President Joe Biden signed an executive order on January 14, 2025, aimed at boosting the construction of artificial intelligence (AI) infrastructure on federal land. This move is designed to maintain America’s competitive edge in AI technology development while addressing the growing demand for data center capacity.
The order directs the Department of Defense (DOD) and Department of Energy (DOE) to identify at least three sites each on federal land that could be leased for AI data center construction. These “frontier AI data centers” are expected to be gigawatt-scale facilities capable of supporting cutting-edge AI models.
The executive order outlines a comprehensive plan for developing AI-focused data centers on federal land. It emphasizes strategic site selection, prioritizing locations with suitable terrain, minimal environmental impact, and proximity to high-capacity transmission infrastructure and telecommunications networks. Additionally, the order mandates that developers bring online sufficient clean energy generation to fully power their data centers, potentially utilizing land managed by the Bureau of Land Management.
The implementation process involves a competitive solicitation for proposals from interested companies, with ambitious timeline goals aiming to begin construction by early 2026 and commence operations by the end of 2027. The order also sets high standards for labor practices, including the use of project labor agreements and payment of prevailing wages, while requiring that an “appropriate share” of semiconductors used in these facilities be produced domestically.
Environmental considerations play a crucial role in the order, with federal agencies tasked to conduct site environmental reviews prior to project selection and enhance permitting processes for geothermal projects. This comprehensive approach aims to balance technological advancement with environmental stewardship and economic development.
The executive order addresses potential challenges by directing agencies to collaborate with equipment manufacturers to ensure a sufficient supply of critical components, such as transformers, and to work with utilities to facilitate grid interconnection. Additionally, it emphasizes the importance of advancing the siting of clean energy sources at existing grid interconnection points and supports the development of nuclear energy.
This initiative is not without its complexities. Developers will need to navigate various requirements, including bringing sufficient clean energy online, paying for all infrastructure costs, and adhering to specific labor and sourcing standards.
The order reflects the Biden administration’s strategy to leverage federal resources to accelerate AI development while promoting clean energy adoption. It also aims to address the massive energy needs of rapidly growing AI technologies.
As the AI sector continues to expand, this executive order positions the United States to lead in both technological advancement and sustainable infrastructure development. However, the success of this initiative will depend on the effective collaboration between government agencies, private sector companies, and local communities. The coming months will be crucial as federal agencies work to meet the tight deadlines for site identification and proposal solicitation.
