New Bill Fast-Tracks Massive AI Data Centers and Guarantees Power Plants Payouts for Future Regulations

The Securing Reliable Power for Advanced Technologies Act is a big deal, and it’s not just about silicon chips. This legislation aims to dramatically speed up the construction of massive Artificial Intelligence (AI) infrastructure—think data centers needing 50 megawatts or more of power—by creating a special, fast-track permitting lane under the Defense Production Act (DPA).

Essentially, the President can designate these projects as “priority national defense projects.” Once designated, federal agencies have to coordinate and complete all necessary permits and authorizations within a strict deadline, usually no more than two years after a complete application is filed. That’s lightning speed in the world of federal permitting, which often takes five to ten years for major infrastructure. But here’s the kicker: the bill also defines the power plants and fuel infrastructure needed to feed these AI behemoths as part of the “critical infrastructure,” including dedicated baseload facilities (100MW+) that cannot primarily use intermittent renewable energy sources. This means the bill is prioritizing massive, firm power sources, like natural gas or coal, to keep the AI humming.

The Need for Speed: What Gets Skipped?

For the busy person, the most immediate impact of this acceleration is on environmental and community oversight. When you compress a decade of review into two years, something has to give. The bill mandates that a single federal agency take the lead on all environmental reviews, and those documents are considered sufficient for all other federal authorizations. This concentration of authority, combined with the hard two-year deadline, raises serious questions about whether adequate time will be spent assessing the environmental impact on air quality, water usage, and local communities near these massive power plants and data centers.

If you’re a taxpayer or a resident near a proposed site, your ability to challenge these decisions is also severely limited. The bill restricts legal challenges to specific, high-level appellate courts (the D.C. Circuit or the circuit where the project is located) and imposes a tight 60-day window to file a lawsuit after the designation or authorization is issued. Furthermore, the courts are instructed to give expedited consideration and are heavily restricted in their ability to halt a project (injunctive relief), only allowing it if the action was found to be arbitrary and capricious by “clear and convincing evidence.” This essentially makes it extremely difficult for citizens or advocacy groups to slow down or stop a project, even if they find flaws in the rushed review process.

The Regulatory Insurance Policy

Perhaps the most unusual and financially significant part of this bill is the compensation requirement for the power generation facilities. If a federal statute, regulation, or permit condition changes after the project is approved and substantially impairs the operation of one of these dedicated power plants for 180 continuous days, the U.S. government must pay compensation to the owner.

This payment covers the reduction in the facility's fair market value plus the lost revenue. Think of it as a taxpayer-funded insurance policy against future environmental regulations. If, five years from now, the EPA imposes stricter emissions standards that force a contracted coal or gas plant to shut down or operate at reduced capacity, the federal government—meaning you, the taxpayer—is on the hook to pay the plant owner for their losses. This provision creates a huge financial disincentive for the government to ever impose new environmental or operational rules on these specific power facilities, effectively locking in their current operating status and creating a massive, contingent liability for the Treasury.

Financial Backing for Baseload

Finally, the bill opens up the Defense Production Act’s financial assistance programs (loans and loan guarantees) to these designated baseload power facilities, including coal-fueled plants, if they are committed to serving the critical AI infrastructure. This provides a direct federal subsidy channel to expand or preserve power generation capacity that might otherwise be deemed economically or environmentally unviable. The priority is clear: firm, reliable power for AI, and the federal government is willing to use its financial tools to guarantee it, prioritizing facilities that can operate or repower within 36 months.