Department of Energy seeks Oak Ridge AI data center and power plant plans

The U.S. Department of Energy is seeking proposals from private companies to build an AI data center on federal land in Oak Ridge. Two sites are available for lease, including a 95-acre parcel and a parcel of up to 150 acres at East Tennessee Technology Park. Companies also need to propose ways to power energy-intensive data centers, either by building new power plants or partnering with power plants. The effort is part of the Trump administration’s goal to accelerate the development of energy-intensive data centers. Data center infrastructure on federal lands.

Private companies can now compete to build an AI data center and power plant on federal land in Oak Ridge.

The U.S. Department of Energy announced earlier this year that Oak Ridge was one of four sites selected to power an AI data center that provides storage for networked computer servers that process and manage large amounts of information.

The energy sector is now asking companies for specifics, and on September 30 launched a call for proposals for interested parties to share ideas about data centers and how they should be powered. The project could also support President Donald Trump’s administration’s core goal of “freeing up America’s energy.”

In his second term, President Trump issued a series of executive orders aimed at making the United States a leader in building data centers for artificial intelligence. The July order is specifically aimed at expediting the review of building permits for data centers planned on federal land, as well as relaxing the regulations necessary to build data centers.

What can businesses do with Oak Ridge data centers?

Whichever company the government chooses will lease land from the federal government for the project. A Department of Energy spokesperson told Knox News in an email that lease terms are negotiable.

Companies have until December 1 to tell the energy department about their plans for the two sites. One covers about 95 acres in Oak Ridge north of the intersection of Bethel Valley Road and Tennessee Highway 95, and the other spans up to 150 acres in the East Tennessee Technology Park, which was the site of the Manhattan Project.

The Department of Energy’s request lists options on a land-by-land basis. The 95-acre site would require a data center, and the Heritage Center could be used for another center, a power plant to support the center, or both.

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Data centers require large amounts of electricity. Industry’s annual energy use will amount to about 4.4% of the total energy used in the United States in 2024, according to a report from Lawrence Berkeley National Laboratory. The Department of Energy is asking companies to present plans that show how they will meet that demand, either by creating new power producers or partnering with other new energy generation ventures in the region.

The Oak Ridge region’s proximity to the Tennessee Valley Authority grid is cited in the request as an advantage for the East Tennessee region.

On September 30, the National Nuclear Security Administration also announced a request for proposals for the Savannah River site in South Carolina. Like Oak Ridge, the Savannah River Reservation is also home to a national laboratory. It also produces tritium, a key component of nuclear weapons.

How long does it take to build a data center?

Knox News reported earlier this year that the Trump administration hopes some data centers on federal land can start operating in 2027.

The Department of Energy’s request, released in September, requires companies to demonstrate that it will take up to 18 months to develop the site and up to two years to construct the facility.

Additionally, if companies want to build their own power generators, they will need to prove that the technology behind the generation is usable and accessible by the time the data center begins operations, Energy Department staff said in the request.

Companies will be reviewed to determine whether their proposals are financially and technically viable, according to a Department of Energy news release. The government also wants to know how stakeholders plan to handle regulations and permits.

Mariah Franklin reports on technology and energy for Knox News. Email: mariah.franklin@knoxnews.com. Signal: Marai Franklin.01