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Trump’s AI plan is a massive handout to gas and chemical companies

The Owner Press by The Owner Press
July 29, 2025
in Business News
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The Trump administration put out its vision for AI infrastructure within the US final week. It’s a dream for the fossil gas and chemical industries — and a nightmare for wind and photo voltaic power and the setting.

An “AI Action Plan” and flurry of government orders Donald Trump signed final week learn like manifestos on making AI less “woke” and less regulated. They’re full of head-spinning proposals to erode bedrock environmental protections within the US, on high of incentives for corporations to construct out new information facilities, energy vegetation, pipelines, and laptop chip factories as quick as they will.

It’s a deregulation spree and a large handout to fossil fuels, all within the identify of AI.

What the AI plan “is basically about” is “utilizing unprecedented emergency powers to grant large new exemptions for information facilities and particularly fossil gas infrastructure,” says Tyson Slocum, power program director on the client advocacy group Public Citizen. “I believe they’ve a real curiosity in accommodating Massive Tech’s priorities. However it’s a chance to marry their priorities for Massive Oil.”

“It’s a chance to marry their priorities for Massive Oil.”

Knowledge facilities are notoriously energy-hungry and have already led to a surge of new gas projects meant to satiate rising demand. However many tech corporations have sustainability commitments they’ve pledged to fulfill utilizing renewable power, and as wind and photo voltaic farms have usually grown cheaper and simpler to construct than fossil gas energy vegetation, they’ve turn into the fastest-growing sources of recent electrical energy within the US. Now, Trump needs to show that on its head.

He signed an executive order on July twenty third meant to “accelerat[e] federal allowing of knowledge heart infrastructure.” It tells the Secretary of Commerce to “launch an initiative to supply monetary assist” for information facilities and associated infrastructure tasks. That would embody loans, grants, and tax incentives for power infrastructure — however not for photo voltaic and wind energy. The manager order describes “lined parts” as “pure gasoline generators, coal energy tools, nuclear energy tools, geothermal energy tools” and another electrical energy sources thought-about “dispatchable.” To be thought-about dispatchable, operators have to have the ability to ramp electrical energy technology up and down at will, so this excludes intermittent renewables like photo voltaic and wind energy that naturally fluctuate with the climate and time of day.

Trump’s AI planning doc equally says the administration will prioritize deploying dispatchable energy sources and that “we’ll proceed to reject radical local weather dogma.” Already, Trump has dealt killer blows to photo voltaic and wind tasks by hiking up tariffs and cutting Biden-era tax credits for renewables. The AI government order goes even additional to entrench reliance on fossil fuels and make it tougher for brand spanking new information facilities to run on photo voltaic and wind power.

“Proper now, you don’t qualify for expedited therapy in case your information heart proposal has wind and photo voltaic. It’s excluded from favorable therapy,” Slocum says. “So what’s the assertion for the market? Don’t depend on wind and photo voltaic.”

That’s not simply environmentally unfriendly, it’s inefficient — contemplating the present backlog for gas turbines and since fossil gas vegetation are usually slower and more expensive to build than onshore wind and photo voltaic farms. “This isn’t an power abundance agenda. That is an power fool agenda,” Slocum provides.

The Trump administration needs to hurry issues up by rewriting bedrock environmental legal guidelines. Trump, ever the disgruntled actual property mogul, has railed against environmental reviews he says take too lengthy and price an excessive amount of. He has already labored to roll back dozens of environmental regulations since moving into workplace. Now, the chief order directs the Environmental Safety Company (EPA) to switch guidelines below the Clear Air Act, Clear Water Act, Superfund regulation, and Poisonous Substances Management Act to expedite allowing for information heart tasks.

“That’s horrifying … These [laws] defend our public well being. They defend our youngsters. They defend the air we breathe and the water we drink,” says Judith Barish, coalition director of CHIPS Communities United, a nationwide coalition that features labor and environmental teams.

“That is an power fool agenda.”

The coalition has come collectively to struggle for protections for staff within the chip trade and close by communities. Semiconductor manufacturing has an extended historical past of leaching harmful chemicals and exposing employees to reproductive health toxins. Santa Clara, California, dwelling of Silicon Valley, has extra poisonous Superfund websites than another county within the US in consequence. The coalition needs to maintain historical past from repeating itself because the US tries to revive home chip manufacturing and dominate the AI market.

AI requires extra highly effective chips, and Trump’s government order fast-tracking federal allowing for information heart tasks consists of semiconductors and “semiconductor supplies.” Barish says “a chip manufacturing facility is a chemical manufacturing facility” due to all the commercial solvents and different chemical compounds semiconductor producers use. That features “forever chemicals,” for which the Trump administration has started to loosen regulations on how much is allowed in drinking water. Firms together with 3M and Dupont have confronted a landslide of lawsuits over endlessly chemical compounds linked to most cancers, reproductive dangers, liver harm, and different well being points, and have subsequently made pledges to phase out or phase down the chemical compounds. Now, producers are jumping on the opportunity to produce more forever chemicals to feed the AI craze.

Paradoxically, we may see information facilities and associated infrastructure popping up on polluted Superfund websites that Silicon Valley has already left in its tracks. Trump’s government order directs the EPA to determine polluted Superfund and Brownfield websites that could possibly be reused for brand spanking new information heart tasks (and tells different businesses to scour navy websites and federal lands for appropriate areas).

Workplace buildings are already located on or adjoining to previous Superfund websites the place cleanup is ongoing; Google staff have been exposed to toxic vapors rising from a Superfund site under their workplace again in 2013. Since it could take many years to totally remediate a website, oversight is vital. “For Superfund websites specifically, these are probably the most contaminated websites within the nation, and it’s important that there are complete opinions each for the people who find themselves going to be engaged on the websites, in addition to for the individuals who encompass them,” says Jennifer Liss Ohayon, a analysis scientist on the Silent Spring Institute who has studied the remediation of Superfund websites.

However Trump needs to erode oversight for brand spanking new information heart tasks that obtain federal assist — including “categorical exclusions” to typical National Environmental Policy Act assessments. Environmental opinions that do happen is also restricted by the sheer lack of people power at federal businesses the Trump administration has hacked to pieces, including the EPA.

“America wants new information facilities, new semiconductor and chip manufacturing services, new energy vegetation and transmission traces,” Trump mentioned earlier than signing his AI government orders final week. “Beneath my management we’re going to get that job finished and it’s going to be finished with certainty and with environmental safety and all the issues we’ve got to do to get it finished correctly.” Good luck.

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