Biden signs executive order to accelerate AI infrastructure build-out in the US

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President Joe Biden has signed an executive order aimed at scaling up AI infrastructure in the United States to address the growing energy and supply demands of advanced technology. This directive specifically instructs the Departments of Defense and Energy to lease federal land to private companies for the rapid construction of "frontier AI infrastructure." The goal is to enable the development of large-scale AI data centers that will be equipped with clean energy sources.

The White House has outlined that access to these federal sites will be contingent upon "competitive solicitations" for proposals from the private sector. Companies that lease the land will be responsible for the costs associated with both the construction and operation of these facilities, emphasizing the requirement for sustainable energy solutions to power the data centers.

Biden has highlighted the strategic importance of maintaining the U.S.'s leadership in AI, warning that the technology has significant implications for national security and the potential to improve the lives of Americans when utilized responsibly. He stated, "That is why today, I am signing a historic Executive Order to accelerate the speed at which we build the next generation of AI infrastructure here in America."

The executive order coincides with a crucial moment for the AI industry, as leading companies have recognized the need for substantial infrastructure investments. The growth of AI relies heavily on the establishment of data centers and the procurement of clean energy supplies. Additionally, the demand for chip manufacturing facilities to produce essential computing power has increased, as companies aim to reduce their dependency on overseas production.

This executive order is expected to invigorate private sector interest in AI infrastructure development, with significant investments already being announced. Notably, Microsoft and BlackRock recently launched a $30 billion megafund aimed at fostering infrastructure investments that enhance American competitiveness in the AI sector, with a total potential investment of $100 billion.