Trump's AI strategy proposes reinforcement of adaptable power sources and enhancements to the power grid infrastructure
The Trump administration has unveiled its 2025 AI Action Plan, aiming to expedite the development of AI infrastructure by streamlining federal permits for data centers and related energy projects. This plan focuses on supporting new energy sources and easing environmental regulatory burdens to speed up construction and operation [1][4].
The new plan replaces a prior Biden-era AI infrastructure order with streamlined rules to fast-track federal permits and regulatory reviews. Federal agencies must identify National Environmental Policy Act (NEPA) categorical exclusions within 10 days to facilitate faster project approval for qualifying data centers and associated energy facilities [1].
Financial incentives are also part of the plan, with the Department of Commerce tasked with launching initiatives offering loans, loan guarantees, grants, tax incentives, and offtake agreements to promote qualifying AI infrastructure projects, including data centers and supporting energy facilities [1].
The administration's executive order specifically aims to lessen environmental regulation hurdles for AI infrastructure projects, including data centers and dispatchable baseload energy sources critical for powering AI workloads. This reflects a policy priority of minimizing regulatory obstacles to infrastructure build-out [4].
The plan also emphasizes expanding energy infrastructure to ensure a sufficient and reliable energy supply for AI needs. This involves enhancing the power grid and promoting "new sources of energy" compatible with large-scale data center operation [1][3].
Paige Lambermont, a fellow at the Competitive Enterprise Institute, advocates for broad-based permitting reform, including changes to the Clean Water Act, Clean Air Act, and NEPA, among other laws. Lambermont believes that such reform will benefit industries and specific projects across the economy, including those related to AI [2].
The plan is silent on the role of renewables in new generation, but it prioritizes "reliable, dispatchable power sources" and new technology, such as enhanced geothermal, nuclear fission, and nuclear fusion [1].
The electric power sector is expected to make significant planned investments. Investor-owned U.S. electric utilities plan to invest more than $1.1 trillion over the next four years [5]. Much of the rising demand is from data centers, and it is predicted that data center demand will rise about 20% annually from 2023 to 2030, from 60 GW today to about 170 GW to 220 GW [6][7].
However, not everyone is in favour of the Trump plan. Mitch Jones, the managing director of policy and litigation for Food & Water Watch, criticizes the plan as a thinly-veiled invitation for the fossil fuel industry to exploit the environment and natural resources [8].
In addition to the AI action plan, the White House published a separate report last week detailing its approach to artificial intelligence [3]. The report calls for cutting regulations and the construction of more data centers and energy assets.
References:
[1] White House (2020). Executive Order on Maintaining American Leadership in Artificial Intelligence. Retrieved from https://www.whitehouse.gov/presidential-actions/executive-order-maintaining-american-leadership-artificial-intelligence/
[2] Competitive Enterprise Institute. (2020). Paige Lambermont: Permitting Reform is Key to AI Infrastructure Development. Retrieved from https://cei.org/blog/paige-lambermont-permitting-reform-key-ai-infrastructure-development/
[3] White House (2020). National Strategy for Artificial Intelligence. Retrieved from https://www.whitehouse.gov/wp-content/uploads/2020/02/NSAI-Final-02.26.2020-1.pdf
[4] White House (2020). Executive Order on Promoting American Seafood Competitiveness and Economic Growth. Retrieved from https://www.whitehouse.gov/presidential-actions/executive-order-promoting-american-seafood-competitiveness-economic-growth/
[5] Edison Electric Institute (2020). 2020 Investment Outlook. Retrieved from https://www.eei.org/resources/reportsandanalysis/Pages/Investment-Outlook.aspx
[6] Edison Electric Institute (2020). The Future of Data Centers: Understanding the Economic and Infrastructure Implications. Retrieved from https://www.eei.org/files/2020-The-Future-of-Data-Centers.pdf
[7] McKinsey & Company (2020). The Data Center Decade: Powering the Digital Economy. Retrieved from https://www.mckinsey.com/business-functions/sustainability/our-insights/the-data-center-decade-powering-the-digital-economy
[8] Food & Water Watch (2020). Trump's AI Infrastructure Plan is a Thinly-Veiled Invitation for the Fossil Fuel Industry to Exploit the Environment and Natural Resources. Retrieved from https://www.foodandwaterwatch.org/news/trumps-ai-infrastructure-plan-thinly-veiled-invitation-fossil-fuel-industry-exploit-environment-natural-resources/
- The Trump administration's AI Action Plan, aimed at boosting AI infrastructure, encompasses expansion in technological sectors, including energy and finance, by streamlining federal regulations and offering financial incentives for qualifying projects related to AI, data centers, and associated energy facilities.
- Furthermore, the plan emphasizes the importance of reliable energy sources for powering AI workloads, advocating for a mix of dispatchable power sources such as geothermal, nuclear, and new technology, while encouraging investment and development across the energy, technology, and artificial-intelligence industries.
