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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.

Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.

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