Infrastructure & City Planning Weekly AI News
July 21 - July 30, 2025This week, the U.S. government unveiled its AI Action Plan, a sweeping strategy to boost artificial intelligence development. The plan’s infrastructure pillar focuses on removing barriers to building data centers and energy projects. Here’s a breakdown of key actions and reactions:
Permitting Reforms The plan introduces categorical exclusions under the National Environmental Policy Act (NEPA) to bypass detailed environmental reviews for data centers that don’t significantly harm the environment. It also expands the FAST-41 program, which coordinates federal agencies to speed up permitting for large projects. For example, data centers with over $500 million in investments or those adding more than 100MW of electricity could qualify for faster reviews. Additionally, the plan proposes nationwide Clean Water Act permits to simplify approvals for data center construction sites.
Energy Strategies To address rising energy needs, the plan encourages on-site power generation, particularly using natural gas plants. Companies could build these plants to power their data centers and sell excess energy back to the grid. This approach aims to reduce reliance on strained public utilities but faces criticism for favoring fossil fuels over renewable energy.
Federal Land Use The government plans to make federal lands available for data center and power infrastructure projects. Agencies like the Department of Interior will identify suitable sites, potentially accelerating development in remote areas.
Cybersecurity Measures The plan establishes an AI Information Sharing and Analysis Center to help critical infrastructure sectors share threat intelligence. It also emphasizes building high-security data centers for military and intelligence use, ensuring they’re free from foreign adversary technology.
International Diplomacy The U.S. aims to export its AI technology stack to allies while restricting access to adversaries like China. This includes hardware, software, and standards that align with American values. The plan also seeks to set global AI standards through diplomatic efforts.
Reactions and Criticisms The Data Center Coalition praised the plan for improving permitting and workforce development. However, environmental groups and lawmakers like Sen. Ed Markey criticized it for prioritizing fossil fuels and deregulation over climate goals. The plan’s focus on ideologically neutral AI systems and revised NIST guidelines removing DEI references also sparked debate.
Overall, the plan reflects a deregulatory approach to AI infrastructure, balancing rapid development with national security and global influence. While it aims to position the U.S. as a leader in AI, its environmental and social impacts remain contentious.