DOE Eyes Federal Deserts for Massive AI Data Center Boom
Published Date: 4/7/2025
Notice
Summary
The Department of Energy wants to use its land to build AI data centers and other AI infrastructure to keep the U.S. a global leader in artificial intelligence. They’re asking companies, utilities, and communities for ideas by May 7, 2025, aiming to start building by the end of 2025 and have everything running by 2027. This could bring new tech jobs and boost the economy while supporting national security.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Developers to Bear Construction and Transmission Costs
DOE says it would grant land use by a long-term Ground Lease or an Easement, and non‑federal developers would be expected to bear all costs and liabilities for construction and operation of AI data centers, including costs to transmission providers. The notice also says in‑kind contributions may be counted toward a developer's costs and that developers would need to ensure compliance with state and local electricity/interconnection requirements.
DOE Signals Interest in Co-located Energy Generation
DOE explicitly seeks input on co‑locating data centers with on‑site energy generation and storage, including nuclear reactors, enhanced geothermal systems, fuel cells, carbon capture, and energy storage. The RFI mentions examples such as nuclear siting work at Idaho National Laboratory and a potential regional small modular reactor (SMR) near Oak Ridge with up to 800 MW regional capacity.
Near-Term Opportunity Window for AI Projects
DOE requests input by May 7, 2025 and aims to enable construction to begin by the end of 2025 with a target to commence operations by the end of 2027. DOE says it will use RFI responses to inform potential future solicitations and to prioritize sites for future private‑sector proposals.
16 DOE Sites Identified with Specific Capacities
The RFI lists 16 DOE-owned or -managed sites being considered for AI infrastructure (for example, Idaho National Laboratory; Argonne; NREL; Oak Ridge; Los Alamos; Paducah; Portsmouth). Some site details are explicit, such as INL's 890‑square mile site with about 62,000 acres of DOE land, Paducah being designed for up to 3 GW and 30 million gallons/day of water, and Portsmouth for 2.2 GW and 40 million gallons/day.
Tribal, Community, and Cultural Resource Engagement
DOE asks for Tribal government and community perspectives and says it will communicate with Tribes and stakeholders as appropriate. The RFI requests information on treaty rights and cultural resources (like archaeological sites or burial grounds) to consider during AI center development.
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