In an attempt to stimulate the deployment of artificial intelligence and related infrastructure, the Trump administration has released an action plan and announced the development of data centers on federal land.
The U.S. Department of Energy has chosen four sites around the country to host data centers and related energy infrastructure: the Idaho National Laboratory; Oak Ridge Reservation; Paducah Gaseous Diffusion Plant; and the Savannah River Site.
“By leveraging DOE land assets for the deployment of AI and energy infrastructure, we are taking a bold step to accelerate the next Manhattan Project — ensuring U.S. AI and energy leadership,” Energy Secretary Chris Wright said in a July 24 statement. “These sites are uniquely positioned to host data centers as well as power generation to bolster grid reliability, strengthen our national security and reduce energy costs.”
DOE said it plans to work with data center developers, energy companies and the public in consultation with states, local governments and federally recognized tribes to advance the initiative. Solicitations for proposals to develop the sites will be released in the coming months, and DOE could pick winning proposals by the end of 2025. The department is considering other federal sites for data center developments as well.
The idea to use federal lands for data centers was included in the White House’s AI Action Plan, which was released on July 23. It also contains some broad recommendations for updates in electricity policy.
“The power grid is the lifeblood of the modern economy and a cornerstone of national security, but it is facing a confluence of challenges that demand strategic foresight and decisive action,” the plan said. “Escalating demand driven by electrification and the technological advancements of AI are increasing pressures on the grid. The United States must develop a comprehensive strategy to enhance and expand the power grid designed not just to weather these challenges, but to ensure the grid’s continued strength and capacity for future growth.”
The plan calls for stabilizing “the grid of today as much as possible,” or stopping premature power plant retirements. The existing power grid also can be optimized.
“The United States must explore solutions like advanced grid management technologies and upgrades to power lines that can increase the amount of electricity transmitted along existing routes,” the plan said. “Furthermore, the United States should investigate new and novel ways for large power consumers to manage their power consumption during critical grid periods to enhance reliability and unlock additional power on the system.”
New, reliable, dispatchable power plants need to be connected, the plan said. And the industry should roll out next-generation technologies such as enhanced geothermal, nuclear fission and nuclear fusion.
The plan calls for reforming “power markets to align financial incentives with the goal of grid stability, ensuring that investment in power generation reflects the system’s needs.”
The WATT Coalition and AMP Coalition released a joint statement saying that advanced transmission technologies and grid-enhancing technologies can help in the effort to connect data centers to the grid.
“The Department of Energy found that these technologies together could unlock capacity for more than 100 GW of new power, enough to meet a significant portion of the new load projected over the next 5-8 years,” they said. “These advanced transmission technologies represent a critical near-term pillar for modernizing the grid and meeting the growing power needs of the U.S. while new large-scale transmission lines are built.”
National Electrical Manufacturers Association CEO Debra Phillips called the action plan a welcome development for the industry it represents.
“The plan underscores the criticality of a modernized and resilient power grid, determining that the United States must explore solutions like advanced grid management technologies,” Phillips said. “Electrical manufacturers are at the forefront of this transformation — deploying reconductoring solutions, digital substations and data center strategies that optimize grid capacity and enhance reliability.”
