Computer systems in racks.

DOE selects data center development sites to promote domestic AI leadership

July 29, 2025

As artificial intelligence (AI) innovation continues, the U.S. will need to position itself as a global leader on critical manufacturing processes and technologies. Building on this effort, the federal government recently released an executive order directing the nation to build out AI data centers and related infrastructure to facilitate and accelerate domestic AI dominance.

The executive order, announced July 23, details the Trump administration’s efforts to expand AI technologies, prioritizing the construction of data centers, high-voltage transmission lines and other necessary infrastructure to drive production and innovation. The administration plans to use federally owned land and resources to fast-track data center development. With a high energy demand of greater that 100 megawatts (MW) needed to support the new load, the U.S. will continue to invest in promoting reliable energy generators, according to White House officials.

The first steps toward actualizing the administration’s vision for AI development are already underway. The Department of Energy (DOE) has selected four sites that will move forward with plans to invite private sector partners to develop AI data center and energy generation projects. The DOE’s selection of sites includes the Idaho National Laboratory, the Oak Ridge Reservation, the Paducah Gaseous Diffusion Plant and the Savannah River Site.

Each selected site will release solicitations in the coming months for private sector partners, w recipients likely to be announced by year’s end. Each site will release additional details regarding project scope, eligibility requirements and submission guidelines soon.

The DOE’s announcement builds on efforts to use federal lands to lower energy costs and spearhead the nation’s rise to AI global success. The agency released a Request for Information (RFI) in April to learn how to best use federal land for AAI infrastructure development.

The collected information was used to guide the DOE’s decision-making process and resulted in its selecting four of 16 potential sites for collaboration. The sites were selected due to their suitability for AI development, including large-scale data centers, new power generation and other required infrastructure. White House officials anticipate construction on selected sites to start by the end of the year.

Efforts to support the rapidly expanding AI industry will require extensive production of materials, products and infrastructure to enable data center projects. Some of these include:

  • Energy infrastructure, including transmission lines, natural gas pipelines or laterals, substations, switchyards, transformers, switchgear and system protective facilities.
  • Coal, nuclear and geothermal power equipment.
  • Natural gas turbines.
  • Other forms of dispatchable baseload energy sources, including electrical infrastructure.
  • Semiconductors and semiconductor materials.
  • Networking equipment.
  • Data storage, including hardware storage systems, software for data management and production and integrated services in conjunction with public cloud providers.

The administration will only support projects that meet the necessary qualifications for consideration in programs executed through the executive order. These qualifying data center or covered component projects must:

  • Have a sponsor that has committed at least $500 million in capital expenses.
  • Involve an incremental electric load addition of greater than 100MW.
  • Protect national security.
  • Have the Secretary of Defense, the Interior, of Commerce or of Energy designate it as a qualifying project.

Photo by Sergei Starostin from Pexels

Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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