By Redaccion
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President Joe Biden signed an expansive executive order on Tuesday, aiming to accelerate the development of artificial intelligence (AI) infrastructure in the United States.
The order focuses on enabling the construction of large-scale data centers and clean energy facilities to support the growing demands of advanced AI technologies.
The directive instructs federal agencies to facilitate the establishment of AI infrastructure on government sites while implementing safeguards and requirements for private developers utilizing these locations. Agencies are also tasked with expediting permitting processes and ensuring the integration of new facilities into the electric grid.
Addressing AI’s Growing Energy Needs
The tech industry has relied on data centers for years to power services like email, social media, and financial transactions. However, the next generation of AI tools—such as chatbots and generative AI platforms—demands significantly higher computational power.
A Department of Energy report released last month highlights the rapid increase in energy consumption by U.S. data centers. Electricity usage tripled over the past decade and is projected to double or triple again by 2028, potentially consuming up to 12% of the nation’s electricity.
“AI holds profound implications for national security and has the potential to improve Americans’ lives,” Biden said in a statement. “From advancing medical research to mitigating climate change, AI can drive meaningful progress—but we cannot take our leadership in this field for granted.”
Biden emphasized that the U.S. must remain at the forefront of AI technology without compromising environmental standards. “We will not let America be out-built when it comes to the technology that will define the future,” he said.
Federal Sites for AI Development
Under the order, the Departments of Defense and Energy will identify at least three government-owned sites suitable for private sector development of AI data centers. These agencies will solicit bids from companies interested in constructing and operating the facilities.
Private developers will be required to fund the construction and ensure sufficient clean energy generation to meet the centers’ full power needs. Though the U.S. government will lease the land, private companies will retain ownership of the facilities and their contents.
Senior administration officials noted that the new policies aim to address bottlenecks in connecting energy-intensive data centers to renewable energy sources, such as wind and solar power.
Sasha Luccioni, climate lead at AI company Hugging Face, described the initiative as essential. “Without prioritizing infrastructure, we risk blackouts and disruptions that could affect businesses and communities,” she said.
Balancing AI Growth with Community Impact
The executive order aims to fast-track the clean energy transition while minimizing costs for consumers. Developers will shoulder all expenses related to building and operating AI infrastructure, ensuring no additional financial burden falls on the public.
To further support communities, construction on federal sites will require public labor agreements, and some sites will be reserved for small and medium-sized AI companies.
Federal agencies will also conduct a study on the broader impact of AI data centers on electricity prices, while the Department of Energy will assist state utilities in designing tariffs to support clean energy integration for large-scale AI projects.
A National Security Imperative
Tarun Chhabra, Deputy Assistant to the President and Coordinator for Technology and National Security, underscored the importance of the initiative.
“By 2028, leading AI developers may require data centers with capacities of up to five gigawatts to train advanced AI models,” Chhabra said. He added that a network of data centers across the U.S. is crucial to maintaining national security and reducing reliance on foreign technology.
Building this infrastructure domestically also safeguards AI systems from potential adversaries and supports the U.S. military, Chhabra noted.
Challenges and Missing Elements
The executive order follows the Biden administration’s recent proposal to restrict exports of AI chips, raising concerns among industry leaders and international partners about potential economic repercussions.
Despite its ambitions, the order does not address water consumption by data centers—a growing concern in states with high numbers of such facilities. Data centers often require large amounts of water for cooling, creating tension in regions balancing economic development with water resource management.
J. Alan Roberson, Executive Director of the Association of State Drinking Water Administrators, called for more transparency. “Federal agencies could have included provisions to collect data on water usage, aiding local officials in making informed zoning decisions,” he said.
Building the Future of AI
Biden’s executive order sets the stage for the U.S. to remain a global leader in AI development while prioritizing sustainability and community impact. The administration’s focus on clean energy, advanced technology, and national security underscores the transformative potential of AI in shaping the nation’s future.
