Trump’s AI Action Plan Drives Deregulation and Energy Expansion to Counter China’s Tech Rise

President Donald Trump has unveiled a sweeping AI Action Plan aimed at accelerating U.S. leadership in artificial intelligence through deregulation and expanded energy infrastructure. The initiative, outlined in a 90-plus page strategy, prioritizes easing restrictions on data centers, semiconductor manufacturing, and energy projects, while emphasizing nuclear and geothermal power to meet AI’s growing electricity demands. The administration argues the plan will counter China’s technological advancements and solidify America’s role in shaping global AI frameworks [1][2].

Central to the strategy is the reduction of bureaucratic barriers for AI infrastructure. The Trump administration aims to expedite permitting for data centers and chip manufacturing, critical for training advanced models. Executive actions will task the U.S. International Development Finance Corporation and the Export-Import Bank with promoting global adoption of U.S. technology. Additionally, government contracts will require large language models to adhere to standards of neutrality and impartiality, reflecting broader concerns about ideological bias in AI [3][4].

The energy component of the plan has drawn scrutiny for its focus on nuclear and geothermal resources, which will be granted priority grid access to address anticipated surges in demand. Bloomberg NEF estimates that data centers could consume 8.6% of U.S. electricity by 2035, up from 3.5% currently. The administration argues that relaxing regulations on coal, natural gas, and nuclear power is essential to avoid potential shortages, particularly as two power plants face emergency intervention [5][6]. Critics, however, question the marginalization of renewable energy projects in favor of traditional sources, raising concerns about long-term climate goals [7].

The AI Action Plan also reverses Biden-era policies, including a 2023 directive mandating safety assessments for tech companies. White House AI czar David Sacks emphasized the need to “lead in innovation, infrastructure, and global partnerships” while ensuring AI aligns with American workers’ interests. The strategy’s rollout includes consultations with Silicon Valley experts and a focus on open-source ecosystems to foster collaboration [8][9].

Analysts note that the deregulatory approach could incentivize private investment by reducing compliance costs and streamlining project timelines. However, the emphasis on non-renewable energy sources may face pushback from environmental groups. The plan’s geopolitical implications are significant, as the U.S. seeks to counter Chinese influence in AI development and shape global standards [10].

Sources:

[1] [President Trump describes his action plan for AI technology] (https://www.mitrade.com/insights/news/live-news/article-3-981537-20250724)

[2] [Trump’s AI Action Plan Calls for Deregulation] (https://www.pymnts.com/artificial-intelligence-2/2025/trumps-ai-action-plan-calls-for-deregulation-chatbot-free-speech/)

[3] [Trump admin unveils AI strategy to maintain US dominance] (https://www.yahoo.com/news/articles/trump-admin-unveils-ai-strategy-181812550.html)

[4] [Trump’s call for deregulation extends to AI infrastructure] (https://techcrunch.com/2025/07/23/trump-is-set-to-unveil-his-ai-roadmap-heres-what-to-know/)

[5] [Trump’s AI Action Plan set to boost AI innovation, data center infrastructure] (https://seekingalpha.com/news/4470682-trumps-ai-action-plan-set-to-boost-ai-innovation-data-center-infrastructure-less-regulations-on-the-way)

[6] [Trump administration officials address energy grid concerns] (https://www.mitrade.com/insights/news/live-news/article-3-981537-20250724)

[7] [Analysts highlight energy strategy tensions] (https://publicknowledge.org/hopes-and-fears-for-president-trumps-ai-action-plan/)

[8] [White House AI czar outlines policy priorities] (https://x.com/LTSmash420/status/1948084652519940459)

[9] [Trump’s AI Action Plan leverages Silicon Valley expertise] (https://www.newsbreak.com/news-on-6-kotv-tulsa-1590911/4128281029636-from-tech-podcasts-to-policy-trump-s-new-ai-plan-leans-heavily-on-silicon-valley-industry-ideas)

[10] [Geopolitical implications of U.S. AI strategy] (https://www.forbes.com/sites/paulocarvao/2025/07/23/what-trumps-ai-action-plan-means-for-us-tech-leadership/)

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