Illustration: Annelise Capossela/Axios.
President Biden on Tuesday issued an executive order to accelerate the construction of large-scale data centers and clean energy facilities on federal lands.
Why it matters: Tech giants are scrambling to build data centers to support advancements in AI, quantum and cloud computing and keep a global competitive edge.
What's inside: The EO says the Defense and Energy Departments will be able to lease federal land for data centers, and DOE will facilitate connecting AI infrastructure to the electric grid.
- The agencies will identify at least three sites "within the next couple of months" to make available for data centers, a senior administration official said in a call with reporters.
- National Environmental Policy Act permitting processes will be expedited for infrastructure that doesn't significantly impact the environment.
What we're watching: A meaningful chunk of the executive order is contingent on future studies and agency actions that won't happen until President-elect Trump takes office.
- Trump is also keen on meeting industry energy demands for AI, but may not care to prioritize clean energy once in office.
DOD is tasked with analyzing the environmental impact of AI data centers and that analysis will improve the speed and accuracy of future reviews in specific sites, a senior administration official said.
- The Interior Department will be tasked with streamlining the permitting process for geothermal projects in particular, the official said.
- The Biden administration is also promising to keep electric bills low for consumers by directing agencies "to be vigilant" about costs.
Developers are subject to a host of requirements to build on federal land.
- They'll need to fully pay for all of the construction and infrastructure.
- Businesses would also be required to procure new "clean energy sources" to match their energy needs and to adhere to high labor standards.
- There's another catch: They'll need to buy an "appropriate" number of U.S.-manufactured chips. The quantity could be worked out in leasing agreements between the government and companies, a senior administration official said.
What they're saying: This is "the flip side" to global export controls released earlier this week, a senior administration official said.
- "As we take steps to ensure the responsible diffusion of AI technology abroad, it's really vital that we ensure that the AI industry can build out the infrastructure for training and using powerful AI models here in the United States," the official told reporters.
