The U.S. Department of Energy is advancing a major initiative to grow data center infrastructure on federal land—an effort that aligns with the growing demand for AI capabilities and energy innovation. Sixteen potential sites have been identified across the country, including Georgia’s Savannah River Site, with a focus on streamlining development through existing infrastructure and expedited permitting for energy sources like nuclear.
This move builds on momentum from both the current and previous administrations to accelerate energy production and support the expanding footprint of AI and data center projects. The DOE also released a request for information exploring how federal land could be used for AI infrastructure—reflecting the strategic importance of AI as a national priority.
The surge in data center construction began with the rise of generative AI, but projects continue to face headwinds due to their heavy energy and water demands. While investor interest remains strong, some developers—including major players like Microsoft—have recently signaled caution amid concerns of overbuilding.
This federal initiative represents a key intersection of AI growth, energy strategy, and real estate opportunity—one that industrial developers, investors, and end-users should watch closely.