Biden Signs Executive Order to Enhance AI Infrastructure in the US

On January 14, 2025, President Joe Biden signed a significant executive order aimed at expanding artificial intelligence (AI) infrastructure in the United States. This order is designed to facilitate the rapid and large-scale development of crucial technologies such as data centers and clean energy facilities necessary for advanced AI operations.

The executive order mandates federal agencies to speed up the construction of AI infrastructure on government properties. These agencies will provide suitable sites for the creation of AI data centers and new clean energy facilities. They will also assist in connecting this infrastructure to the electric grid and fast-tracking the necessary permits for construction.

Biden emphasized the transformative potential of AI, stating that it could greatly influence national security and enhance the lives of Americans. He noted the capability of AI to address significant challenges, from healthcare to environmental safety. However, he also stressed the importance of responsible development and maintaining high environmental standards.

As part of the new initiatives, the Departments of Defense and Energy are tasked with identifying at least three federal sites where private companies can establish AI data centers. These agencies are expected to manage competitive solicitations inviting private sector participation.

Under the guidelines established in the order, developers are responsible for funding the construction of their data centers and must ensure that sufficient clean energy is sourced to meet their operational needs. Although the USA will lease land for these projects, the materials generated on-site will remain under the ownership of the developing company.

Biden further outlined that these efforts must align with both environmental justice and local community interests, ensuring that costs do not fall on average consumers. The chosen developers will carry all expenses related to building and maintaining the AI infrastructure, ensuring that electricity prices do not escalate for residents.

The order also calls for public labor agreements during the construction of AI data centers situated on federal land. Notably, some of these facilities will be specifically designated for smaller and medium-sized AI enterprises.

Moreover, federal agencies will conduct research to assess the impact of AI data centers on electricity pricing. The Department of Energy will lend technical support to state public utility commissions to help create tariff structures that facilitate the integration of large clean energy customers.

Additionally, the Department of the Interior is set to identify suitable lands it manages that could support clean energy initiatives and accommodate data centers on government properties. Tarun Chhabra, a deputy assistant to the president and a national security technology coordinator, highlighted the growing computing demands for training AI models: by around 2028, leading AI developers may require as much as five gigawatts of power for their data centers.

Chhabra underscored the importance of establishing a comprehensive network of data centers across the country to effectively deploy AI systems at scale. From a national security perspective, having a robust domestic infrastructure for AI is crucial to prevent adversaries from gaining access to vital technologies that could undermine U.S. military capabilities.

The executive order follows the Biden administration’s recent proposals for new restrictions on the export of AI chips. This move reflects a careful balancing act between national security imperatives and the economic needs of producers and international partners.

Biden, AI, Infrastructure