✍️ Biden’s AI Order

Last week, just prior to his departure, President Biden signed an executive order designed to speed up the building of data centers and clean energy facilities to help the U.S. grow its AI capabilities quickly and at scale.

The plan? Fast-track the construction of AI data centers on federal land, power them with clean energy, and keep critical tech firmly on American soil. Here’s a closer look at what it entails—and why it matters.

What’s On The Agenda?

The executive order mandates the Department of Defense and Department of Energy to designate at least six federal sites for new AI data centers. These centers will:

• Be built and operated by private companies leasing the land.

• Be fully powered by clean energy, with developers footing the bill.

• Use a significant share of semiconductors made in the U.S., reinforcing the domestic chip supply chain.

To accelerate progress, the government promises to expedite permitting processes, ensuring swift construction and integration with the electric grid.

Why It’s a Big Deal

1. National Security Comes First
   With adversaries like China ramping up their AI capabilities, Biden’s administration is doubling down on keeping frontier AI systems secure and within U.S. borders. By ensuring data centers are built domestically, the order seeks to prevent hostile access to powerful AI technologies.

2. Strengthening Domestic Industry
   This initiative safeguards the U.S. AI sector from the fate of other industries that have moved offshore due to lower labor and environmental standards. By keeping AI development anchored at home, the U.S. can set global benchmarks for ethical AI practices.

3. Cleaner, Greener AI
   The order prioritizes renewable energy, emphasizing that innovation doesn’t have to come at the expense of environmental integrity. Developers will be required to provide clean energy to match the full capacity needs of their data centers.

How AI Export Rules Factor In

The executive order comes on the heels of new export restrictions aimed at controlling the flow of advanced AI chips. While countries like China face tightened regulations, trusted allies—including European nations, Japan, and South Korea—retain full access to U.S. AI technology.

The goal? To promote innovation among partners while preventing advanced AI systems from being weaponized by strategic competitors.

What’s Missing?

While the order is ambitious, it’s not perfect. For one, it skips over the massive water demands of data centers. Cooling those servers takes gallons upon gallons—something communities near these sites might not love.

Plus, a report released by the Department of Energy last month estimated that the electricity needed for data centers in the U.S. tripled over the past decade and is projected to double or triple again by 2028, when it could consume up to 12% of the nation’s electricity.

And while the push for clean energy is great, figuring out how to connect these centers to the grid quickly is going to be another major hurdle.

What’s Next?

Of course, it will be up to the incoming administration to maintain or rescind the EO and its various provisions; and, given Trump’s track-record, it’s likely changes are on the horizon.