procurement

For now, most defense analysts say the French and Swedish announcements are more rooted in politics than military procurement.

Yet such risk left the procurement system in part because U.S. defense spending has dipped to 3% of the economy from a peak of 6% in the 1980s.

Vacant data centers would pose a “severe budgetary threat” to the utilities sector, as “regulated utilities around the country have based their power procurement decisions and rate-setting decisions on data-center demand growth,” Arun added.

The administration’s AI Action Plan aims to accelerate AI adoption within the government and military by pushing changes to regulatory and procurement processes.

The country’s supportive policy environment allows data centers to secure clean power through many procurement options.