Key Takeaways
• The Department of Energy has identified 16 federal sites, including national laboratories and nuclear facilities, for potential AI data center and power plant construction.
• President Trump supports public-private partnerships, including a $20 billion DAMAC investment and a $100 billion TSMC chip manufacturing expansion.
• A proposed 25% or higher tariff on imported semiconductor chips aims to boost domestic production but could disrupt global tech supply chains.
• The administration plans to ban Chinese ownership of U.S. data centers, citing national security concerns.
• Despite rising energy demands from AI infrastructure, sustainability strategies are largely absent from current plans.
The Department of Energy (DOE) has drafted a plan to enable construction of large-scale AI data centers and supporting power infrastructure on federal land. A memo outlines 16 potential locations nationwide, many of which are currently high-security or nuclear-associated facilities.
• Pantex Plant (Amarillo, Texas)
• Oak Ridge, Los Alamos, and Sandia National Laboratories
• Princeton Plasma Physics Lab and Brookhaven National Laboratory
These sites may also be used for new energy generation, including nuclear reactors, enhanced geothermal systems, and carbon capture facilities. Developers are expected to receive a formal request for feedback from the DOE in the coming days.
“Historically, the perspective is that anything involving government land just adds complexity… If you want a data center [at Idaho National Lab] by the end of 2027 — where is the power going to come from?”— Peter Freed, former Director of Energy Strategy at Meta
Strategic Public-Private Investments Target Domestic Infrastructure
The Trump administration is also working with private partners to scale AI infrastructure. Major commitments include:
• A $20 billion pledge from DAMAC Properties via EDGNEX Data Centers
• A $100 billion plan with TSMC to construct five semiconductor plants in the U.S.
• Trump family involvement in American Data Centers Inc. (ADC) through Dominari Holdings
Dominari holds a 32% stake in ADC, and investor confidence surged following the announcement, with shares rising over 1,100% in early 2025.
“Their guidance is expected to be instrumental as we continue to seek attractive investment opportunities, particularly in the rapidly evolving AI and data centre sector.”
Semiconductor Tariffs Reshape Global Supply Chain
A major policy shift under Trump involves imposing 25% or higher tariffs on all imported semiconductors. The objective is to encourage U.S.-based manufacturing and reduce dependence on Asian chipmakers like NVIDIA and TSMC.
“We want to give them a little bit of a chance… We want to keep it in this country. China is a competitor, others are competitors.”— President Donald Trump
TSMC’s U.S. expansion is a strategic hedge against tariff risk and a response to rising geopolitical tensions in global tech.
National Security Focus: Banning Chinese Investment
As part of a broader security strategy, the administration plans to ban Chinese ownership or investment in U.S. data center infrastructure. While not yet codified, the move follows longstanding concerns about surveillance, espionage, and strategic vulnerabilities in critical infrastructure.
These concerns are also consistent with past actions by both Trump and Biden administrations to restrict Chinese involvement in U.S. telecom and semiconductor sectors.
Sustainability Absent in Current Agenda
Despite the massive energy needs of AI infrastructure, the DOE memo lacks a clear emphasis on emissions reduction or sustainable practices. The memo mentions nuclear and geothermal energy, but excludes solar and wind, which are central to most clean energy roadmaps.
“The global clean energy boom — worth US$2tn last year alone and rising fast — is the economic growth deal of the decade… Ignoring it only sends all that vast wealth to competitor economies.”— Simon Stiell, Executive Secretary, UN Climate Change
As AI workloads increase, pressure is expected to mount for a more climate-conscious strategy in both public and private sector efforts.
The Trump administration’s initiative reflects a multi-dimensional strategy to secure U.S. leadership in AI:
• Rapid site development on federal land
• Realignment of chip supply chains through tariffs
• Investment-heavy partnerships with global firms
• Targeted foreign ownership restrictions
The next critical step will involve industry feedback to the DOE and the mobilization of resources for deployment by 2027. The approach may yield short-term technological gains, but sustainability, regulatory speed, and geopolitical risk will determine its long-term viability.
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