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US To Lease State Land For Local Data Centers Amid AI Infrastructure Push

In his final days in office, US President Joe Biden signed an executive order aimed at accelerating the large-scale construction of data centers across the country, particularly for the development of artificial intelligence (AI). Under the new directive, the federal government will lease state land for the establishment of infrastructure vital to the nation’s ongoing technological leadership, particularly in AI.

Key Facts

  • The executive order requires federal agencies to speed up the creation of large-scale AI infrastructure on state-owned land, with provisions in place to ensure investor responsibility.
  • The US Department of Defense and the Department of Energy will each designate at least three sites where the private sector can build data centers.
  • Competitive bidding processes will be held for private companies, which will be tasked with covering all costs related to construction and operation.
  • Investors will also be required to ensure that the data centers are powered by clean energy to meet their full operational capacity.
  • While the federal government will lease the land, companies will retain ownership of the materials and infrastructure they develop on the land.
  • The order mandates that the construction of AI-focused data centers on federal land be carried out through public works contracts.

Important Quote

“We must not take our leadership position for granted. We will not allow the United States to be overtaken when it comes to the technologies that will define the future, nor must we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water,” said President Biden.

Key Story

This move comes just a day after the announcement of new rules governing the sharing of AI chips and models with foreign countries. These regulations aim to control global access to US-developed AI chips and technologies, ensuring that sensitive AI applications remain under US control. The new rules are focused on regulating the export of American-made chips and AI technologies, pivotal to the most advanced AI developments.

MENA Venture Capital Stable As International Investor Activity Shifts

A Data-Led Analysis Of Investor Behavior In A War-Affected Region

Venture capital activity in the Middle East and North Africa remained relatively stable one month after the escalation of regional conflict. Early data, however, indicate changes in investor behavior rather than immediate shifts in funding totals. Initial signals are visible in investor participation, capital allocation, and deal pipeline activity.

Venture Markets And The Lag In Response

Funding announcements reflect decisions made months earlier, meaning that today’s figures do not capture the full impact of current events. Investors typically adjust strategies gradually, signaling future shifts long before they are immediately visible in total funding numbers.

International Capital As The Key Pressure Indicator

Participation of international investors remains a key indicator across the MENA venture market. Global capital has historically accounted for a significant share of funding in the region. Following global interest rate increases, international participation declined through 2023. This shift was reflected in lower cross-border deal activity, more cautious capital deployment, and longer fundraising timelines.

Implications For The Broader Startup Ecosystem

Changes in international investor activity affect multiple parts of the startup ecosystem. A recovery in participation was recorded in 2024 and continued into 2025, supporting funding activity and cross-border investment. If uncertainty persists, potential effects include slower investment decisions, reduced cross-border engagement, and extended fundraising cycles. International capital also plays a role in supporting larger funding rounds and access to global networks.

Next Steps For Stakeholders

International capital represents one of several factors shaping venture activity in the region. Its movement often precedes changes in late-stage funding, startup formation, and exit activity. Investors, policymakers, and ecosystem participants rely on data and scenario analysis to assess these trends and adjust strategies.

For A Deeper Insight

Further analysis on venture activity, capital flows, and geopolitical impact across the region is available in the full MAGNiTT report.

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