The Trump administration is actively pursuing policies to boost domestic energy production, specifically fossil fuels, to meet the escalating power demands of artificial intelligence (AI) data centers. David Sacks, a key advisor to the President on AI and cryptocurrency, recently highlighted this strategic imperative, stating that enabling new data centers necessitates increased power generation. This approach aligns with a broader executive order and the President's policy aimed at facilitating energy extraction.
Sacks emphasized the administration's stance on social media, noting, > "In order to enable these new data centers... you have to build more power generation
but that's the whole point of the Executive Order and that's the whole point of @POTUS' policy around making it easier to Drill, Baby, Drill." This statement underscores a direct link between the "Drill, Baby, Drill" energy policy and the rapid expansion of AI infrastructure.
The push for increased energy supply comes as AI development necessitates massive computational power, primarily housed in energy-intensive data centers. Reports indicate ambitious projects, such as the four-year, $500 billion "Stargate" initiative, are underway to build these facilities. The administration views this energy-intensive buildout as crucial for the United States to maintain its lead in the global AI race against competitors like China.
To support this growth, President Trump signed an executive order aimed at expanding domestic coal production and utilization, and his administration has signaled a broader intent to unleash oil and gas production. This policy direction is expected to increase drilling permits for fossil fuel production, a shift from previous administrations' focus on renewable energy. While data center operators often strive for net-zero targets, the administration's emphasis suggests a prioritization of readily available fossil fuel sources.
Major financial players are also aligning with this strategy. Blackstone, for instance, announced plans to invest $25 billion in American data centers and energy generation, particularly in regions like northeast Pennsylvania, to drive AI innovation. Jon Gray, Blackstone's President and COO, echoed the sentiment, stating that "We have to drill, baby, drill, and we have to build, baby, build" to address power as a limiting factor for the AI economy.
David Sacks, serving as the White House's AI and Crypto Czar, is instrumental in shaping this policy, which seeks to streamline permitting and boost domestic energy supply for data centers. The administration's AI Action Plan includes executive actions to support this goal, aiming to ensure the tech industry has the electricity needed for its massive expansion. This strategic focus highlights the critical intersection of energy policy and technological advancement in the current administration's agenda.