You may have noticed a rise in media coverage of data centers recently. These facilities, which require significant amounts of water and energy, are experiencing rapid growth in several countries, including the U.S. The driving force behind this expansion is predictable. Companies investing in artificial intelligence depend on these infrastructures to train and operate language models.
However, the U.S. is understandably wary of technology companies establishing AI data centers outside its borders. These infrastructures are regarded as strategic assets, and in the event of any unforeseen circumstances, it’s preferable that they be secured domestically. As a result, outgoing President Joe Biden’s administration recently introduced incentives to encourage the construction of AI data centers within the country.
Data Centers on Federal Land
On Jan. 14, the White House announced an executive order that allows the leasing of federal land for the construction of data centers. The order requires the Department of Defense and the Department of Energy to identify suitable sites for this technology infrastructure. It also encourages the use of clean energy sources for operations.
In the press release, President Biden pointed out, “We will not let America be out-built when it comes to the technology that will define the future, nor should we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water.”
Companies that wish to take advantage of this opportunity must meet certain conditions, such as using an adequate amount of U.S.-produced semiconductors. This move is intended to support the domestic semiconductor industry. Currently, Asia produces nearly 90% of memory chips, 75% of microprocessors, and 80% of wafers. The U.S. aims to manufacture 20% of leading-edge chips by 2030.
What are the real reasons for companies to choose the U.S. over other parts of the world? One main advantage is government support. The government has committed to reducing red tape and prioritizing the permitting process for AI data centers on federal land. Companies will also benefit from the decision that the DOF and the DOE will handle the often challenging environmental analyses.
Additionally, the government plans to actively accelerate various aspects of projects, including planning, construction, and the development of infrastructure for future data centers. It’s also promised to facilitate access to the power grid. Overall, the U.S. is offering an attractive combination of benefits to encourage the rapid establishment of AI data centers on its soil.
Image | Jordan Harrison | Igor Omilaev
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