In the final days of his presidency, President Joe Biden signed an executive order allowing private AI companies to lease federal land for building AI data centers. This applies to sites owned by the Department of Defense and the Department of Energy.
However, these companies will need to finance the full cost of building, operating, and maintaining the data centers. The order mandates that enough clean energy must be used to match the power consumed by these data centers.
The Biden administration’s initiative aims to reinforce U.S. leadership in AI and prevent reliance on foreign nations for AI infrastructure. The executive order also facilitates quicker inspections and approvals for bids to ensure efficiency. It is not a grant program but rather a move to encourage private investment in AI infrastructure on government-owned land.
A key aspect of this order is the focus on renewable energy. Data centers in the U.S. currently use 4% of the nation’s power, and this is projected to rise to 9% by the end of the decade.
The rapid growth in data center demand is expected to double power usage in the next five years. By requiring clean energy sources for these new data centers, the Biden administration aims to address this growing energy demand sustainably.
The order was announced just a day after the administration revealed new AI chip export rules, restricting shipments to countries like China and Russia while imposing quotas on others. These measures are part of a broader strategy to ensure the U.S. maintains its competitive edge in the global AI race.
However, the executive order faces potential challenges as Donald Trump is expected to reverse many of Biden’s policies upon his return to office.
