Jul 31, 2025
5-10 mins
What the US AI Action Plan Means for Data Centers and Telcos
On July 23, 2025, the White House released “Winning the Race: America’s AI Action Plan,” a sweeping policy framework designed to boost U.S. competitiveness, accelerate AI innovation, and modernize the digital backbone that supports it, namely, the nation’s data centers and telecom networks.
“America must continue to be the dominant force in artificial intelligence to promote prosperity and protect our economic and national security.” - The White House
With more than 90 policy actions spanning permitting reform, export strategy, and new procurement standards, the Action Plan isn’t just federal posturing. It’s a direct line to how AI will evolve in the U.S., and the pressure it will place on infrastructure. What does it really mean for data centers and telcos? We’ve reviewed the plan and pulled out five key takeaways that every data center operator and telecom provider should understand. These insights reveal where federal dollars, regulatory scrutiny and growth opportunities are headed and how you can stay ahead in the AI era.
Permitting Just Got a Whole Lot Faster
If you build or operate data centers, the White House just gave you a fast lane.
One of the key executive orders that is part of the plan is designed to “facilitate the rapid and efficient buildout of data center infrastructure.” The order aims to reduce red tape, unlock funding, and accelerate permitting for new and expanded facilities across the country.
So what does that actually mean for operators, developers, and telcos?
Qualifying Projects, which are now clearly defined, include data centers with a power load over 100 MW, energy infrastructure projects supporting data centers (like substations and pipelines), and manufacturing sites for semiconductors or networking gear. These projects may now be eligible for federal loans, grants, and tax incentives.
The executive order also designates these projects for FAST-41 expedited permitting, streamlining the complex environmental reviews that typically delay construction.
And in a major land-use shift, the government is directing agencies to open up federal land, brownfield sites, and even superfund sites for data center use, repurposing previously unused or contaminated sites for high-impact digital infrastructure.
According to the executive order fact sheet: “By streamlining permitting and providing financial support, the U.S. will accelerate the development of data centers and enable our global dominance in AI.”
The Biden-era executive order that required AI data centers on federal land to meet strict DEI and climate-related requirements was revoked. In its place, the new policy prioritizes flexibility and speed, a clear signal that Washington sees data centers as mission-critical to America’s technological leadership.
If you’re planning a large-scale AI data center, energy corridor, or semiconductor-adjacent facility, this executive order changes the game. You now have a path to cut through permitting delays, apply for federal incentives, and even build on previously restricted federal lands — all while aligning with national AI priorities.
The Grid Is About to Be Stress-Tested
The White House’s AI Action Plan doesn’t just call for more data centers; it calls for a dramatic surge in the energy required to run them. At the Winning the AI Race summit, the administration emphasized the need to double America’s electricity output to meet the demands of AI-driven infrastructure.
That push comes as U.S. grids face mounting pressure from energy-hungry GPUs and high-density compute loads. The Action Plan encourages companies to build their own power sources and prioritizes dispatchable options like gas, nuclear, and geothermal.
But critics warn the strategy sidesteps renewables.
“The plan is silent on the role of renewables… Conservation groups decried the impact of AI on energy and water resources, while some free market advocates praised the intent but questioned its feasibility.”
— Utility Dive, July 2025
While the overall impacts of this order will likely take years to materialize, it’s likely that operators will continue to explore renewables while managing the optics and long-term sustainability risks that come with some of the more scrutinized forms of power the plan mentions.
The plan also prioritizes rapid permitting for supporting infrastructure like substations, pipelines, and transmission lines, all now considered “Covered Components” in federal terminology. By fast-tracking these projects, the administration hopes to accelerate buildouts that would otherwise be stalled by environmental review timelines or grid interconnection delays.
For data center owners and operators, this is more than policy. It’s a signal that energy planning has become inseparable from growth planning. Facilities that can secure stable, scalable power, whether through utility partnerships, private generation, or location strategy, will be best positioned to serve the next wave of AI clients.
The Compliance Bar Just Got Higher
AI might be a tech play, but the new federal rules are deeply political.
Among the most debated elements of the Action Plan is an executive order banning federal procurement of AI systems that display “ideological bias.” Translated: no LLMs trained with DEI, climate or misinformation content.
“This Executive Order directs federal agencies to only procure large language models (LLMs) that adhere to 'Unbiased AI Principles, ' defined in part as 'neutral, nonpartisan tools that do not manipulate responses in favor of ideological dogmas such as DEI, to quote the” AI Executive Order.
The implications for infrastructure providers are real. As the federal government demands neutral, auditable, and secure systems, companies that host or support AI workloads may be asked to prove compliance, implement risk frameworks or even restrict model access at the infrastructure level.
This also plays into national security mandates, with new vetting for foreign models, export controls, and secure hosting environments for sensitive workloads.
Faster Permitting, Higher Stakes
The AI Action Plan promises speed, but not without friction. One provision calls for looser Clean Water Act permitting, aiming to fast-track construction of pipelines, substations and data centers by removing certain federal review requirements.
“Big Tech asked for looser Clean Water Act permitting. Trump wants to give it to them.”
— WIRED, July 2025
Backed by tech leaders like Meta and Google, the move is intended to clear development bottlenecks. But it’s also raising alarms among environmental groups, who warn of potential risks to wetlands, water quality, and local ecosystems.
For data center and telecom operators, this is a double-edged sword. Permitting may get faster, but public and regulatory scrutiny will rise in parallel. Choosing sites wisely and proactively investing in ESG transparency will be key to maintaining credibility as the pressure to build intensifies.
Infrastructure Is Now an Export Strategy
The AI Action Plan isn’t just about domestic acceleration; it’s about international dominance. A new American AI Exports Program will bundle U.S.-built chips, models, software, and cloud infrastructure for deployment across allied nations, with oversight from the Departments of State and Commerce.
“The full AI technology stack, hardware, models, software, applications, and standards, to all countries willing to join America’s AI alliance.” - Steptoe & Johnson
For data center operators and telcos, this opens a strategic opportunity. Providers with overseas facilities or clients who serve cross-border markets may be able to position themselves as certified infrastructure partners within this global rollout. But participation will depend on meeting national standards for security, transparency, and supply chain compliance.
Export-readiness is no longer just a federal contractor concern. It’s an emerging differentiator in the AI infrastructure race.
This is more than a policy shift; it’s a blueprint for how the U.S. intends to win the AI race. For infrastructure leaders, the message is clear: those who plan early, build fast, and align with national priorities will set the pace. From permitting advantages to power strategy, ESG credibility to global readiness, the AI Action Plan is redefining what it means to lead in digital infrastructure.
About the Author
Chanyu Kuo
Director of Marketing at Inflect
Chanyu is a creative and data-driven marketing leader with over 10 years of experience, especially in the tech and cloud industry, helping businesses establish strong digital presence, drive growth, and stand out from the competition. Chanyu holds an MS in Marketing from the University of Strathclyde and specializes in effective content marketing, lead generation, and strategic digital growth in the digital infrastructure space.
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