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Biden signs executive order aimed at growing AI infrastructure in the US

Jan 14, 2025 - financialpost.com
President Joe Biden signed an executive order aimed at accelerating the development of AI infrastructure in the United States. The order directs federal agencies to expedite the construction of large-scale AI data centers and clean power facilities on government sites, with a focus on reducing bottlenecks in connecting these energy-intensive centers to new electricity sources. The initiative seeks to ensure the U.S. remains a leader in AI technology while maintaining environmental standards. The order mandates that private developers cover all construction and operational costs to prevent increased electricity prices for consumers. Additionally, the order emphasizes the use of public labor agreements and reserves some sites for small and medium-sized AI companies.

The executive order also addresses national security concerns by promoting the domestic development of AI infrastructure to prevent reliance on foreign countries. It follows the administration's proposed restrictions on AI chip exports, balancing national security with economic interests. However, the order does not address the water consumption of AI data centers, a growing concern in areas with multiple centers. The Interior Department will identify suitable lands for clean energy development to support these initiatives, and the Energy Department will assist state utility commissions in designing tariffs for new large customers.

Key takeaways:

  • President Joe Biden signed an executive order to accelerate the development of AI infrastructure in the U.S., focusing on large-scale data centers and clean power facilities.
  • The order directs federal agencies to make sites available for AI data centers and clean power facilities, with requirements for developers to cover construction costs and ensure clean energy use.
  • The initiative aims to prevent national security risks by keeping AI infrastructure within the U.S. and reducing dependency on foreign countries for AI tools.
  • Concerns remain about the water consumption of AI data centers, which the executive order does not address, despite their significant impact on local water resources.
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