- The Trump administration’s AI Action Plan includes proposals to fast-track environmental permitting for data centers and energy projects.
- The plan encourages on-site power generation—mainly through natural gas—to meet rising energy demands.
- Critics warn the strategy undermines environmental protections and benefits fossil fuels over renewables.
A Fast Track For AI Infrastructure
President Donald Trump unveiled a sweeping AI Action Plan this week, reports Bisnow. A central focus of the plan is removing regulatory barriers for data center development. The strategy, reinforced by an executive order, seeks to accelerate AI infrastructure growth by easing environmental reviews and promoting on-site power generation.
The plan includes adding data centers to FAST-41, a federal program designed to expedite industrial permitting. It also calls for exemptions from certain requirements under the National Environmental Policy Act and other major environmental statutes.
Becoming Their Own Utilities
Facing growing grid constraints, the administration is also promoting self-powered data center campuses. Trump announced that companies would be encouraged to build natural gas-fired plants to power their own facilities—potentially selling surplus energy back to the grid.
“You are essentially going to become your own utility,” Trump told tech leaders at a DC summit.
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Industry Cheers, Critics Push Back
The Data Center Coalition praised the plan as a “major step forward,” citing improvements in permitting, workforce development, and power access.
But environmental groups and Democratic lawmakers voiced strong opposition. Sen. Ed Markey of Massachusetts criticized the plan for prioritizing fossil fuels and deregulation over public health and climate goals. “Our environment doesn’t have to be a sacrificial lamb on the altar of innovation,” he said.
Why It Matters
Data centers are the backbone of AI advancement, but their energy needs are surging. With utilities struggling to keep up, the administration’s pivot toward deregulation and fossil fuels is poised to reshape how—and where—data infrastructure gets built in the US.
What’s Next
Although the AI Action Plan is nonbinding, its key provisions have been codified through executive order. Expect further regulatory rollbacks and increased investment in private power generation at data centers as developers race to expand US AI capacity.
