President Joe Biden signed an executive order aimed at advancing artificial intelligence (AI) infrastructure in the United States. The order focuses on facilitating the development of large-scale AI operations, including data centers and clean power facilities. It directs federal agencies to expedite the construction of AI infrastructure at government sites while imposing requirements on developers.
The tech industry's increasing reliance on data centers for AI technology necessitates more powerful computation capabilities. A recent Department of Energy report highlighted the escalating electricity demands of data centers, projecting a significant rise by 2028.
Biden emphasized the potential of AI to enhance national security and improve lives responsibly. The order mandates the identification of sites for private sector-built AI data centers by the Departments of Defense and Energy. Developers must cover construction costs and ensure clean power generation matches data center needs.
The order prioritizes reducing energy bottlenecks and promoting renewable energy sources. It aims to accelerate the clean energy transition without burdening consumers. Public labor agreements will govern AI data center construction on federal sites, with some reserved for small and medium-sized companies.
The Interior Department will identify lands suitable for clean energy development to support government data centers. The order also addresses the need for a broader network of data centers across the country to deploy AI systems at scale.
Investing in domestic AI infrastructure safeguards national security and prevents reliance on foreign sources. The order complements proposed restrictions on AI chip exports to balance security concerns and economic interests.
However, concerns remain about the water consumption of AI data centers. States hosting multiple data centers are grappling with balancing economic benefits against water resource impacts. The order could have included measures to assess water usage but did not.
