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Executive Summary
The United States stands at a pivotal juncture in the global technology race. Advanced data centers and dedicated computing infrastructure for Artificial Intelligence (AI) are emerging as critical enablers of national competitiveness, security, and innovation. While the private sector has rapidly expanded computing capacity for AI training and inference, bottlenecks to continued growth abound, from strained energy grids to cumbersome permitting processes. Without initiatives to expedite AI infrastructure projects domestically, hyperscale computing capacity risks moving offshore, undermining America’s leverage over compute governance while rate-limiting the diffusion of beneficial AI-enabled applications and R&D.
Federal lands offer a unique opportunity to expedite data center construction, strengthen security, and coordinate the strategic placement of vital computing resources. Federal agencies, including the Departments of Energy (DOE), Interior (DOI), and Commerce (DOC), possess legal authorities and management experience gained from other large-scale infrastructure projects — such as renewable energy developments — to guide and streamline the deployment of AI-oriented data centers in a similar manner.
Yet unlocking federal lands for AI infrastructure demands careful consideration. These specialized facilities require not only abundant and reliable energy supplies but also proximity to robust fiber optic networks, efficient cooling options, and minimal exposure to natural hazards. Equally important are concerns around workforce and talent pipelines, environmental sustainability, and harmonious integration with surrounding communities. Additionally, in light of the sensitive nature of AI workloads and research — including those touching on national security or cutting-edge R&D — security protocols must be more stringent than those for conventional data centers.
Public-private partnerships (PPPs) offer a mechanism to balance private-sector innovation with public-sector priorities, using tools such as competitive leasing and performance-based incentives to steer development on federal lands toward the public interest. However, the complexity intensifies in the context of federal lands for AI infrastructure. Higher power densities, tighter latency requirements, greater reliance on specialized talent, and advanced security protocols all raise the bar for where and how these facilities are sited and constructed.
This policy memo outlines the key considerations for leveraging federal lands to develop AI-centric computing hubs. It begins with an analysis of the legal and regulatory foundations that enable such endeavors, then explores how carefully structured PPPs can incentivize private investment while ensuring alignment with national goals. Subsequent sections will detail essential siting criteria, highlight potential candidate regions, discuss how to integrate lessons learned from renewable energy initiatives, and recommend criteria for environmental, security, and workforce considerations. Together, these insights map a course forward that marries private-sector capabilities with federal stewardship, ultimately enhancing America’s AI infrastructure, competitiveness, and national security.
