Washington targets federal land and energy reforms to power AI expansion

The Trump administration is preparing a set of executive actions designed to accelerate the expansion of artificial intelligence in the United States by boosting energy supply and infrastructure, four sources familiar with the matter told Reuters.

As the United States and China compete for dominance in AI technology — seen as key to future economic and military power — the Trump administration plans to address the escalating power demands created by the rapid growth of AI.

The energy-intensive nature of AI development has placed unprecedented pressure on utility companies and power grids across the country.

The upcoming actions are expected to focus on facilitating faster connection of power-generating projects to the electrical grid and offering federal land for the construction of AI data centres, the sources said. In addition to policy changes, the White House plans to unveil a comprehensive AI Action Plan and hold public events to promote these efforts, the sources added, speaking on condition of anonymity.

Training large-scale AI models demands enormous amounts of electricity, fueling the first major spike in U.S. energy demand in decades. Consultancy firm Grid Strategies estimates that between 2024 and 2029, electricity demand will grow at five times the rate predicted just two years ago. Meanwhile, Deloitte forecasts that power demand from AI-related data centers could surge more than thirtyfold by 2035.

However, building new power generation and integrating it into the grid remains a significant obstacle. Projects are frequently delayed by lengthy environmental impact assessments, and the nation’s transmission infrastructure is already heavily burdened.

To address this, the administration may prioritize fully developed energy projects and move them up the queue for grid connections, two sources said. Siting data centers has also proven challenging due to their large land and resource requirements, zoning restrictions, and community resistance.

One proposed solution involves offering federal land — managed by the Department of Defense or Department of the Interior — for AI infrastructure development. The administration is also exploring a streamlined nationwide permitting system for data centers under the Clean Water Act, eliminating the need for separate state approvals.

In January, Trump hosted top technology executives at the White House to showcase the Stargate Project, a multi-billion-dollar initiative led by OpenAI, SoftBank, and Oracle. The project aims to build state-of-the-art data centers and generate over 100,000 jobs in the United States.

Since taking office for a second term, Trump has made winning the AI race against China a central priority. On his first day back in office, he declared a national energy emergency to dismantle regulatory barriers to oil, gas, coal, and critical minerals development — as well as nuclear and gas power plant construction — to increase the nation's energy capacity.

In the same month, he directed his administration to produce a national AI Action Plan with the goal of making the U.S. the global hub of artificial intelligence and eliminating regulatory hurdles that slow down the sector's growth. The final version of the report, compiled with input from the National Security Council, is due by July 23.

The White House is considering declaring that day “AI Action Day” to spotlight the administration’s focus on the sector and signal its commitment to keeping pace with China, two of the sources said.

Ahead of that, Trump is expected to speak at an AI and energy summit in Pennsylvania on July 15, organized by Senator Dave McCormick. Earlier this month, Amazon announced a $20 billion investment to develop data centers in two counties in Pennsylvania.

By Tamilla Hasanova