The Department of Energy (DOE) has launched a first-of-its-kind initiative to open significant portions of its Idaho National Laboratory (INL) to private development of artificial intelligence (AI) data centers paired with new energy projects.
On September 8, 2025, DOE issued a Request for Applications (RFA) seeking proposals from industry teams to lease up to 100,000 acres within INL for the siting and rapid deployment of these projects. The RFA is designed to attract well-capitalized developers capable of bringing together data center operators, energy providers, and infrastructure partners to deliver secure, large-scale AI computing facilities supported by reliable, preferably clean, power.
DOE held a widely attended industry day on September 26, 2025, to further explain the RFA, address developer questions, and provide clarity on project requirements, site considerations, and expectations.
This INL RFA is the first of several anticipated solicitations at DOE sites. Additional RFAs are expected soon for the Oak Ridge Reservation, the Paducah Gaseous Diffusion Plant, and the Savannah River Site.
Key points from DOE’s industry day include:
- DOE is making ~100,000 acres of its 890-square-mile INL available and is prioritizing rapidly deployable projects.
- While DOE is offering land, developers must assemble fully resourced teams—including energy partners (for islanded systems) or utilities (for grid-connected systems), and networking providers—to ensure project success.
- DOE expressed a strong interest in pairing nuclear and geothermal energy with AI data centers but emphasized it remains open to other technologies.
About the RFA
The INL RFA stems directly from the President’s May 23, 2025 Executive Orders on nuclear energy, AI, and critical technologies, which instructed DOE to leverage federal lands to accelerate deployment of secure AI infrastructure paired with firm, clean energy sources. INL was identified as the first site for implementation, with additional solicitations expected for Oak Ridge, Paducah, and Savannah River.
DOE envisions a three-phase program in the RFA:
- Initial development – including National Environmental Policy Act (NEPA) review and project finance.
- Construction – building the data centers and associated energy assets.
- Operations – long-term deployment and integration.
Applications are due November 7, 2025, with DOE expected to select multiple projects by mid-December 2025.
DOE indicated it will consider a range of configurations, including (i) concurrent development of data centers and energy supply, (ii) phased projects where data centers are built first and energy follows, and (iii) innovative standalone energy projects designed to serve future AI load.
What you need to know from industry day
- DOE’s RFA aligns with federal priorities to bolster AI infrastructure and energy resilience in support of national security and competitiveness.
- DOE expects applicants to propose creative system configurations (e.g., collocated, distributed, or phased). No minimum size is required.
- Rapid deployment and operational reality are top priorities. DOE expects applicants to demonstrate properly resourced and mature consortia, financing, and integration plans to rapidly complete construction.
- DOE highlighted use of NEPA streamlining tools. For more, see here. DOE indicated in both the RFA and during industry day that it would apply categorical exclusions--and their short review timelines--liberally to selected projects.
- DOE intends to negotiate long-term lease agreements with the selected applicants, which will detail the parties’ rights and responsibilities. DOE historically has encouraged its lessees working on the INL to enter into separate services contracts with the INL management and operations contractor.
Challenges and considerations
- Electricity. DOE will not provide access to its internal electricity distribution networks. Developers must propose islanded systems with energy partners or utility interconnections.
- Water. DOE will not make its federal reserve water rights available. Applicants must acquire sufficient Idaho water rights in the open market to guarantee operations.
- Networking. DOE is not providing fiber connection. Applicants must secure partners and plan around line constraints.
Energy preferences. DOE officials highlight nuclear and geothermal as preferred technologies but did not rule out other sources. DOE is open to phased approaches that bring energy assets online incrementally.
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