On Jan. 14, 2025, President Biden issued an executive order on advancing the United States’ position as a leader in the creation of artificial intelligence (AI) infrastructure.

AI is a transformative technology with critical implications for national security and economic competitiveness. Recent advancements highlight AI’s growing role in industries and areas including logistics, military capabilities, intelligence analysis, and cybersecurity. Developing AI domestically could be essential in preventing adversaries from exploiting powerful systems, maintaining national security, and avoiding reliance on foreign infrastructure.

The executive order posits that to secure U.S. leadership in AI development, significant private sector investments are needed to build advanced computing clusters, expand energy infrastructure, and establish secure supply chains for critical components. AI’s increasing computational and energy demands necessitate innovative solutions, including advancements in clean energy technologies such as geothermal, solar, wind, and nuclear power.

The executive order notes:

National Security and Leadership

• AI infrastructure development should enhance U.S. national security and leadership in AI, including collaboration between the federal government and the private sector; ensuring safeguards for cybersecurity, supply chains, and physical security; and managing risks from future frontier AI capabilities.
• The Secretary of State, in coordination with key federal officials and agencies, will create a plan to engage allies and partners in accelerating the global development of trusted AI infrastructure. The plan will focus on advancing collaboration on building trusted AI infrastructure worldwide.

Economic Competitiveness

• AI infrastructure should also strengthen U.S. economic competitiveness by fostering a fair, open, and innovative technology ecosystem by supporting small developers, securing reliable supply chains, and ensuring that AI benefits all Americans.

Clean Energy Leadership

• The U.S. aims to lead in operating AI data centers powered by clean energy to help ensure that new data center electricity demands do not take clean power away from other end users or increase grid emissions. This involves modernizing energy infrastructure, streamlining permitting processes, and advancing clean energy technologies, ensuring AI infrastructure development aligns with new clean electricity generation.
• The Department of Energy, in coordination with other agencies, will expand research and development efforts to improve AI data center efficiency, focusing on building systems, energy use, cooling infrastructure, software, and wastewater heat reuse. A report will be submitted to the president with recommendations for advancing industry-wide efficiency, including innovations like server consolidation, hardware optimization, and power management.
• The Secretary of Energy will provide technical assistance to state public utility commissions on rate structures, such as clean transition tariffs, to enable AI infrastructure to use clean energy without raising electricity or water costs unnecessarily.

Cost and Community Considerations

• Because building AI in the U.S. requires enormous private-sector investments, the AI infrastructure must be developed without increasing energy costs for consumers and businesses. Companies participating in AI development, clean energy technology, and grid and semiconductor development can work with federal agencies to strategically further these initiatives that align with broader ethical and operational standards.
• The Secretaries of Defense and Energy will each identify at least three federally managed sites suitable for leasing to non-federal entities for the construction and operation of frontier AI data centers and clean energy facilities. These sites should aim to be fully permitted for construction by the end of 2025 and operational by the end of 2027.
• Priority will be given to locations that 1) have appropriate terrain, land gradients, and soil conditions for AI data centers; 2) minimize adverse impacts on local communities, natural or cultural resources, and protected species; and 3) are near communities seeking to host AI infrastructure, supporting local employment opportunities in design, construction, and operations.

Worker and Community Benefits

• AI infrastructure projects should uphold high labor standards, involve close collaboration with affected communities, and prioritize safety and equity, ensuring the broader population benefits from technological innovation.
• The Director of the Office of Management and Budget, in consultation with the Council on Environmental Quality, will evaluate best practices for public participation in siting and energy-related infrastructure decisions for AI data centers. Recommendations will be made to the Secretaries of Defense and Energy, who will incorporate these into their decision-making processes to ensure effective governmental engagement and meaningful community input on health, safety, and environmental impacts.
• Relevant agencies will prioritize measures to keep electricity costs low for households, consumers, and businesses when implementing AI infrastructure on Federal sites.

Takeaways

The U.S. is committed to enabling the development and operation of AI infrastructure, including data centers, guided by five key principles: 1) national security and leadership; 2) economic competitiveness; 3) leadership in clean energy; 4) cost and community consideration; and 5) workforce and community benefits.

The Biden administration’s latest initiative aims to foster a competitive technology ecosystem, enable small and large companies to thrive, keep electricity costs low for consumers, and ensure that AI infrastructure development benefits workers and their local communities.