Something Biden and Trump Can Agree On?—Data Centers, AI and Energy Generation

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https://www.gravel2gavel.com/files/2025/01/Seal_of_the_President_of_the_United_States.svg_-300x300.pngLast week, on one of his final days in office, President Biden signed an executive order aimed at boosting the development of energy facilities and data centers for artificial intelligence (AI) technology. Executive Order 14141 directs the secretaries of Defense, Energy and the Interior to lease sites on federal land to private sector companies for the purpose of building data centers and energy generation and transmission facilities. Noting that AI technology has become, and is expected to remain, a “defining technology of our era,” and that both economic and national security risks could arise if the United States falls behind in the race to build AI infrastructure, the Order seeks to reduce regulatory barriers to these projects by speeding the permitting process, and ambitiously seeks to enable construction at these federal sites to commence by January 1, 2026.

In a statement accompanying the Order, President Biden emphasized the importance of connecting these AI facilities to clean energy resources, stating that the U.S. should not “sacrifice critical environmental standards” as it seeks to remain a global leader in AI technology. To that end, the Order prioritizes the deployment of solar, wind, geothermal, nuclear and other low- or no-carbon technologies (including energy storage and carbon capture systems) to support these AI data centers.

But the Biden administration has now officially ended, and the job of carrying out the directives of the Order will now fall to President Trump and his incoming administration. President Trump’s approach to regulation is likely to be very different from President Biden’s, including with respect to clean energy. What might the change in administration mean for future development of AI, data centers and energy resources in the U.S.?

  • Reduced focus on renewable energy. Former North Dakota Governor Doug Burgum, whom President Trump has nominated to lead the Department of the Interior and to help guide U.S. energy policy, has emphasized the need for the U.S. to bring more “baseload” energy resources online in the coming years to meet AI’s accelerating electricity demands. In comments last week, Burgum noted that renewable energy sources like solar and wind are intermittent, and don’t generate electricity when the sun is down or the wind is not blowing. While the Order expressly encourages the use of these and other renewable or low-carbon energy technologies, it does not specifically preclude the use of non-renewable energy sources in connection with the development of new AI data centers. Based on Burgum’s comments (and the remarks of many others associated with the new administration, including President Trump himself), the Trump administration is likely to be more supportive of using non-renewable energy sources to power AI data centers on federal lands.
  • Continued efforts to streamline permitting. One aspect of the Order that will likely find support in the Trump White House is the intention to reduce permitting backlogs for AI and energy projects on federal lands. The Order requires federal agencies to prioritize the speedy review and approval of AI and clean energy projects on federal lands, and directs agency heads to identify and propose new “categorical exclusions” from federal environmental review requirements that will enhance the ability of private sector companies to build both AI infrastructure and clean energy projects. President Trump has indicated that he plans to reduce permitting requirements and delays for major development projects, including energy projects. Following through on that promise would be a major boon for the development of AI facilities and all kinds of energy projects, including clean energy projects.
  • Strong support for AI. One thing that likely won’t change as the Trump administration kicks into gear: the White House wants the U.S. to be the global leader in AI technology and infrastructure. The Order recites that building AI infrastructure in the U.S. is critical to ensuring that the U.S. stays ahead of competitors and foreign adversaries. President Trump, in his first term, felt much the same; he launched an “American AI Initiative,” and noted in a statement at that time that “developing America’s ability to leverage AI is critical to increasing prosperity, enhancing our national and economic security, and protecting our values.” The Trump 2.0 administration will feature a new “AI and Crypto Czar,” suggesting ongoing support for AI technology as well as the need for increased data center capacity to power the ever-growing and President Trump endorsed crypto industry.

AI is here to stay, and the U.S. government will continue to have a strong interest in developing AI technology domestically. Developing data centers, and energy resources to power them, will be critical to the ongoing and future success of AI in the U.S. Where those data centers are located, who is allowed to build them, and where they source their electricity, all remain to be seen. Whatever the answers, it is clear that the era of opportunity for AI in America is only just beginning.