News

Trump Administration Prepares Executive Actions to Boost Energy Supply for AI Expansion

• By John K. Waters
• 06/27/2025

The Trump administration is preparing a package of executive actions aimed at increasing energy supply to support artificial intelligence development in the United States, as the country competes with China in a technological race that requires massive power resources, Reuters has reported.

The planned measures focus on addressing infrastructure bottlenecks that have hindered rapid expansion of AI data centers, which require enormous amounts of electricity to process the vast datasets behind artificial intelligence systems.

Grid Connection and Federal Land Access
The executive actions under consideration include simplifying the process for connecting power-generating projects to the electrical grid and making federal land available for data center construction, the sources said. The administration is also considering streamlining permitting for data centers by creating a nationwide Clean Water Act permit rather than requiring state-by-state approvals.

Among the proposals is one focused on identifying more fully developed power projects and moving them higher on connection waiting lists, two sources said. The administration could offer land managed by the Defense Department or Interior Department to project developers as a solution to data center siting challenges.

Energy Demand Projections
Training large-scale AI models requires substantial electricity, driving the first major increase in U.S. power demand in decades. Between 2024 and 2029, U.S. electricity demand is projected to grow at five times the rate predicted in 2022, according to power-sector consultancy Grid Strategies.

Power demand from AI data centers could grow more than thirtyfold by 2035, according to a report by consultancy Deloitte. Goldman Sachs projected earlier this year that AI data center expansion will increase global power demand by 165% over the next five years.

AI Action Plan and Public Events
The administration plans to release a comprehensive AI action plan and organize public events to highlight these efforts, Reuters' sources said. Input from the National Security Council, is due July 23. The White House is considering designating July 23 as "AI Action Day" to draw attention to the report and demonstrate commitment to industry expansion.

Trump is scheduled to speak at an AI and energy event hosted by Senator Dave McCormick in Pennsylvania on July 15.

Nuclear Power Push
In May 2025, Trump signed four executive orders aimed at accelerating nuclear energy development to support AI data centers, with goals to increase nuclear production four-fold over current levels in the next 25 years. Energy Secretary Chris Wright has characterized the race to develop power sources for AI as "Manhattan Project 2," referencing the massive U.S. atomic bomb program during World War II.

The Department of Energy announced 16 potential DOE sites for "rapid AI data center construction," with goals to initiate construction by the end of 2025 and commence operations by the end of 2027 through public-private partnerships.

Coal Infrastructure Initiative
In April, Trump issued an executive order directing his Cabinet to identify areas where coal-powered infrastructure is available to support AI data centers and determine whether the infrastructure can be expanded to meet growing electricity demand from the technology sector.

Trump has also signed additional executive orders to bolster the coal industry, relaxing restrictions on coal mining, leasing and exports. The orders will keep open some coal plants scheduled for retirement and direct federal agencies to assess how electricity from coal-fired power plants can meet rising AI power demand.

Regulatory Challenges
Building and connecting new power generation to the grid has been a major obstacle because projects require extensive impact studies that can take years to complete, while existing transmission infrastructure is overwhelmed.

Co-location of data centers with dedicated power sources faces complex regulatory hurdles. There are currently no Federal Energy Regulatory Commission-recognized or state-approved regulatory pathways for co-location of large base-load generation units to directly serve single end-users with massive load requirements.

In November 2024, the Federal Energy Regulatory Commission rejected a plan by the operator of the Susquehanna nuclear plant to dedicate substantial capacity to serve a co-located data center, citing technical grounds while noting it did not rule out approving pathways for co-location interconnections in the future.

Industry Context
The initiatives come as tech companies explore various solutions to meet AI's energy requirements. Several major technology companies have announced plans to restart decommissioned nuclear reactors or invest in small modular reactors to support their operations.

In January, Trump hosted technology CEOs at the White House to highlight the Stargate Project, a multi-billion effort led by OpenAI, SoftBank and Oracle to build data centers and create more than 100,000 jobs in the United States.

Trump declared a national energy emergency on his first day in office aimed at removing regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity online.