Biden Administration Considers Executive Order to Expedite AI Data Center Construction on Federal Lands

The Biden administration is drafting a plan to expedite the construction of massive data centers and power plants on federal lands, aiming to bolster the United States' position in the global race for artificial intelligence dominance, as reported by The Washington Post. This initiative comes in response to concerns that the US is falling behind competitors like China in AI development, due in part to energy and supply chain constraints.

The White House is working to finalize the plan as an executive order for President Biden to sign before his term ends in January, according to industry and government officials involved in the effort. The plan would ease environmental restrictions on specified parcels of federal land, focusing on next-generation data centers with a minimum electricity consumption of one gigawatt—roughly the equivalent of a city of one million residents. The proposal also contemplates the construction of dedicated natural gas power plants at these sites, with the potential for a transition to wind or solar power in the future.

"This administration is continuing to work with all stakeholders to ensure the U.S. leads the world in AI, and AI data centers are powered by clean energy without raising electricity costs for consumers," said White House spokesperson Robyn Patterson in an email to The Washington Post.

The move reflects the administration's concern about energy shortages and supply chain bottlenecks that tech executives say are impeding the AI industry's growth. The plan aims to enable companies like OpenAI, Microsoft, and Google to bypass regional power grids—which are struggling to keep pace with the soaring demand for electricity from expanding data centers—by constructing dedicated power plants at the same locations.

The Data Center Coalition, a trade group representing tech companies that could benefit from the executive action, declined to comment. Officials cautioned that the administration has yet to release a draft of the order, and completion before Biden's term ends is uncertain.

National security officials are warning that the US risks falling behind competitors like China, which are more readily building the extensive new electricity infrastructure necessary to support data center growth. This concern is echoed in a recent congressional report on AI development, which also highlights the potential economic consequences of letting other countries lead in this sector.

A coalition of environmental groups is actively lobbying against using federal land for data center development, arguing that such a move would undermine the Biden administration's climate achievements. Five Democratic senators have also written to the White House urging Biden to reconsider the executive order, citing potential environmental consequences.

The plan to fast-track data center development builds on earlier administration efforts to support computing infrastructure, including the CHIPS Act of 2022, which aims to stimulate semiconductor manufacturing in the US. The Biden administration's focus on this area has shifted the lobbying efforts of technology companies to the incoming Trump administration.

The dramatic increase in power consumption by US data centers—projected to more than quadruple by 2030—underscores the urgency of addressing the energy needs of this rapidly growing sector. "We are in a global race to lead in this transformative new technology," said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University. "The U.S. has a big headstart. But maintaining that lead requires massive investment in data centers, which consume an enormous amount of power. We have to meet the need for new power generation in the U.S., and it has to happen quickly."

The White House had initially considered using the Defense Production Act in the executive order, but this option was reportedly shelved at a recent interagency meeting. Tech companies have been actively lobbying the administration for more federal support, including at a September meeting with President Biden, where OpenAI pitched its vision for energy-intensive development clusters fueled by nuclear and other power sources.

Some advocates express concern that the executive order, if implemented by the incoming Trump administration, could prioritize fossil fuel-based power generation over cleaner energy sources. "I would be concerned about any White House this late in its term taking action that is going to be implemented by a different administration of a different party," said Josh Freed, senior vice president for climate and energy at Third Way. "If an executive order leaves any room for interpretation, it is going to be interpreted differently than intended."