Data Centers, AI and Energy Generation: Something Biden and Trump can agree on
Last Friday, on his last day in office, President Biden issued an executive order to boost the development of data centers and energy facilities for artificial intelligence technology. Executive Order 14141 instructs the Secretaries of Defense, Energy and the Interior that they can lease federal land to private companies to build data centers and energy transmission and generation facilities. In a statement that accompanied the Order, President Biden stressed the importance of connecting AI facilities with clean energy resources. He stated that the U.S. shouldn’t “sacrifice” critical environmental standards in order to remain a leader in AI technology. The Order prioritizes the deployment and use of solar, wind and geothermal energy, as well as other low-carbon technologies, such as energy storage systems and carbon capture systems, to support AI data centers. President Trump’s approach towards regulation will likely be very different than President Biden’s. This includes in terms of clean energy. What could the change in administration mean to the future development of AI in the U.S., data centers, and energy resources?
Reduced emphasis on renewable energy.
Former North Dakota governor Doug Burgum has stressed the need for the U.S. in the next few years to bring more “baseload energy resources” online to meet AI’s increasing electricity demand. Burgum said in comments made last week that renewable energy sources such as solar and wind are not reliable and do not generate electricity when the sun goes down or the wind blows. The Order encourages the use and development of renewable energy technologies. However, it does allow the use of nonrenewable sources of energy in the creation of new AI data centres. Based on Burgum’s comments (and the remarks of many others associated with the new administration, including President Trump himself), the Trump administration is likely to be more supportive of using non-renewable energy sources to power AI data centers on federal lands.
- Continued efforts to streamline permitting. One aspect of the Order that will likely find support in the Trump White House is the intention to reduce permitting backlogs for AI and energy projects on federal lands. The Order directs federal agencies to prioritize a speedy review and approval for AI and clean-energy projects on federal land. It also directs agency heads identify and propose new “categorical exemptions” from federal environmental review requirements. President Trump has stated that he intends to reduce the permitting requirements and delays of major development projects including energy projects. Following through on that promise would be a major boon for the development of AI facilities and all kinds of energy projects, including clean energy projects.
- Strong support for AI. One thing that likely won’t change as the Trump administration kicks into gear: the White House wants the U.S. to be the global leader in AI technology and infrastructure. The Order states that building AI infrastructure within the U.S. will help the U.S. stay ahead of foreign competitors and competitors. In his first term, President Trump felt the same way. He launched the “American AI Initiative” and stated in a statement that “developing America’s ability to leverage AI was critical to increasing prosperity, enhancing national and economic security, as well as protecting our values.” Trump 2.0 will feature a “AI and Crypto Czar,” indicating ongoing support for AI as well as a need for increased capacity for data centers to power the ever growing and President Trump endorsed cryptocurrency industry. The U.S. government will continue to have a strong interest in developing AI technology domestically. It is clear, however, that the era of AI in America has only just begun.
