Colocating artificial intelligence data centers with energy infrastructure on Federal public lands—A science synthesis and spatial analysis to inform decision making

Abstract

Executive Summary Artificial intelligence (AI) is rapidly transforming industries and economies, creating an urgent need to strategically plan for the energy and infrastructure required to support increasing AI use. U.S. Federal agencies and bureaus have been directed to explore ways to accelerate permitting, development, and deployment of energy resources and AI technologies, including encouraging the colocation of energy infrastructure and data centers. To inform these initiatives, this report synthesizes relevant scientific information and presents a spatial analysis of existing energy infrastructure and data centers on or near U.S. Federal public lands managed by the Bureau of Land Management (BLM). The purpose of this science synthesis and spatial analysis is to provide the BLM with foundational information for considering potential colocation of data centers with energy infrastructure on Federal public lands to support evidence-based decisions. Additionally, this report provides insight into current (2025) and potential future energy demands by providing projections of a range of potential future environmental conditions relevant to maintaining industry-recommended cooling temperature standards necessary for efficient data center operations. As a part of this effort, a rapid response literature review was conducted of the best available science on the topic of data center development and energy infrastructure in July–August 2025, supplemented by additional resources recommended by U.S. Federal agency and bureau subject matter experts (hereafter experts; including the U.S. Department of Energy National Laboratory of the Rockies) and peer reviewers. To better understand current conditions relevant to AI data center development, a spatial analysis was conducted across Alaska and 11 States in the Western United States, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming, all of which contain extensive BLM-managed surface lands (hereafter referred to as “BLM lands”) that could be considered for the colocation of energy infrastructure and AI data centers. This effort identified BLM lands within 10 miles of existing transmission lines, consistent with methods used in previous BLM programmatic environmental impact statements. This report describes the types of data centers operating within the United States, which vary in ownership, size, technology, and proximity to end users. This report then outlines the primary considerations of data center development, including reliable energy supply, natural resources (such as water availability to support cooling requirements), and relevant policy and regulatory considerations. Energy supply considerations are pivotal for data center operation. Between 2014 and 2018, data centers in the United States accounted for nearly 2 percent of the Nation’s total electricity consumption, and data center energy consumption is projected to increase from 2 to 6.7–12 percent of total U.S. electricity use by 2028. These energy requirements necessitate careful consideration of energy supply when considering potentially suitable locations for data center development. Experts anticipate that an increase in renewable energy generation will likely support most potential future power demand needs, including for data centers, followed by increases in natural gas, nuclear, and geothermal energy production. Additional capacity in the form of battery storage will likely not generate electricity, but may improve the reliability and flexibility of supply, helping to ensure that growing data center loads can be met. However, the U.S. Department of Energy estimates that the United States will need, on average, 57 percent more energy transmission infrastructure by 2035 to account for the growing power demand introduced by development such as data centers. Cooling server equipment in data centers requires large amounts of electricity and water, and this demand can be exacerbated by hot and humid conditions. Energy efficient water-based cooling technologies may reduce electricity consumption onsite but require more water consumption. This additional water demand has the potential to increase water stress and competition with other users. As such, developing data centers will likely need a thorough assessment of current and potential future water availability, as well as consideration of how water demand may change across other sectors. Data center development involves policy and regulatory considerations, as projects must undergo environmental review and authorization processes that can take 18–24 months. Coordinating these environmental reviews and authorizations with other energy development projects, such as building new transmission lines, may cause additional delays. Recent efforts by the U.S. Department of Energy and U.S. Department of the Interior aim to expedite environmental reviews and authorizations and improve coordination across agencies. The spatial analysis identified 771 existing AI data centers and more than 3,300 power plants. The spatial analysis found that 6 percent of AI data centers and 22 percent of power plants in the Western United States were on or within 1 mile of BLM lands, and California had the largest number of facilities. Most existing AI data centers were near high-voltage transmission lines and close to power plants, supporting efficient energy delivery. More than 90,000,000 acres of BLM lands were within 10 miles of existing high-voltage transmission lines, representing 38 percent of BLM lands in the study area. Available transmission infrastructure and the overlap with BLM lands varied by State, and Alaska had limited overlap compared to the rest of the Western United States. To operate most efficiently, data center temperatures must be at or below 80.6 degrees Fahrenheit. This analysis of future temperature and precipitation projections indicated increasing cooling demands for data centers, particularly in Arizona, California, and Nevada, where rising temperatures are expected to increase energy and operational costs while potentially stressing current regional electrical grid infrastructure. This report highlights relevant energy supply, natural resources, and regulatory considerations for data center development on BLM lands. This report does not provide a comprehensive ecological, regulatory, land suitability, or permitting analysis. The factors described here are contextual considerations only and are not intended to identify, rank, quantify, or recommend optimal areas for data center colocation. This spatial analysis focused solely on energy considerations relevant to data centers and did not consider water availability, critical habitats, BLM National Conservation Lands, areas of cultural or historical significance, and other sensitive resources. These topics are recognized as critical but were not within the scope of this science synthesis and spatial analysis.