The Trump administration is putting together a comprehensive set of executive actions designed to dramatically increase energy supply for America’s rapidly expanding artificial intelligence sector. Four sources familiar with the planning reveal that these moves come as the U.S. and China engage in an intense technological competition that could determine future economic and military dominance.
The amount of energy that AI demands is breathtaking. To train big AI systems, huge amounts of electricity are needed, and the resulting demand is propelling the first major increase in U.S. power use in decades.
The numbers are telling: Between 2024 and 2029, electricity consumption in the U.S. will grow five times as fast as it was previously estimated to do just two years ago, according to Grid Strategies, a power industry consultant.
Even more striking, a new Deloitte report suggests that power demand from AI data centers alone could increase more than thirtyfold by 2035. This explosive growth is putting serious strain on utilities and electrical grids across many states.
Biden Administration Tackles AI’s Power and Land Hurdles
The administration’s planned executive actions target two major obstacles currently slowing AI expansion. First, connecting new power generation to the electrical grid has become a nightmare of bureaucracy. Power projects face extensive impact studies that can drag on for years, while existing transmission infrastructure struggles under overwhelming demand.
The White House is considering a practical solution: identify power projects that are further along in development and move them to the front of the connection waiting list. This approach could significantly speed up the process of bringing new energy sources online.
The second major challenge involves finding suitable locations for data centers. These facilities need substantial space and resources, often running into zoning restrictions or community opposition. The administration’s answer? Offer federal land managed by the Defense Department or the Interior Department to project developers.
Is Trump Streamlining the Process?
Beyond land and power, the administration wants to cut through regulatory red tape. One proposal involves creating a nationwide Clean Water Act permit for data centers, eliminating the current requirement for companies to seek separate permits in each state where they operate.
These efforts build on Trump’s early presidency moves. He declared a national energy emergency on his first day in office, aimed at removing regulatory barriers to oil and gas drilling, coal mining, and building new gas and nuclear power plants. He also ordered his administration to develop an AI Action Plan focused on making “America the world capital in artificial intelligence.”
The Big Picture
The sense of urgency in such plans becomes apparent when you look at the larger picture. The U.S. and China are embroiled in what most would describe as a technological arms race, with AI capabilities likely deciding which country holds economic and military supremacy in the next few decades. Consider the following.
Trump has already demonstrated his commitment to this competition. Earlier this year, he hosted top tech CEOs at the White House to showcase the Stargate Project, a multi-billion-dollar initiative led by OpenAI, SoftBank, and Oracle. This massive undertaking aims to build data centers and create over 100,000 jobs across America.
The administration plans to make July 23 “AI Action Day” to highlight the release of their comprehensive AI Action Plan, which includes input from the National Security Council. Just over a week earlier, on July 15, Trump is scheduled to speak at an AI and energy event in Pennsylvania, hosted by Senator Dave McCormick.
The timing isn’t coincidental. Pennsylvania is currently a hub for AI infrastructure investment, and Amazon recently pledged to build data centers in two Pennsylvania counties for $20 billion.
As the administration prepares to implement these executive orders, the message is as clear as can be: America needs to be at the forefront of the AI revolution and is prepared to remake energy policy and regulatory frameworks to achieve that purpose. The question now is whether this will be enough to tap the enormous energy appetite of an AI future and keep the nation ahead of China.
