Energy Department identifies 16 sites for AI data center development amid global expansion

The U.S. Department of Energy is leveraging its substantial land holdings to accelerate AI infrastructure development, identifying 16 federal sites primed for data center construction amid a broader industry shift toward AI-focused facilities. This initiative comes as major players like IREN pivot from cryptocurrency mining to AI data centers, while established firms NTT and CyrusOne expand their footprints in Japan and Italy respectively, highlighting the global race to build the physical backbone necessary to support advancing AI capabilities.

The big picture: The Department of Energy has identified 16 potential sites for AI infrastructure development, leveraging existing energy infrastructure that could fast-track data center construction.

• DOE released a Request for Information to explore using its land for AI infrastructure development through public-private partnerships.
• These sites feature in-place energy infrastructure with streamlined permitting processes for new energy generation, including nuclear power options.
• Energy Secretary Chris Wright emphasized the initiative aims to “power the AI revolution while continuing to deliver affordable, reliable and secure energy to the American people.”

Why this matters: Infrastructure capacity has become a critical bottleneck in AI advancement, with suitable locations for data centers increasingly scarce in high-demand regions.

• The initiative could significantly increase the speed at which new AI computing infrastructure becomes available in the United States.
• The DOE’s approach prioritizes innovative public-private partnerships to advance both AI and energy infrastructure nationwide.

Shifting industry priorities: Major companies are pivoting their business models to capitalize on the growing demand for AI infrastructure.

• Bitcoin mining firm IREN is transitioning away from cryptocurrency to focus on building AI data centers and cloud services as it completes its 50 EH/s mining expansion.
• Daniel Roberts, IREN’s co-founder and Co-CEO, confirmed the strategic shift toward “delivering scalable infrastructure for AI and HPC through our AI Cloud Services and AI Data Center businesses.”

Global expansion continues: International data center providers are building new facilities to meet AI compute demands worldwide.

• NTT has broken ground on a 50MW data center campus in Shiroi City, approximately 30km east of Tokyo, with the first facility expected to be completed by April 2027.
• CyrusOne announced plans for its second Milan data center (MIL2), which will provide 54 megawatts of IT capacity across 18,000 square meters of technical space.
• CyrusOne’s new Italian facility will operate on 100% renewable energy, including over 500 square meters of solar panels to power ancillary areas.