White House eyes grid reforms, federal land use, and streamlined permits
The Trump administration is preparing a sweeping package of executive actions aimed at accelerating the U.S. artificial intelligence (AI) industry by addressing the nation’s strained energy infrastructure, according to four sources familiar with the discussions.
The initiative includes fast-tracking energy projects, opening federal land for data center development, and unveiling a comprehensive AI Action Plan by July 23. These efforts are intended to meet the soaring energy demands of AI development while reinforcing the U.S. position in the global tech race against China.
Rising AI demand sparks urgent power needs
Training large-scale AI models consumes massive electricity, fueling the first major increase in U.S. power demand in decades. Between 2024 and 2029, electricity consumption is expected to grow five times faster than 2022 forecasts, according to Grid Strategies. Deloitte projects AI data center demand could increase over 30-fold by 2035.
To address mounting bottlenecks, the administration is considering prioritizing grid connections for shovel-ready power projects and offering federal land—managed by the Departments of Defense and Interior—for new data centers. A nationwide Clean Water Act permit is also under discussion to streamline environmental approvals for AI infrastructure.
Federal land, permitting reforms on the table
Data center development faces zoning hurdles and local opposition, especially given the large land and resource footprints required. Executive orders would offer a workaround by providing developers access to federally managed sites, including unused military and public land. This would be complemented by a federal permitting framework to replace the state-by-state process that currently slows deployment.
These actions follow Trump’s January declaration of a national energy emergency, which aimed to remove regulatory barriers to fossil fuel extraction and accelerate the construction of power plants. The same month, he also convened top tech CEOs to announce the Stargate Project, a multi-billion dollar OpenAI-led initiative to create 100,000 U.S. jobs and expand national data center capacity.
AI Action Day and upcoming policy roadmap
The administration’s AI Action Plan, ordered in January, is expected to be released July 23. That day could be designated “AI Action Day” to spotlight the White House’s commitment. The report will include input from the National Security Council and outline regulatory reforms aimed at cementing America’s lead in artificial intelligence.
Trump will preview the strategy during a speech at an AI and energy event hosted by Senator Dave McCormick in Pennsylvania on July 15, a state that recently secured a $20 billion investment from Amazon for new data centers.
