U.S. Department of Energy Pursues the Construction of Data Centers on Federal Lands – Gravel2Gavel Construction & Real Estate Law blog — April 9, 2025
On April 7, the Office of Policy for U.S. Department of Energy (DOE) published a Request for Information (RFI) seeking input from industry professionals, grid operators, local communities, Tribal governments, and other stakeholders regarding the development and operation of AI infrastructure–including data centers–on DOE-owned or managed lands. This initiative is in line with the January 20, 2025 Executive Order Removing Barriers for American Leadership in Artificial Intelligence which highlights AI as a priority in national and economic security. DOE hopes the RFI will provide information that will allow it to better understand site interests, strategic data center designs, potential power requirements, financial and contract considerations related leasing DOE-owned lands, as well as the potential benefits and obstacles associated with hosting AI Infrastructure on DOE land.
Key takeaways
DOE identified 16 agency owned or managed locations across the country, including sites in major research facilities like Argonne Brookhaven Los Alamos Oak Ridge and Idaho National Laboratory, as potential sites for AI infrastructure. These sites have unique advantages, such as proximity to advanced energy resources, scalability, and access to water and minerals. The DOE’s vision is that these sites will be designated and entitled for the construction of AI Infrastructure by the end 2025, with operational commencement targeted for the end 2027. The government anticipates authorizing land use rights through long-term ground lease or easement structures, depending on the desired length and terms of the agreements.
The RFI specifies that broad input is sought across 10 categories to assess the feasibility and value of locating potential AI infrastructure on DOE lands. The agency is seeking feedback on the characteristics of preferred sites, the design and technical considerations that go into data centers, including cooling and water requirements, and opportunities to co-locate innovative energy technologies, such as nuclear, geothermal, and energy storage. Additionally, DOE requests information on anticipated environmental impacts, permitting needs, potential development challenges–such as supply chain or cybersecurity obstacles–and strategies for engaging Tribes, local governments and other stakeholders.
Finally, the agency is interested in hearing what additional information would be required from the DOE for a respondent to thoroughly respond to a potential future solicitation. This comprehensive inquiry is designed to inform future solicitations and shape a national strategy for scaling secure, sustainable AI infrastructure.
DOE’s long-term plan could thus help create opportunities for advanced energy developers to develop co-located energy facilities to power data centers. The publication by the agency signals a major federal effort to accelerate AI infrastructure. It also offers a rare opportunity for companies to influence future solicitations and shape how and where this happens. Companies can gain early access to prime opportunities for development by utilizing DOE lands, which offer large, secure, and strategically located sites. This pursuit opens the door for long-term federal land use agreements, potential public-private partnerships, and collaboratives with National Laboratories.
Responses to the RFI are requested by May 7, 2025. Information that could compromise the competitive position or any participant will not be released publicly. Responses containing sensitive information are encouraged to be properly marked as confidential, proprietary or privileged by the DOE.
Pillsbury is available to assist stakeholders in navigating the RFI process and preparing for future DOE solicitations. Our team, led by authorities in energy and infrastructure law, is ready to advise clients on all aspects of engagement with DOE, from drafting RFI submissions and evaluating federal land opportunities to generating competitive responses to future Requests for Proposals (RFPs)–a process that is both an art and a science.
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