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White House Issues Executive Order on Advancing US Leadership in AI Infrastructure

By Peter Stockburger and Justin Mirabal

On January 14, 2025, President Joe Biden signed an Executive Order titled Advancing United States Leadership in Artificial Intelligence Infrastructure (“AI Executive Order”). The AI Executive Order instructs the Departments of Defense (“DOD”) and Energy (“DOE”), in coordination with other federal agencies, to lease federal sites to private-sector entities for constructing large-scale artificial intelligence (“AI”) data centers and associated clean energy facilities. This directive aims to expedite the development of large-scale AI infrastructure within the United States, emphasizing sustainable energy practices and national security considerations.

The key provisions of the AI Executive Order and the implications for stakeholders in the energy and technology sectors include:

  1. Leasing Federal Land for AI Data Centers: The DOD and DOE are directed to select at least three federal sites each by February 28, 2025, for potential lease to private companies to construct large-scale AI data centers and clean energy facilities by the end of 2027. The DOD and DOE will select sites based on accessibility to high-capacity transmission infrastructure and the ability to minimize adverse effects on communities, the natural environment, and commercial resources.
  2. Private Sector Investment and Renewable Energy Alignment: Private companies will finance the construction and operation of AI infrastructure, ensuring no additional costs are imposed on taxpayers. Developers are required to match AI facilities’ energy consumption with clean energy sources, including geothermal, solar, wind, and nuclear energy.
  3. Streamlined Permitting Processes: Federal agencies are directed to expedite the permitting process for AI infrastructure projects, including facilitating interconnections to the electric grid. This may involve creating “categorical exclusions” under the National Environmental Policy Act to accelerate development timelines.
  4. Use of American-Made Semiconductors: Companies building on federal land are mandated to utilize an appropriate share of American-made semiconductors, with specific procurement requirements determined on a case-by-case basis. This requirement aims to bolster domestic manufacturing and increase investment in US semiconductor chip production.

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