On Tuesday, U.S. President Joe Biden signed an executive order aimed at ensuring that the United States maintains its leadership in the field of artificial intelligence (AI) without being hindered by inadequate energy infrastructure. The order requires the Department of Defense and the Department of Energy to identify and lease federal land to the private sector for the development of large-scale data centers and the necessary clean energy infrastructure to meet the "full electricity demand" of these facilities.
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President Biden stated in a White House announcement: "The growing electricity demand from large AI operations presents new opportunities to enhance U.S. leadership in clean energy technology, which will drive economic growth." The immense power required for large-scale AI computing has compelled many cloud computing and hyperscale operators to actively adopt emerging energy technologies, invest in building new gas power plants, and even share facilities with existing nuclear reactors.
For example, Meta recently issued a request for proposals to secure up to four gigawatts of nuclear power to support its long-term AI development plans. Maintaining AI leadership has become a priority for the Biden administration, which has repeatedly utilized executive powers and export controls to promote the growth of U.S. companies while restricting the progress of competitors like China and Russia.
Vice President Kamala Harris noted in a statement: "By mobilizing the full force of the federal government to accelerate and expand AI operations in the U.S., we are ensuring global leadership in the AI field, which will have profound impacts on our economy, society, and national security."
The order mentions various existing and emerging energy technologies, such as nuclear energy, geothermal energy, solar energy, wind energy, and hydropower, all capable of meeting the massive energy demands of AI. The White House hopes to avoid pushing consumer electricity prices up by matching energy production with data center needs.
However, given the Biden administration's desire to rapidly advance the development of these facilities, some technologies, such as small modular reactors (SMRs), may not be practical enough. According to the order, site selection and partner evaluation plans are expected to be completed by 2025, with facilities projected to be operational by the end of 2027. Although several cloud service providers have announced plans to adopt SMRs in the long term, most deployments are expected to occur in the early 2030s, which may extend beyond the scope of this order.
The executive order requires government agencies to lease federal land to private partners, streamline the permitting process, and facilitate grid planning. Participants will still need to bear the costs of construction and equipment and procure clean energy. Additionally, participants must purchase an appropriate percentage of domestically manufactured semiconductors, which could pose challenges for data center operators, as currently only a small number of processors used for AI systems are manufactured in the U.S.
Key Points:
🌍 President Biden signs an executive order aimed at promoting energy infrastructure development in the AI sector.
⚡ Plans to develop large-scale data centers on federal land while ensuring clean energy supply.
🛠️ Participants are required to bear the costs of facility construction and purchase domestically manufactured semiconductors, facing challenges.