Biden Signs Executive Order to Expand AI Infrastructure in the U.S.

On January 14, 2025, President Joe Biden signed a significant executive order focused on the advancement of artificial intelligence in the United States. This order aims to facilitate the rapid development of infrastructure essential for high-level AI operations, including extensive data centers and new clean energy facilities.

Accelerating Infrastructure Development

The executive order specifically instructs federal agencies to expedite the large-scale development of AI infrastructure on government properties. Additionally, it sets forth requirements and safety measures for developers working on these sites. Various agencies will take steps to make suitable federal sites available for AI data centers and clean power projects. Moreover, these agencies will assist in connecting the infrastructure to the electric grid while also hastening the permitting processes.

Implications and Goals

In his statement regarding the executive order, President Biden explained that artificial intelligence has the potential to significantly impact national security and improve the quality of life for Americans. He noted applications ranging from healthcare advancements to environmental safety, particularly in climate change mitigation.

"We cannot take our lead for granted," stated Biden. "We will not let America be out-built in technology that will shape the future, nor sacrifice our environmental standards in doing so."

Federal Site Development

The Departments of Defense and Energy have been tasked with identifying at least three federal locations suitable for AI data center construction. They will conduct competitive solicitations to invite private entities to invest in building these facilities at government sites. Developers will finance the construction and must ensure a sufficient clean power supply to meet the energy needs of their data centers.

Local Community Respect

President Biden emphasized that these initiatives aim to ensure that the shift towards clean energy and AI development is carried out in a way that respects local communities and does not impose higher electricity costs on everyday Americans. The federal government will lease land to companies, but these companies will own the infrastructures they build.

Labor and Competitive Opportunities

Additionally, the order mandates that all construction on federal sites must adhere to public labor agreements. Some sites will be designated for small to medium-sized AI companies, allowing diverse opportunities for various developers.

Electricity Pricing Study

Agencies are also tasked with conducting a study on how the establishment of AI data centers impacts electricity pricing. Meanwhile, the Energy Department will provide technical guidance to state utility commissions regarding tariff designs that can facilitate connections to new clean energy customers.

Land Management for Clean Energy

The Interior Department will identify federal lands that can be utilized for clean energy initiatives to assist AI data center development effectively.

Future Projections

According to Tarun Chhabra, deputy assistant to the president, the demand for computing power and electricity for training advanced AI models is expected to grow rapidly. By 2028, leading AI developers might require up to five gigawatts of capacity for their AI model training.

National Security Considerations

Chhabra pointed out that building these infrastructures domestically is crucial for national security, stating that it allows the U.S. to prevent adversaries from gaining access to powerful AI systems that could harm military and national interests. This strategic investment also reduces the U.S.'s dependence on foreign nations for AI technologies.

Trade Restrictions Context

This executive order follows the Biden administration's recent proposal to impose new restrictions on the export of AI chips, balancing national security with economic considerations. This proposal has stirred concerns among chip industry leaders and European Union officials due to its potential impact on trade with 120 countries.

Biden, AI, Infrastructure