Joe Biden signs an executive order to expedite the construction of artificial intelligence data centers.
The development of new artificial intelligence tools is becoming an increasingly energy-consuming task.
President Biden signed an executive order today aimed at accelerating the establishment of artificial intelligence (AI) data centers in the United States. This measure directs the Department of Defense (DOD) and the Department of Energy (DOE) to lease federal land to private companies building large-scale AI data centers and clean energy facilities. Additionally, it calls on federal agencies to “prioritize” and expedite the permitting process for AI infrastructure. The decree may allow for “categorical exclusions” to speed up environmental reviews under the National Environmental Policy Act.
The creation of AI tools increasingly consumes energy, and while the Biden administration appears to believe that this path is worth the risk of further diverting the country's climate goals and increasing pressure on already strained power grids, President Biden stated, “We will not let America fall behind in building the technology that will define the future.”
Prior to this announcement, following reports that the White House might push for measures to accelerate the development of data centers, environmental advocacy groups and Democratic lawmakers urged the administration not to exempt AI from standard permitting procedures and environmental regulations. A group of senators sent a letter to the Biden administration on December 17 saying, “We urge you to reconsider any executive action that may result in increased pollution and costs for consumers.” The letter emphasized that the United States has the capacity to advance in the AI race while intensifying efforts to decarbonize.
According to estimates published by the Lawrence Berkeley National Laboratory (LBNL), electricity demand from data centers has tripled in the past decade and could double or triple again by 2028. In 2023, these centers accounted for approximately 4.4 percent of electricity consumption in the U.S., a figure that could reach up to 12 percent in five years. This increase in demand is driven by the immense computing power needed to train AI models. Utilities are already extending the lifespan of polluting coal and gas infrastructure to try to meet this growing electricity demand, which has also led to rising service costs for consumers.
Developers building new AI data centers on federal land will be required to “cover all construction and operational costs of the AI infrastructure so that this development does not increase electricity prices for consumers,” according to the White House. This includes the construction of the data center, as well as energy facilities and transmission lines. Companies will be responsible for sourcing electricity from new “clean” energy sources and will need to assess the security implications of the AI models developed at these federal sites, in addition to procuring “a sufficient share” of semiconductors made in the United States.
Johanna Neumann, senior director of the Environment America Research & Policy Center, emphasized that in the competition to dominate AI, the urgent need to stop pollution that warms the planet and affects public health must not be overlooked. She advocates for the efficiency of new computing centers and their operation on renewable electricity. “Without those measures, the insatiable energy thirst of AI could undermine America’s efforts to move away from harmful fossil fuels,” she added.
The government already leases federal lands for energy production, including fossil fuel exploration and renewable energy projects. With the new executive order, by February 28, the Secretary of Defense and the Secretary of Energy are expected to identify at least three sites each to host new AI data centers on the lands under their management.
