Federal sites in the U.S. are being harnessed for accelerated construction of AI data centers and energy developments by the Department of Energy.
U.S. Department of Energy Invites Private Sector to Develop AI Datacenters and Energy Projects at Four Federal Sites
The U.S. Department of Energy (DOE) has announced the selection of four federal sites for the colocation of AI-focused datacenters and energy generation projects. The chosen sites include Idaho National Laboratory, Oak Ridge Reservation, Paducah Gaseous Diffusion Plant, and Savannah River Site.
The initiative aims to leverage DOE land assets to accelerate AI and energy leadership in the U.S., enhancing grid reliability, national security, and reducing energy costs by linking datacenters directly with energy generation. The projects will primarily focus on clean and reliable sources such as nuclear, natural gas, and hydroelectric power.
Key specifics of the invitation include projects that integrate both data centers and power generation on-site or very nearby, to reduce buildout time and costs by avoiding extended grid transmission infrastructure. Applicants are expected to bring at least a $500 million investment and utilize more than 100 MW of electricity for their projects.
The Oak Ridge site, home to the Oak Ridge National Laboratory and the Frontier exascale supercomputer, boasts existing high-voltage transmission (500KV) connectivity and proximity to the proposed TVA Clinch River Small Modular Reactor (SMR) with up to 800 MW capacity. This presents opportunities to leverage regional nuclear infrastructure. For the Idaho National Laboratory site, prior extensive site characterization and permitting activities for new nuclear reactors have already been done, facilitating quicker project development.
The selection of these sites follows executive orders issued by President Trump to make federal land available for AI processing capability needs. The exact timeline for final partner selection was not explicitly stated, but the DOE’s fast-moving regulatory groundwork and the July 2025 announcements position partner selection likely within the latter half of 2025 or early 2026.
Industry partnerships like the collaboration between nuclear power developer Oklo and data center infrastructure expert Vertiv, aimed at advancing power and cooling solutions explicitly designed for colocated hyperscale data centers on clean energy sites, underscore a growing ecosystem supporting the development of these colocated projects.
| Aspect | Details | |-------------------------------|----------------------------------------------------------------------------------------------------| | Locations | Idaho National Laboratory, Oak Ridge Reservation, Paducah Gaseous Diffusion Plant, Savannah River Site | | Project scope | AI-focused data centers colocated with energy generation infrastructure | | Investment & power usage | Minimum $500 million investment; >100 MW power consumption | | Energy infrastructure | Nuclear (including SMRs), hydro, natural gas potential; onsite generation to support direct power delivery | | Existing infrastructure | Oak Ridge: 500KV transmission, proximity to TVA SMR; Idaho: completed site characterization for nuclear reactors | | Timeline | Announcement of selected sites July 2025; expedited permitting and environmental review instructed by executive order; partner selection timeline ongoing but accelerated | | Industry engagement | Collaborations such as Oklo and Vertiv advancing nuclear-based power and cooling for these centers |
Stay tuned for more detailed information about the application process and timelines as they become available. Monitor further DOE releases and industry announcements for updates on this exciting development.
- The U.S. Department of Energy's (DOE) initiative, focused on AI and energy leadership, inherently involves the intersection of technology and finance, as potential partners are expected to invest at least $500 million.
- In the context of the collaboration between nuclear power developer Oklo and data center infrastructure expert Vertiv, the aim is to advance power and cooling solutions specifically designed for colocated hyperscale data centers on clean energy sites, indicating a significant role for hardware and energy in these projects.
- With the selection of four federal sites, including Oak Ridge Reservation, and the existing high-voltage transmission (500KV) connectivity there, there exists a potential for enhancing security within the data-and-cloud-computing industry by linking datacenters directly with energy generation.
- The Oak Ridge site's proximity to the proposed TVA Clinch River Small Modular Reactor (SMR) with up to 800 MW capacity presents opportunities to leverage regional nuclear infrastructure, hinting at the importance of the energy sector in maintaining grid reliability and national security.
