President Trump pushes for deregulation and increasing energy sources for AI development

President Donald Trump recommends easing data center regulations and increasing their energy sources for artificial intelligence (AI) development. He proposed pulling federal funding for states that enforce what he deems excessive regulations on new technologies.

According to the White House, the proposed new strategies would give the country a competitive edge over China. The sweeping, 90-plus page America’s AI Action Plan, aimed at cementing the United States’ leadership in artificial intelligence through an aggressive, infrastructure-first strategy focused on innovation, deregulation, and global competitiveness

President Trump described his action plan, the most important policy yet for AI technology

The Trump administration insists that the AI plan will solidify America’s role in shaping global artificial intelligence frameworks and prevent rival nations like China from closing the technology gap. It outlines measures to simplify project approvals and relax environmental regulations to speed up artificial intelligence development. Moreover, it also seeks to dismantle what Trump has criticized as an overly restrictive AI policy framework under Biden.

White House AI czar David Sacks even commented on the policies, “To win the AI race, the US must lead in innovation, infrastructure, and global partnerships. At the same time, we must center American workers and avoid Orwellian uses of artificial intelligence. This Action Plan provides a roadmap for doing that.”

President Donald Trump has called the action plan the most important policy move yet for a technology poised to transform the global economy. On Wednesday, the president will implement parts of his artificial intelligence strategy by signing executive orders, one of which will task the US International Development Finance Corporation and the Export-Import Bank to promote global adoption of US technology.

The president will also issue an order mandating that any large language models used by the government must uphold standards of neutrality and impartiality. 

Secretary of State Marco Rubio also spoke on the plan, saying that well-defined policy objectives are essential for guiding federal efforts to maintain America’s technological leadership and global influence. 

Shortly after his inauguration, Trump overturned a 2023 directive from Biden that required rigorous safety assessments and transparency reports from leading tech companies. He then directed Sacks to redraw a course for artificial intelligence regulation in six months. David Sacks, Sriram Krishnan, and Michael Kratsios spent months talking to top experts in the tech field to get their input and feedback on the industry.

Trump wants the grid to include more nuclear and geothermal sources

The plan also includes efforts to modernize the existing energy grid and institute measures to enhance the efficiency of the transmission system. 

It suggests reliable and dispatchable resources, such as nuclear and advanced geothermal plants, should be given priority access to the grid to aid increased demand. Bloomberg NEF estimates that by 2035, data centers will be using 8.6% of the electricity in the United States, up from the current 3.5%.

Trump administration officials say that freeing coal, natural gas, and nuclear power from years of being bound is essential to meet a growing demand and that if nothing is done, there could be power shortages. The Energy Department has resorted to emergency measures to keep two power plants from shutting down, and has even raised the possibility of further federal intervention.

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