americans’ privacy and national security
• The policies aim to prevent foreign adversaries from accessing sensitive data through connected vehicle systems

Future Implications: These regulations signal a shift in U.S. technology infrastructure policy and could reshape the automotive and AI industries.

• The commercial vehicle sector may face similar restrictions in the future
• The success of these initiatives may depend on the incoming administration’s priorities
• The AI infrastructure expansion could significantly impact domestic semiconductor demand and energy development