The Trump Administration Accelerates AI and Data Center Development with Executive Order and DOE Site Selections

Executive Order: Accelerating Permitting for Data Center Infrastructure
The EO, Accelerating Federal Permitting of Data Center Infrastructure, seeks to eliminate real and perceived hurdles to the rapid buildout of AI infrastructure. It underscores and supports the critical roles energy supply and transmission capacity play in enabling AI data center deployment.

The EO directs federal agencies to prioritize and streamline approval processes for “Qualifying Projects,” defined to include AI Data Center Projects requiring over 100 MW of new load, and a range of energy infrastructure, materials, and technologies (defined as “Covered Components”) that support those projects. Examples of Covered Components include infrastructure such as transmission lines and substations, dispatchable baseload energy sources (e.g., gas turbines, nuclear or geothermal power equipment, backup power supply), semiconductor inputs like wafers or dies, networking hardware, and data storage solutions.

The EO takes several specific steps to expedite federal permitting and reduce environmental review delays for Qualifying Projects, including the following:

• Environmental Protection Agency (EPA): The EPA is directed to revise or develop permitting regulations under key environmental laws to streamline approval processes for Qualifying Projects, including the Clean Air Act, the Clean Water Act, CERCLA (Superfund), and the Toxic Substances Control Act. In parallel, the EPA is directed to identify Brownfield and Superfund Sites suitable for reuse and assist stakeholders in returning these sites to productive use as quickly as possible.
• Army Corps of Engineers: The Secretary of the Army is required to assess whether activity-specific nationwide permits under the Clean Water Act and Rivers and Harbors Act should be created to expedite water-related permitting processes related to Qualifying Projects.

• National Environmental Policy Act (NEPA): Given the Administration’s focus on federal land development, Qualifying Projects may trigger review under NEPA. NEPA is often viewed as a major hurdle to permitting because its environmental review process, particularly the preparation of Environmental Impact Statements, can significantly delay project approvals for energy infrastructure and other large-scale developments.

  To accelerate NEPA reviews, the EO directs federal agencies to collaborate with the Council on Environmental Quality (CEQ) to identify and apply existing NEPA categorical exclusions where appropriate—and to develop new exclusions for low-impact actions that support data center development. Agencies have just ten (10) days from the issuance of the Order to initiate this process.

  Notably, many federal agencies are already revising their NEPA regulations in response to the Administration’s broader NEPA reform agenda and recent Supreme Court decisions narrowing NEPA’s scope.

The EO also takes actions to help create federal incentives to spur AI infrastructure development, including the following:

• The EO tasks the Secretary of Commerce, in consultation with the Director of the Office of Science and Technology Policy (OSTP), with launching an initiative to provide financial support for Qualifying Projects through a potential mix of loans, grants, tax incentives, and offtake agreements. Relevant agencies are directed to identify and submit to OSTP relevant existing financial support that can be used to assist Qualifying Projects. This could potentially create a new avenue for provision of existing energy incentives.
• Lastly, the EO instructs the DOE and the Department of the Interior to make federally owned or managed lands available through appropriate authorizations for development. The Secretary of Defense is also empowered to identify military installation land for leasing to Qualifying Projects that support Department of Defense energy and infrastructure priorities.

DOE Site Selection
Coinciding with the EO, on July 24, 2025, the DOE formally announced the first four federal sites designated for AI data center and energy co-location opportunities. These selections directly reflect feedback received from the April 2025 RFI and represent the DOE’s initial implementation phase. The selected sites are:

1. Idaho National Laboratory
2. Oak Ridge Reservation
3. Paducah Gaseous Diffusion Plant
4. Savannah River Site

Site-specific solicitations are expected to be released in the coming months, with details on eligibility criteria, submission guidelines, and project scope to follow. Developer selection may occur as soon as Q4 2025. The DOE also indicated that additional sites are under evaluation, which may lead to additional solicitations in future rounds.

Developer and Investor Implications
This coordinated federal effort marks a pivotal opportunity for developers, energy providers, and infrastructure investors seeking to participate in the buildout of AI and energy projects through public-private partnerships. With data center development now elevated to the level of national infrastructure policy, federal agencies are aligning their efforts to streamline environmental reviews, accelerate permitting, and open federally owned or managed land for long-term strategic use. Early movers are likely to be best positioned to benefit from the first wave of solicitations and associated incentives.

At the same time, the Executive Order signals a potential shift in federal permitting norms—one that could usher in lasting regulatory changes affecting data center siting, utility coordination, and AI infrastructure investment. While the Order lays a clear policy foundation, many of its provisions will require further agency rulemaking and interagency collaboration before they are fully operational. This transitional phase offers a critical window for industry stakeholders to engage with federal regulators, help shape forthcoming implementation frameworks, and advocate for scalable, efficient, and resilient infrastructure policies.

However, developers and investors should proceed with strategic caution. The durability of contract structures, permitting approvals, and land use arrangements may be tested by political transitions or regulatory reinterpretations. Long-term project viability will likely hinge on careful compliance documentation, statutory defensibility, and contractual safeguards capable of withstanding evolving federal priorities.

Pillsbury Support
Pillsbury’s nationally recognized Energy & Infrastructure, Environmental & Natural Resources, and Data Centers teams are ready to assist clients as the DOE transitions from planning to procurement. We are prepared to help clients interpret the EO and DOE guidance, advise on public-private partnership structures, land use and permitting strategies, support client engagement with the DOE and other federal agencies, and provide strategic and legal support for drafting RFP responses, including compliance review, site feasibility analysis and proposal preparation.