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Trump administration offers federal lands for data center development

Energy Department identifies 16 sites for AI projects
The Energy Department identified 16 federal sites where tech companies could build data centers to accelerate development of AI, including the Pacific Northwest National Laboratory in southeast Washington. (PNNL)
The Energy Department identified 16 federal sites where tech companies could build data centers to accelerate development of AI, including the Pacific Northwest National Laboratory in southeast Washington. (PNNL)
CoStar News
April 7, 2025 | 9:28 P.M.

The U.S. Energy Department identified 16 federal sites where tech companies could fast-track development of data centers and power plants to support the boom in artificial intelligence technology.

The sites include the Los Alamos National Laboratory near Santa Fe, New Mexico, known for its role during World War II in developing the first atomic bomb as part of the Manhattan Project. The properties identified as potential sites include other national labs such as Oak Ridge in Tennessee, Pacific Northwest National Laboratory in southeast Washington and Argonne near Chicago.

The Energy Department posted a notice seeking input from companies, including data center and energy developers, to explore partnerships in building and operating such facilities with a goal of opening sites by the end of 2027.

"The United States has long been at the forefront of artificial intelligence innovation. Maintaining that leadership is a key national and economic security priority," the department said in the request for information notice.

The move comes as the Trump administration announced sweeping tariffs that roiled global financial markets. Some real estate and technology analysts said the tariffs could increase the cost of data center construction materials and equipment.

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Outgoing President Joe Biden signed an executive order in January opening some federal lands that could provide more locations to build data centers. Trump said after returning to the White House that he supported the move and would not rescind Biden's order.

"The global race for AI dominance is the next Manhattan Project,” Trump's Energy secretary, Chris Wright, said in a statement. “The Department of Energy is taking important steps to leverage our domestic resources to power the AI revolution, while continuing to deliver affordable, reliable and secure energy to the American people.”

Microsoft, Amazon, Google, Meta and other tech giants have focused on securing nuclear power plants and other electricity sources as they push to develop massive AI data centers.

The Energy Department said the sites are ideally suited for quick data center construction, including in-place energy infrastructure and "the ability to fast-track permitting for new energy generation such as nuclear,” the agency said in the statement.

“The Trump Administration will unleash federal resources to build out the data resources needed for an AI-powered future,” White House Office of Science and Technology Policy Director Michael Kratsios said in the statement.

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