President Biden Issues EO to Advance AI Infrastructure

President Biden issued an Executive Order ("E.O.") outlining a strategy to build and secure frontier AI infrastructure in the United States. The E.O. addressed energy demands of AI data centers by supporting the development of large-scale facilities powered by clean energy sources.

The E.O. requires:

• Federal Identification of Sites for AI Data Centers: The Departments of Defense ("DoD") and Energy ("DOE") are required to identify at least three Federal sites by February 28, 2025 for leasing to private entities to construct state-of-the-art AI data centers. These data centers would support advanced AI model training while being powered by clean energy technologies such as wind, solar, geothermal and nuclear energy.

• Securing Clean Energy for AI Operations: Winning developers of AI infrastructure projects are required to procure clean energy resources to match the data centers' electricity needs on an hourly basis. The projects must not raise electricity costs for households or businesses.

• High Standards for Security and Labor: Cybersecurity measures are required to include safeguards for AI model storage and operation. Developers must also adhere to high labor standards, such as prevailing wages, apprenticeship programs and strong labor-management agreements, for construction and operation.

• Support for Small and Medium-Sized Innovators: At least one AI infrastructure project proposal is to be selected from small- or medium-sized organizations to ensure fair participation in the AI ecosystem.

• Streamlining Permitting and Grid Infrastructure: Federal agencies are to be directed to prioritize and expedite permits for AI infrastructure projects, with a goal of issuing all permits by the end of 2025. The DOE is tasked with identifying transmission grid upgrades to support AI data centers and ensuring reliable access to clean power.

• Protection of National Security: AI developers operating on federal sites are to collaborate with the government on national security initiatives, provide secure access to AI models for defense applications and report financial investments from foreign entities to ensure risks are mitigated.

• Energy and Efficiency Standards:
  AI data centers on Federal sites are to meet energy efficiency goals, including achieving a "power usage effectiveness" ratio below 1.1 and promote the beneficial use of waste heat.

In the E.O., President Biden emphasized the importance of building AI infrastructure domestically to prevent reliance on foreign supply chains and to mitigate risks of adversaries gaining access to sensitive or powerful AI systems.