WASHINGTON – The rapid growth of the artificial intelligence (AI) sector is driving the first notable increase in U.S. electricity demand in decades. In response, the Trump administration is preparing a series of executive actions to ensure the country’s energy infrastructure can keep pace with AI’s expansion, according to four insiders familiar with the matter.
As the U.S. and China compete to dominate the AI landscape—a race with significant economic and military implications—the demand for high-powered data processing is straining electric grids and utility systems across the nation.
Key measures being considered include streamlining the process for energy projects to link to the power grid and offering federal land for the construction of new data centres. These steps are aimed at accelerating the nation’s ability to meet AI’s energy requirements.
The administration also plans to release a comprehensive AI action strategy and hold a series of public events to highlight its efforts, the sources said, speaking on condition of anonymity due to the sensitivity of internal discussions.
Requests for comment from the White House were not answered.
The electricity consumption required to train and run large AI models is immense. This demand is contributing to a projected fivefold increase in U.S. electricity use between 2024 and 2029—compared to previous forecasts from just two years ago, according to the energy consultancy Grid Strategies.
Additionally, a recent Deloitte study anticipates that power consumption from AI-related data centres could expand over thirty times by 2035.
Yet, connecting new energy generation to the grid has proven difficult due to the lengthy approval processes and already overburdened transmission systems. To address this, the administration is considering prioritizing fully developed power projects to expedite their connection timelines, two sources revealed.
The siting of data centres poses another challenge. These massive facilities require extensive land and resources, often running into zoning restrictions and community resistance. One proposal under review would offer land managed by the Departments of Defense or Interior to developers to speed up site acquisition.
Another option being explored involves simplifying the permitting process by implementing a nationwide Clean Water Act permit specific to data centre projects, eliminating the need for state-level approvals.
In January, President Trump hosted prominent tech leaders at the White House to spotlight the Stargate Project, a multibillion-dollar initiative by OpenAI, SoftBank, and Oracle to develop cutting-edge data centres and generate over 100,000 new jobs.
On his first day back in office, Trump declared a national energy emergency, aiming to remove regulatory barriers to oil and gas drilling, coal mining, and the construction of nuclear and gas power plants to ramp up energy capacity for the AI boom.
He also instructed his administration to draft an “AI Action Plan” to position the U.S. as the global hub for AI innovation. The plan, which involves collaboration with the National Security Council, is expected by July 23. Sources indicated the administration is considering designating the date as “AI Action Day” to underscore its commitment to AI leadership.
President Trump is scheduled to deliver a speech on AI and energy policy at an event in Pennsylvania on July 15, hosted by Senator Dave McCormick.
Adding to the momentum, Amazon recently committed to a $20 billion investment in new data centres in two Pennsylvania counties.
