Contributed by Joe Brettell
The Biden Administration’s 11th-hour executive order aimed at accelerating the development of AI infrastructure, underscores the growing recognition of artificial intelligence as a transformative force in global geopolitics and domestic economies. This order is a strong opening gambit in addressing the complex interplay between AI, national security, and the energy sector. However, with President Biden’s tenure nearing its end and President-Elect Trump poised to take office, the durability and adaptability of this policy are worth examining.
To be clear, AI is not merely a technological innovation or convenience; it is a strategic imperative. The national security implications of AI development are profound, echoing the arms race that fueled the Space Program in the 1960s or the defense buildup of the 1980s. The executive order appropriately addresses these stakes, emphasizing the need for robust, secure, and scalable infrastructure to maintain America’s competitive edge. Yet, while the directive admirably prioritizes national security, its broader goals, particularly around clean energy, may face an uncertain future under the Trump Administration, whose policy priorities center largely around expanding markets for fossil fuel industries.
However, recent interest from oil and gas majors like Chevron and Exxon in helping alleviate the massive energy demands of AI technology could provide an interesting way for the new Administration to utilize an “all of the above” approach in alleviating energy demands – particularly as emergent technologies like nuclear and geothermal evolve.
Another element of the order that should receive widespread support is the attempt to address regulatory barriers and the energy cost burden on consumers that AI infrastructure will bring. It’s been well-documented that a thicket of regulations often slow the deployment of essential infrastructure, particularly in the energy sector. Streamlining these regulations could expedite the construction of AI-supportive systems such as high-capacity transmission lines – an element specifically addressed in the order. In the coming months, there’s an excellent opportunity to take this mindset further, incentivizing public-private partnerships between power providers and data center manufacturers that stimulate innovation and economic development while sharing the financial risks associated with these large-scale projects. The considerable costs associated with building and maintaining these facilities, currently called for in the order might be a good place to start.
However, these efforts must also contend with a significant and growing challenge: utility capital costs. A recent study by Berkeley Labs highlights that rising household energy bills are driven not only by soaring demand but also by utility capital expenditures. As AI infrastructure expands, this trend is likely to intensify. Moreover, climate-driven storms, which have wreaked havoc from Los Angeles to Asheville, North Carolina, are expected to continue straining the grid- necessitating costly repairs and upgrades, which will be borne by already stretched households. Without careful planning, these financial burdens risk being passed on to already struggling households, exacerbating economic disparities.
Despite these challenges, the Biden Administration’s efforts lay a solid foundation for setting a national AI infrastructure policy. This approach aligns with historical precedents of federal support for emerging technologies, as chronicled in Jim Smith’s seminal book, Chip War. Smith documents how strategic investments and public-private collaborations were instrumental in establishing the United States as a leader in semiconductor manufacturing. Similarly, a well-coordinated push for AI infrastructure could solidify America’s position in this next technological frontier.
Critics might be tempted to dismiss these initiatives as a last-gasp effort of an exiting President or merely partisan posturing, but doing so would be shortsighted. Instead, President Trump and supportive governors should work to fine-tune this policy framework, ensuring that critical AI infrastructure can be fast-tracked while simultaneously modernizing the nation’s grid. This dual focus would not only shore up our national security but also supercharge AI and energy investment.
Achieving this balance would also provide an inadvertent but crucial opportunity for bipartisan cooperation. In an era marked by political polarization, a shared commitment to enhancing America’s technological and energy resilience could serve as a unifying goal. Moreover, the economic benefits of such an approach—ranging from job creation in construction and tech industries to increased energy efficiency—could ripple across multiple sectors, offering a much-needed boost to the domestic economy.
While its future is uncertain, the Biden Administration’s executive order on AI infrastructure represents a commendable first step in addressing the intersecting challenges of technological innovation, national security, and energy sustainability. However, its long-term success will depend on the willingness of the new President and his Administration to adapt and expand upon this framework, ensuring that it remains relevant and resilient under changing political leadership. By reducing regulatory hurdles, fostering public-private partnerships, and mitigating the impact on consumers, this initiative can set the stage for a more secure, efficient, and equitable AI-driven future. In doing so, it would not only strengthen America’s global standing but also provide tangible benefits to its citizens, proving that even in a divided political landscape, meaningful progress is possible.
About the author
Joe Brettell is a former Congressional spokesman and currently a communications consultant, based in Houston.
Read the full article here: President Biden’s AI executive order is a good foundation – here’s how President Trump can make it better
