DOE: Pairing AI and On-Site Power at Federal Lands

The U.S. Department of Energy is inviting artificial intelligence-focused data center firms to partner with power generators on co-located projects within federal lands.

The DOE’s latest announcement aims to intersect future AI demand with electricity resource adequacy includes the selection of four sites within which to create collaborations. Those sites are on lands including the Idaho National Laboratory, Oak Ridge Reservation in Tennessee, the Paducah Gaseous Diffusion Plant in Kentucky and Savannah River Site in South Carolina.

Leadership at all four federal locations will work with DOE to seek to partner with private sector counterparts on developing AI-enabled data computing centers and power generation projects. President Trump outlined such a plan in his recent executive orders on accelerating federal permitting of data center infrastructure, nuclear reactor technologies and encouraging broader deployment of baseload energy resources such as natural gas and nuclear.

"By leveraging DOE land assets for the deployment of AI and energy infrastructure, we are taking a bold step to accelerate the next Manhattan Project—ensuring U.S. AI and energy leadership,” said Chris Wright, Secretary of Energy, referring the collaboration which developed the first atomic bomb during World War II. “These sites are uniquely positioned to host data centers as well as power generation to bolster grid reliability, strengthen our national security, and reduce energy costs.”

Trump is not alone in his declarations that the U.S. cannot afford to lose an AI technology race to China, as such sentiments have echoed by numerous business and political leaders. In the meantime, meeting the demand load from future AI facilities could require more than 125 GW of new electricity capacity nationwide.

Behind-the-meter power is a key solution to ensuring "America's AI dominance," Toby Neugebauer, private equity investor and co-founder of energy startup Fermi America, said during his company's announcement to build co-located power with data center capacity in the Texas Panhandle. "Without it, we're handing China the keys to AI. There will only be one winner."

Earlier this month, the DOE announced it was pushing ahead with a new pilot program to accelerate development of advanced nuclear power generation such as small modular reactors. The Trump Administration also wants to tighten supply chains for critical elements such as uranium to fuel nuclear reactors.

The push to energize growing AI capacity has united leading firms on both sides of the data center and energy sectors. The collaborations across the spectrum include projects by PPL, Blackstone, Chevron, Google, Microsoft, Constellation, Commonwealth Fusion Systems, Oracle, GE Vernova, Meta, Caterpillar, Equinix, Bloom Energy, SB Energy and EdgeConneX, among others.

The DOE site selection did not mention timelines for any of the four co-located projects nor private partnerships. Each of those selected federal sites have on-site power projects underway or in operation at one time.