ARTICLE
22 January 2025

Advancing U.S. Leadership In AI Infrastructure: A Focus On Geothermal Energy

FH
Foley Hoag LLP

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On January 14, 2025, President Biden signed an Executive Order to advance the United States' leadership in artificial intelligence (AI) infrastructure. This comprehensive directive underscores the critical role of AI...
United States Energy and Natural Resources

On January 14, 2025, President Biden signed an Executive Order to advance the United States' leadership in artificial intelligence (AI) infrastructure. This comprehensive directive underscores the critical role of AI in national security and economic competitiveness while recognizing and attempting to address the daunting challenge of developing the data center infrastructure necessary to power the growing demand for AI. The order mandates a collaborative effort between federal agencies and the private sector to build AI data centers and ensure the necessary energy infrastructure while maintaining low electricity costs for consumers and prioritizing the development of new, additional clean electricity supply to power those data centers.

What's most interesting from an environmental and energy perspective is the extent to which the order centers the use of renewable energy to power AI in its provisions. The emphasis given to the use of geothermal energy to power AI data centers is particularly notable and reflects the growing awareness of the simply massive potential of geothermal energy – and particularly a variety of new technologies broadly known as advanced or enhanced geothermal. To give just one example, a recent report by the International Energy Agency states that

With continued technology improvements and reductions in project costs, geothermal could meet up to 15% of global electricity demand growth to 2050.


The U.S. Department of Energy also recently published a report entitled Next-Generation Geothermal Power Commercial Liftoff, which made the following compelling statement regarding geothermal's potential:

In a world where the US grid will need 700-900 GW of additional clean firm capacity by 2050, next-gen geothermal could provide 90 GW by 2050, and up to 300 GW depending on the development of storage capabilities and other emerging technologies.


The Executive Order reflects this growing acknowledgment of the importance of geothermal energy as part of our clean energy future. Among the key provisions in the Executive Order addressing the use of geothermal energy to power AI data centers are the following:

  • Priority Geothermal Zones (PGZs). One of the key requirements in the Executive Order is the designation of Priority Geothermal Zones (PGZs). By March 15, 2025, the Secretary of the Interior, in consultation with the Secretary of Energy, is tasked with designating at least five regions as PGZs. These zones will be selected based on their potential for geothermal power generation, including hydrothermal and next-generation geothermal power and thermal storage.
  • Programmatic Environmental Review. Within 60 days of the order, the Secretary of the Interior must undertake a programmatic environmental review of the environmental impacts and associated mitigations involved with the construction and operation of geothermal power plants. This review is crucial for streamlining the permitting process and ensuring that geothermal projects can proceed without unnecessary delays.
  • Permitting and Categorical Exclusions. The Secretary of the Interior is also directed to prioritize the expeditious permitting of geothermal projects, especially in PGZs. This includes considering existing categorical exclusions listed in the National Environmental Policy Act (NEPA) procedures of other agencies that could apply to geothermal energy development. The Secretary will propose adopting appropriate categorical exclusions after consultation with relevant agencies and considering public comments to streamline the permitting process for geothermal projects.
  • Technical Assistance and Leasing. Finally, within 180 days, the Secretary of the Interior will establish a program dedicated to providing technical assistance and streamlining the direct-use leasing of geothermal projects on Bureau of Land Management (BLM) lands, including lands subject to mining claims or under oil and gas leases. This initiative aims to make it easier for developers to access federal lands for geothermal projects, thereby accelerating the deployment of this clean energy technology.
  • Coordination and Clarification of Procedures. The Secretary of Defense, the Secretary of the Interior, and the Secretary of Energy will coordinate to determine and clarify procedures for executing leases or subleases for developing or expanding clean energy generation resources, including geothermal energy, on lands under their jurisdiction. This coordination is essential for ensuring that geothermal projects proceed smoothly and efficiently.
  • Environmental and Species Protection. The Secretary of Defense and the Secretary of Energy will consult with the United States Fish and Wildlife Service (USFWS) to ensure that geothermal projects do not jeopardize endangered species or habitats. This consultation process is vital for balancing geothermal energy development with biodiversity protection.

The Executive Order is important for many reasons, but the emphasis it places on the use of renewable energy to power AI, and in particular, its specific provisions encouraging the use of geothermal energy in this space, may be among its most important features. Given the imminent change in administration, the provisions regarding streamlining the environmental review of geothermal resources for powering AI infrastructure are also noteworthy. Indeed, Bloomberg (subscription required) reported Thursday that the Executive Order has already piqued GOP interest due to its provisions requiring such streamlined procedures. Time will tell, but if President Trump leaves these provisions in place, and they can truly attract bipartisan support, the Executive Order might not just facilitate the development of AI infrastructure, it may also give a boost to a potentially breakthrough clean energy technology – vast resources of clean geothermal energy.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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