Los Angeles — On Tuesday, President Joe Biden took a significant step by signing an executive order focused on the advancement of artificial intelligence (AI) within the United States. This directive aims to expedite the creation of essential infrastructure for AI, such as large data centers and clean energy facilities, ensuring they can be established quickly and on a large scale across the country.
The order instructs federal agencies to elevate the speed of developing AI infrastructure on government properties while implementing necessary safeguards for developers operating in those areas. Certain agencies will facilitate the establishment of AI data centers and clean energy projects, enhancing connectivity to the electric grid and streamlining the permitting processes.
As the demand for technological services continues to rise, the need for electricity in data centers has surged significantly. A recent report from the Department of Energy indicated a tripling of electricity demand for data centers in the last decade, with projections suggesting a further doubling or tripling by 2028, potentially accounting for up to 12% of the nation’s total electricity consumption.
Biden emphasized the critical nature of AI’s potential benefits, stating it could bring substantial improvements in areas such as healthcare and community safety. He underscored the importance of responsible AI development while stressing that the country should not fall behind in technological advancements. Additionally, he remarked on the necessity of maintaining environmental standards to ensure clean air and water are protected.
Under the new executive order, both the Departments of Defense and Energy will pinpoint at least three federal sites where private companies can construct AI data centers. These agencies are tasked with soliciting private sector bids for building these facilities. Developers will need to finance the construction and ensure that clean energy sources adequately meet their data center needs. Although developers will lease land from the government, they will retain ownership of any materials and infrastructure developed on the site.
The impending transition to Donald Trump’s administration raises questions about whether this new order will be upheld or revoked. Nevertheless, experts indicate that addressing the interconnection of energy-consuming data centers to renewable electricity sources is essential for maintaining a stable power supply and avoiding potential blackouts.
Biden articulated that these initiatives aim to enhance the clean energy transition, ensuring they are conducted with regard for local communities and without imposing additional costs on the average citizen. Developers chosen to construct AI infrastructures will cover all associated expenditures to minimize impacts on electricity prices for consumers.
Furthermore, the order mandates that the development of AI data centers on federal properties adhere to public labor agreements. Specific sites will be designated for small and medium-sized AI enterprises, according to government officials. A comprehensive study on the implications of AI data centers on electricity pricing will also be undertaken, with technical support from the Department of Energy provided to state public utility commissions.
In addition, the Interior Department will identify land suitable for clean energy and AI data center development on federally managed properties. Officials expect that leading AI developers may seek data centers with up to five gigawatts of capacity by 2028 due to rapidly escalating computing power demands.
The establishment of a nationwide network of data centers is crucial for robust AI operations, particularly in relation to national security. Strategies to build this infrastructure domestically will mitigate risks associated with dependency on foreign nations for AI resources, particularly concerning the military and overall national security.
While the executive order is aligned with the administration’s broader aspirations for AI regulation and oversight, it comes with mixed reactions. Some technology sector representatives have welcomed the initiative, while certain environmental advocacy groups have raised concerns regarding the adequacy of environmental protections included within the order.
Senator Sheldon Whitehouse of Rhode Island commended the executive order for addressing the energy demands imposed by unchecked data center expansion, which he previously cautioned against. He expressed skepticism about the likelihood of Trump’s administration enforcing the order, as discussions surrounding the energy imbalances continue to gain attention.
Nonetheless, the order overlooks addressing the significant water usage associated with AI data centers, which has raised concerns in regions where multiple facilities operate. As states grapple with the balance between economic development and water resource sustainability, calls for better data on water consumption in relation to zoning decisions remain a missed opportunity in this executive action.
