Energy Department Picks Federal Sites for AI Data Center Development
The Trump administration’s push to accelerate AI deployment begins to materialize
WASHINGTON, August 4, 2025 – The U.S. Department of Energy selected four federally owned sites for the development of AI-focused data centers and supporting energy infrastructure following an executive order to accelerate deployment.
The locations chosen were Idaho National Laboratory, Oak Ridge Reservation in Tennessee, the Paducah Gaseous Diffusion Plant in Kentucky, and the Savannah River Site in South Carolina, leveraging existing government-owned land and energy resources to accelerate AI infrastructure deployment.
U.S. Energy Secretary Chris Wright said, “These sites are uniquely positioned to host data centers as well as power generation to bolster grid reliability, strengthen our national security, and reduce energy costs,” in a release.
While the effort to unlock federal land for data center use began under former President Joe Biden, the Trump administration has sought to fast-track the process.
The DoE's announcement follows an executive order entitled Accelerating Federal Permitting of Data Center Infrastructure, issued by President Donald Trump on July 23, which streamlined the environmental review and permitting process for data center projects and revoked clean energy conditions for AI infrastructure established by Biden.
The four selected sites were picked from a list released by the Department of Energy in April of 16 federally owned locations identified for their potential to host data centers and their available associated power resources.
At Idaho National Laboratory, the Department of Energy owns about 62,000 acres of an 890-square-mile site that includes four operational nuclear reactors and advanced integrated energy systems.
The Paducah Gaseous Diffusion Plant in Kentucky – a 3,500-acre nuclear production site with 19 miles of road, nine miles of railroad tracks, and close proximity to a river – was positioned to deliver up to 3 gigawatts of power and supply 30 million gallons of water per day, fulfilling the high energy demands of AI infrastructure.
Oak Ridge National Laboratory has local power resources that include hydro, nuclear, and fossil fuels and contains about 100 acres suitable for near-term development. Located about five miles from another proposed small modular reactor site, this location provides a future opportunity to capitalize on regional nuclear infrastructure.
Finally, the Savannah River Site was home to a 310-square-mile site operated by the National Nuclear Security Administration to supply and process tritium for nuclear weapons.
As the four selected sites are to be developed in partnership with the private sector, the Department of Energy was working on formal solicitations that outline the scope, eligibility, and application process for private partners.
With these requirements expected in the coming months, the Department of Energy will likely unlock further land for AI, chipmaking, and other energy projects. The Department of Defense was also currently reviewing its land holdings for potential use in AI, semiconductor, and power infrastructure projects.
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