U.S. Energy Department Identifies 16 Sites for AI Infrastructure and Data Center Development

The U.S. Energy Department on April 3 announced plans to position the U.S. as a global leader in (AI) and reduce energy expenditures by co-locating new energy infrastructure and data centers on its lands. The department issued a request for information to explore the potential utilization of federal lands for AI infrastructure expansion to support increasing demand for data centers. The RFI aims to gather information on potential development approaches, technology solutions, operational models, and economic considerations associated with establishing AI infrastructure.

The department has pinpointed 16 possible locations to accommodate rapid data center development and allow for the construction of energy assets without any significant hindrance. The department is exploring prospects to accelerate AI and energy infrastructure growth across the U.S., prioritizing public-private partnerships to advance the use of innovative technologies and strategies.

As AI data centers expand, the demand for electricity will increase significantly and could strain the electric grid. Major tech companies are looking to nuclear energy to meet their necessary energy needs. Across the U.S. unprecedented projections for electricity demand growth driven by data centers has prompted calls for additional capacity to maintain grid reliability. Data centers are expected to consume 6.7 to 12 percent of total U.S. electricity by 2028, up from about 4.4 percent in 2023, according to the U.S. Energy Department.

The department seeks information from energy developers, data center designers, and the wider U.S. public to strengthen the collaboration between stakeholders. Moreover, the information collated will be utilized to boost private-public relationships, enhance development and allow the building of AI infrastructure at chosen department sites with an aim of becoming operational by the end of 2027.