President Joe Biden is using his final days in office to shape the buildout of AI infrastructure in the U.S. An executive order issued on Tuesday opens a path for private sector AI companies to lease federal sites owned by the Department of Defense and Department of Energy for new AI data centers.
What the order allows
The executive order gives AI companies access to selected federal sites, but it does not hand them public money to build. Companies that use these sites will be responsible for the full cost of building, operating, and maintaining the data centers.
That distinction matters. The policy is structured around leases and private investment, not a grant program. The federal government would make certain sites available, while companies would still carry the financial burden of turning those sites into working AI infrastructure.
The White House described the move as part of an effort to strengthen and secure the U.S. position in AI. It also said the order is meant to reduce the risk that domestic AI companies have to depend on other countries for access to AI tools and infrastructure.
Clean energy is part of the deal
The order ties the new federal-site leasing path to a specific energy requirement. AI companies building data centers on these sites must bring online enough clean energy resources to match the electricity needed to power them.
That requirement points to one of the central tensions in AI infrastructure. Data centers are essential to modern AI development, but they also require large amounts of electricity. According to the Electric Power Research Institute, data centers currently consume 4% of all U.S. power, and that figure is expected to grow to 9% by the end of the decade.
A report by JLL also expects overall data center power demand to double over the next five years. Against that backdrop, the executive order does not simply make federal sites available. It attaches the buildout of AI data centers to the need for matching clean energy resources.
Why federal sites matter
The order focuses on sites owned by the Department of Defense and Department of Energy. Those departments would be involved in making federal sites available for AI data center projects and reviewing bids from private companies.
According to the White House, the departments are expected to receive the resources needed to inspect and approve bids quickly and efficiently. The source article does not specify which sites could be leased, how many projects could be approved, or which AI companies may apply.
What is clear is the policy goal: give U.S. AI companies more domestic infrastructure options while keeping the cost of construction and operation on the private sector. For companies, the opportunity is access to federal sites. The obligation is paying for the facilities and matching their electricity needs with clean energy resources.
Part of a broader AI policy push
The executive order arrived one day after the Biden administration announced a new set of rules and guidelines on AI chip exports. Those rules placed further restrictions on a number of countries, including China and Russia, and added a 50,000 chip quota for the majority of the rest of the world.
Taken together, the two actions show a focus on both sides of AI infrastructure. One measure deals with where advanced AI chips can go. The other deals with where AI data centers can be built inside the U.S. and how their electricity demand should be matched.
The timing is also important. The order came with less than a week left in President Biden's term. Donald Trump is expected to return to the presidency, and the source article notes that he is expected to reverse many Biden administration policies.
What to watch next
The immediate question is how the Department of Defense and Department of Energy will handle potential bids for federal sites. The White House said the departments would receive proper resources for inspection and approval, but the source article does not provide a project timeline.
For the AI industry, the order sets up a framework with several practical conditions:
- AI companies may lease federal sites owned by the Department of Defense and Department of Energy.
- Companies must pay the full cost to build, operate, and maintain the data centers.
- Projects must bring online clean energy resources matching the facilities' electricity needs.
- The policy is intended to support U.S. AI leadership and reduce dependence on other countries for AI infrastructure.
The policy could become a significant marker in the debate over AI data centers, federal land, and clean energy. But its future may depend on what happens after the presidential transition, given the expectation that Donald Trump will reverse many Biden administration policies.