President Biden on Jan. 14 signed an executive order that directs certain federal agencies to make federal sites available for artificial intelligence data centers and new clean power facilities, facilitate this infrastructure’s interconnection to the electric grid, fulfill permitting obligations expeditiously, and advance transmission development around federal sites.
The executive order directs the Department of Defense and the Department of Energy to lease federal sites where the private sector can build frontier AI infrastructure at speed and scale.
To accelerate AI infrastructure development, agencies will leverage their authorities to:
- Lease federal sites owned by the Department of Defense (DOD) and Department of Energy (DOE) to host gigawatt-scale AI data centers. DOD and DOE will select sites where the private sector can build AI data centers and clean power facilities based on those sites’ accessibility to high-capacity transmission infrastructure and minimized adverse effects on communities, the natural environment, and commercial resources. After selecting sites, DOD and DOE will hold competitive solicitations for proposals to lease these sites for building, owning, and operating large-scale AI infrastructure—all at private expense.
- Catalyze deployment of new clean energy generation to support AI infrastructure. Developers selected to build on DOD and DOE sites will be required to bring online sufficient clean energy generation resources to match the full electricity needs of their data centers, consistent with applicable law. To support these efforts, the Department of Interior will identify lands it manages that are suitable for clean energy that can support data centers on DOE and DOD sites, while enhancing permitting processes for geothermal projects. DOE will take further steps to promote distributed energy resources, advance siting of clean generation resources at existing points of interconnection, and support the safe and responsible deployment of nuclear energy, the White House said.
- Prioritize full and expeditious permitting of AI infrastructure on federal sites. Agencies will prioritize and dedicate staff toward permitting this infrastructure in a timely manner, and DOD will immediately undertake environmental analyses that will improve the speed and accuracy of future site-specific reviews. Agencies will identify further opportunities to support expeditious permitting at these sites, such as by applying or establishing “categorical exclusions”—the fastest form of review under the National Environmental Policy Act—for infrastructure that does not significantly affect the environment.
- Accelerate transmission development around federal sites. To help ensure the timely operation of AI infrastructure on federal sites, DOE will take appropriate steps to coordinate with developers in constructing, financing, facilitating, and planning the upgrade and development of transmission lines around those sites. To facilitate this work, DOE will also collect information to improve transmission planning in these regions, such as utility data on transmission congestion. Additionally, DOD, DOE, and the Department of Commerce will support producers of transformers and other grid components critical for AI infrastructure—including through appropriate steps to establish equipment reserves—as federal agencies explore loan-guarantee programs to advance AI infrastructure development.
- Facilitate interconnection of AI infrastructure to the electric grid. DOE will engage utilities on their requirements for interconnecting AI infrastructure on federal sites and on opportunities to accelerate interconnection via grid-enhancing technologies, operational changes, and other measures. DOE will also share information about underutilized points interconnection that can serve federal sites and on clean energy projects that have preexisting interconnection approvals but are not yet built.
- Ensure low electricity prices for consumers. Developers selected to build on DOD and DOE sites will be required, consistent with applicable law, to pay all costs of building and operating AI infrastructure so that this development does not raise electricity prices for consumers. Agencies will also complete a study on the effects of all AI data centers on electricity prices, and DOE will provide technical assistance to state public utility commissions regarding electricity tariff designs that can support connecting new large customers with clean energy.
- Advance allies and partners’ development of AI infrastructure. "The Department of State will engage allies and partners on steps to build trusted AI infrastructure around the world. This work will support global efforts to advance the development of clean energy technologies, such as small modular nuclear reactors; catalyze investment in AI infrastructure; and strengthen data center safety and security," the White
Lease Obligations for Developers on Federal Sites
“The buildout of AI infrastructure must not only advance national security and competitiveness but also support U.S. clean energy leadership, a competitive technology ecosystem, low consumer prices, workers building AI infrastructure, and communities near it,” the White House said.
To hold AI developers accountable, the Executive Order outlines certain contractual obligations that DOD and DOE will impose on developers on federal sites, consistent with applicable law.
Those obligations include:
- Paying the full cost of building, operating, and maintaining AI infrastructure including the costs of building new data centers and clean power facilities, transmission development and upgrades.
- Procuring new clean energy generation resources that can be delivered to the data center and that accurately match their electricity and capacity needs. This buildout will prevent electricity price increases and advance U.S. energy leadership, the White House said.
- Strengthening lab-security requirements and evaluating the national security implications of AI models developed on federal sites. The evaluations will assess models for risks to safety and security, as well as their potential to advance national-security objectives.
- Adhering to high labor standards, promoting positive labor-management relations,and paying workers prevailing wages.
- Purchasing an appropriate share of domestically manufactured semiconductors to help ensure a robust domestic semiconductor supply chain.
