In a major move to bolster US digital infrastructure, the White House issued an executive order on July 23, 2025 aimed at accelerating the federal permitting process for data centers and related infrastructure. The order is part of a broader strategy to support rapid deployment of artificial intelligence (AI) technologies and meet growing power demands.
What’s in the Order?
The executive order outlines a multi-agency effort to streamline and incentivize large-scale data center development, particularly those requiring more than 100 megawatts of energy to support AI workloads or synthetic data generation. Key components include:
- Federal Financial Support: Loans, grants, tax incentives, and offtake agreements will be made available to "qualifying projects,” either major data centers or the infrastructure needed to support them
- Faster Environmental Reviews: Agencies are instructed to begin identifying environmental review shortcuts within 10 days of the order, working with the Council on Environmental Quality
- Streamlined Permitting: The US Environmental Protection Agency and US Army Corps of Engineers are tasked with revising key regulations and evaluating new permit options to speed up the approval process for eligible projects
- Federal Land Access: The US Departments of Energy, Commerce, and the Interior will coordinate on siting projects on federal lands, with the US Department of Defense offering leases on military installations where appropriate
Why It Matters
This order builds on recent federal initiatives focused on AI, data infrastructure, and energy reform, including the AI Action Plan issued the same day. With data centers playing a central role in powering AI innovation, the executive order is expected to unlock faster project timelines and reduce regulatory roadblocks.
Additionally, natural gas is likely to be a key feedstock in powering these new centers. The Federal Energy Regulatory Commission has taken parallel steps to ease the path for new natural gas infrastructure, signaling strong federal alignment around energy and AI priorities.
For more context on the AI Action Plan and related regulatory shifts, check out our latest LawFlash on the executive order.