U.S. Department of Energy Pursues Data Centers on Federal Lands

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On April 7, the Office of Policy for U.S. Department of Energy (DOE) published a Request for Information (RFI) seeking input from industry professionals, grid operators, local communities, Tribal governments, and other stakeholders regarding the development and operation of AI infrastructure—including data centers—on DOE-owned or managed lands. This initiative aligns with the January 2025 Executive Order, Removing Barriers to American Leadership in Artificial Intelligence, which underscores AI as a national and economic security priority. DOE is hoping the RFI provides information that allows it to better understand site interest, strategic data center design approaches, potential power needs, financial and contractual considerations related to leasing DOE-owned or managed lands, and the potential benefits and challenges associated with hosting AI infrastructure on DOE land.

Key Takeaways
DOE has identified 16 agency-owned or managed locations nationwide, including sites at major research facilities such as Argonne, Brookhaven, Los Alamos, Oak Ridge and Idaho National Laboratory as potential sites for hosting AI infrastructure. Many of these sites offer unique advantages such as secure land, proximity to advanced energy sources, scalability and access to water and mineral sources. DOE intends to prioritize select sites for future solicitations based in part on the responses to this RFI.

DOE’s vision is to designate and entitle these sites for the construction of AI infrastructure by the end of 2025—targeting operational commencement by the end of 2027. The government anticipates authorizing land use rights through long-term ground lease or easement structures, depending on the desired length and terms of the agreements.

The RFI specifies that broad input is sought across 10 categories to assess the feasibility and value of locating potential AI infrastructure on DOE lands. Specifically, the agency is looking for feedback on preferred sites and their characteristics, design and technical considerations for data centers (including cooling and water needs), and opportunities for co-locating innovative energy technologies such as nuclear, geothermal and energy storage.

The RFI also seeks details on off-site power access and transmission requirements, preferred realty agreement structures, and potential economic and collaboration benefits with National Laboratories and local communities. Additionally, DOE requests information on anticipated environmental impacts, permitting needs, potential development challenges—such as supply chain or cybersecurity obstacles—and strategies for engaging Tribes, local governments and other stakeholders.

Finally, the agency is interested in hearing what additional information would be required from the DOE for a respondent to thoroughly respond to a potential future solicitation. This comprehensive inquiry is designed to inform future solicitations and shape a national strategy for scaling secure, sustainable AI infrastructure.

DOE’s long-term plan could thus help create opportunities for advanced energy developers to develop co-located energy facilities to power data centers. The agency’s publication signals a major federal push to accelerate AI infrastructure development while offering a rare opportunity for private entities to shape how and where that happens, and help influence the structure of future solicitations. With DOE lands offering large, secure and strategically located sites, companies stand to gain early access to prime development opportunities. This pursuit opens the door for long-term federal land use agreements, potential public-private partnerships, and collaboratives with National Laboratories.

Responses to the RFI are requested by May 7, 2025. Information that has the potential to compromise the competitive position of any participants will not be publicly released. Responses containing sensitive information are encouraged to be properly marked as confidential, proprietary or privileged by the DOE.

Pillsbury is available to assist stakeholders in navigating the RFI process and preparing for future DOE solicitations. Our team, led by authorities in energy and infrastructure law, is ready to advise clients on all aspects of engagement with DOE, from drafting RFI submissions and evaluating federal land opportunities to generating competitive responses to future Requests for Proposals (RFPs)—a process that is both an art and a science.


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