What does Biden's new order mean for the future of AI infrastructure in America

President Biden signed an executive order to enhance energy resources for AI data centers in the U.S. The order instructs federal agencies to expedite the development of AI infrastructure at government sites while ensuring compliance with certain requirements. Federal sites will become available for AI data centers and clean energy facilities. Agencies will facilitate electric grid connections and streamline construction permits. The electricity demand for U.S. data centers has tripled in the past decade and may double or triple again by 2028, with projected consumption reaching 12% of the country's electricity. The Departments of Defense and Energy will identify sites for private AI data centers, and developers will finance their construction while ensuring clean energy supply. The order mandates public labor agreements for federal site construction and requires studies on data center impacts on electricity prices. Additionally, the Interior Department will identify lands for clean energy development to support these centers. The order aligns with proposals to limit AI chip exports due to security concerns, but environmental groups criticize it for insufficient protections. The executive order does not address water usage issues related to data centers. The growth of the AI sector brings challenges in balancing technological advancement with environmental stewardship.

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