In a move to strengthen the US's position in the global AI landscape, President Joe Biden has issued an executive order that enables private sector AI companies to lease federal sites owned by the Department of Defense and Department of Energy to build AI data centers. This initiative aims to reduce the country's dependence on other nations for AI tools and infrastructure, while also promoting the use of renewable energy.

Under the executive order, companies that build data centers on these federal sites will be required to bring online sufficient clean energy resources to match the electricity needed to power the data centers. Notably, this is not a grant program, and AI companies will need to bear the full cost of building, operating, and maintaining these data centers.

The White House has emphasized that this order is designed to secure the US's global leadership in AI, ensuring that domestic companies have access to the necessary resources and infrastructure to drive innovation and growth. To facilitate the process, the Departments of Defense and Energy will receive the necessary resources to inspect and approve bids for federal sites quickly and efficiently.

The focus on renewable energy is particularly significant, given the growing power demands of data centers. Currently, data centers consume around 4% of the US's total power, a figure expected to increase to 9% by the end of the decade, according to the Electric Power Research Institute. Moreover, data center power demand is projected to double over the next five years, as reported by JLL.

This executive order comes on the heels of the Biden Administration's announcement of new rules and guidelines for AI chip exports, which imposed further restrictions on countries like China and Russia, while also introducing a 50,000 chip quota for the majority of the rest of the world. The timing of these moves is noteworthy, given that President-elect Donald Trump is set to take office in just a week and is expected to reverse several Biden administration policies.

Industry experts are closely watching the implications of this executive order, which could have a profound impact on the US AI industry's growth and competitiveness. While the focus on renewable energy is a welcome development, the long-term sustainability of these initiatives remains uncertain, given the potential for policy reversals under the incoming administration.

As the US continues to navigate the complex landscape of AI development and deployment, this executive order serves as a significant step towards securing the country's position as a global leader in AI innovation. However, the true test of its effectiveness will depend on the ability of the US AI industry to adapt and thrive in the face of shifting policy landscapes and intensifying global competition.