Accelerating Federal Permitting of Data Center Infrastructure

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AcceleratingFederalPermitting ofDataCenterInfrastructure

ExecutiveOrder#14318

DateIssued:July23,2025

Topic:AI,Energy,EnvironmentalJustice,Technology

WHATDOESTHISEXECUTIVEORDERDO?

Thisexecutiveorderdirectsfederalagenciestoofferloans,grants,tax incentives,andothersupportfor“QualifyingProjects,”suchasdatacenters above$500millioninvestment,greaterthan100megawatts(MW)electric load,nationalsecurityrelevance,orspecialdesignation.

TheorderrevokesExecutiveOrder14141(January14,2025)onartificial intelligence(AI)infrastructure,signalingashifttowardamoreaggressive andexpeditedfederalstrategyforAIdevelopment.

Theorderspeedsupenvironmentalreviewsanddirectsagenciestoadopt orcreatenewNationalEnvironmentalPolicyAct(NEPA)categorical exclusionstofast-trackinfrastructuredevelopment,addefficiencyand transparencythroughFAST41,andenableapublictrackingpermitting dashboardwithexpeditedreviewschedules.Federalfinancialassistance representinglessthan50%ofprojectcostsispresumedexemptfrommajor NEPAreview.

Theorderrequiresregulatorymodificationsunderkeyenvironmentallaws (CleanAirAct,CleanWaterAct,theComprehensiveEnvironmental Response,Compensation,andLiabilityAct)andrelevantagenciesto expeditiouslyidentifyBrownfieldSitesandSuperfundSites,including permittingonFederalandnon-FederallandsforusebyQualifyingProjects.

Additionally,theorderspeedsupwaterandwildlifepermitapprovalsby launchinga10-yearplantostreamlinereviewsforcommonconstruction projectsatdesignatedsites.

Within10daysoftheorder,federalagenciesmustidentifyandsubmit theirexistingNEPAcategoricalexclusionstotheCouncilonEnvironmental QualitytohelpexpeditetheconstructionofQualifyingProjects.

Within30daysofaprojectbeingidentifiedbyarelevantagency,the ExecutiveDirectoroftheFederalPermittingImprovementSteeringCouncil maydesignateitasatransparencyprojectandpublishitontheFAST-41 PermittingDashboard,includingascheduleforexpeditedreview.

Within180daysoftheorder:

TheAdministratoroftheEnvironmentalProtectionAgency(EPA)must issueguidancetoaccelerateenvironmentalreviewsforreusing BrownfieldandSuperfundsites,whilealsoupdatingpermitting regulationsunderkeyenvironmentallaws.

Inthesametimeframe,theArmymustreviewpermitsundertheClean WaterActandRiversandHarborsActtodeterminewhethernew nationwidepermitsareneeded.Additionally,theDepartmentsofthe InteriorandCommercewillconductprogrammaticconsultations undertheEndangeredSpeciesActtostreamlinereviewsforrecurring constructionactivitiestiedtoQualifyingProjects. HOWWILLTHISEXECUTIVEORDERBEENFORCED?

HOWDOESTHISIMPACTBLACKCOMMUNITIES?

BrownfieldsandSuperfundsites,manyofwhicharedisproportionately locatedinornearBlackcommunities,arenoweligibleforAIinfrastructure development.Thisshiftcouldelevateenvironmentalrisksifsafeguards arenotstrictlyenforcedorifexpeditedreviewsbypasscommunityinput andoversight.

BylimitingNEPAreviewandstreamliningpermittingprocesses,theorder reducesopportunitiesforpubliccommentandlocalparticipation.Asa result,Blackcommunitiesmaybeleftoutofkeydecisionsthataffecttheir neighborhoods,withlimitedabilitytoinfluenceorchallengepotentially harmfulprojects.

Althoughtheexecutiveorderencourageslarge-scaleinvestment,itdoes notguaranteethatjobcreation,procurementcontracts,orworkforce developmentinitiativeswillreachhistoricallyunderservedBlack communities.Withoutintentionalinclusionmeasures,thesebenefitsmay bypassthosemostinneedofeconomicopportunity.

Communitieslocatednearnewdatacenters,powerplants,or transmissioncorridorsmayfaceincreasedexposuretopollution,landuse conflicts,ordisplacement.Withoutmechanismstoensureequitable distributionofbenefits,thesesamecommunitiesmaynotreceive improvedservices,infrastructureupgrades,oreconomicreturns.

HOWARECBCMEMBERSRESPONDING?

TheCongressionalBlackCaucus(CBC)hasledthefightfor environmentaljusticeinCongressforover40years.Theenvironmental justiceobjectivesintheCBCagendaforthe118thCongresswereto “ensureequitableimplementationoftheInfrastructureActandInflation ReductionActwhilealsoadvocatingforincreasedfundingtocreate efficientenergyprojectsandotherprophylacticmeasurestoremediate historicalenvironmentalinjustices.”Thisorderdoesnotacknowledgethe disproportionateimpactofpollutiononBlackcommunities,oneofthe CBC’skeypriorities.

ToreadmoreabouttheCBC’slegacyonenvironmentaljusticeissues,visit Avoice,ourvirtuallibrary.

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