P R E M I U M

AI | Tuesday, January 14

Trump and Biden Agree on AI Data Centers, Disagree on How They’re Built


The hits keep on coming for data centers (infrastructure for training and deploying AI models). President-elect Trump plans to invest  $20 billion in data center development, and now, President Biden is signing an executive order to open federal lands for AI data centers.

The Departments of Defense and Energy will each identify at least three sites suitable for private-sector AI data center development. These sites will be selected based on high-capacity transmission infrastructure availability and minimal impact on communities and the environment. However, Trump, not keen on the whole "climate change" and environment thing, has announced plans to expedite the environmental review process for investments exceeding $1 billion.

Anyway…this push is another instance of the USA not holding back when it comes to maintaining global leadership in AI development, which is an obvious counter to any national security risks from adversaries like China, Russia, North Korea, and others. As we've written, many leading AI companies (OpenAI, Anthropic, Meta, etc.) are partnered with some of the biggest names in the US military, knowing full well that the one who leads almost always has the most significant, brightest stick.

And don't expect any old data center business to come waltzing onto these proposed federal lands and start building. Private enterprises undertaking said projects are obligated to fully finance all construction, operational, and maintenance expenses while implementing clean energy generation systems scaled to meet their facilities' capacity requirements. This detail was Biden, so we'll see if this happens under Trump. Developers must also comply with laboratory security protocols and conduct comprehensive assessments of national security implications (likely to prevent spies/leaks) while ensuring fair labor practices. These tentative requirements guarantee that projects are financially sustainable, environmentally responsible, secure, and equitable for all stakeholders. Considering how important data centers are to this AI track the USA and the world are on now, making sure they are successful and fast is not only important but paramount.


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