ai action plan triggers data center boom for us military and intelligence

2025-07-30 general

Washington, Wednesday, 30 July 2025.
The US government’s AI Action Plan is set to dramatically increase data center construction. This growth is particularly focused on high-security facilities for military and intelligence operations. The initiative streamlines regulations and leverages the CHIPS Act. It aims to accelerate AI innovation and energy infrastructure. Semiconductor firms like NVIDIA, TSMC, and ASML are expected to see increased demand. The plan will create new technical standards in collaboration with agencies like NIST and the Department of Defense.

Investment landscape

The AI Action Plan, released on July 23, 2025, outlines over 90 policy recommendations [2][6]. These recommendations aim to accelerate AI innovation, build robust AI infrastructure, and promote US AI technology on the global stage [6]. Former President Trump emphasized the importance of this plan, stating it would position America as the global leader in AI [5]. This initiative follows Executive Order 14179, which sought to remove obstacles to US AI leadership, signaling a shift towards deregulation in the AI sector [4].

Semiconductor and technology beneficiaries

The plan’s focus on bolstering US semiconductor manufacturing and AI infrastructure is expected to benefit several companies [1][6]. NVIDIA, TSMC, and ASML are likely to see increased demand for their advanced chips and manufacturing technologies [1]. Other potential beneficiaries include Broadcom, Intel, Micron Technology, and AMD [7]. These companies are positioned to capitalize on the increased need for high-performance computing power in data centers and other AI-related applications [7].

Data center and infrastructure plays

The construction and expansion of data centers are central to the AI Action Plan [1]. Companies involved in data center infrastructure, such as Digital Realty Trust, Equinix, and DigitalBridge Group, stand to gain from this initiative [7]. The plan also emphasizes the need for sufficient electrical power to support these energy-intensive facilities [1]. This creates opportunities for companies like Eaton, GE Vernova, and Vertiv Holdings, which provide power management solutions [7]. Streamlined approval processes for data centers are expected to further accelerate development [4].

Potential challenges and risks

Despite the ambitious goals, the AI Action Plan faces potential hurdles [2]. A key challenge is the strain on energy infrastructure, with AI data centers projected to consume a significant portion of the US electricity supply [2]. Deutsche Bank estimates that AI data centers’ power consumption could rise from 4.4% of total US electricity in 2023 to a median forecast of 12% by 2028 [2]. This surge in demand could strain the US power grid and potentially hinder AI development [2]. Regulatory and political challenges could also impede the plan’s implementation [2][4].

Market and stock implications

The AI Action Plan is expected to have a significant impact on the stock market, particularly for AI-related companies [7]. While the plan aims to boost AI development, concerns exist regarding overhyped AI stocks and the potential for a market bubble [2]. Investors should carefully analyze companies’ fundamentals and profitability, as irrational investment behavior can lead to substantial losses [2]. The plan’s success hinges on addressing systemic challenges, such as energy bottlenecks and regulatory hurdles, to ensure sustainable growth in the AI sector [2].

Bronnen

Data Centers AI Action Plan