Last week, the Trump administration was preparing a series of administrative measures aimed at addressing the huge demand for electricity brought about by the rapid expansion of AI. In order to make AI develop faster and smoother, the government intends to adopt some new policies to ensure that there is enough electricity to support it.

As soon as the news came out, the market reacted immediately: U.S. chip stocks collectively rose: TSMC ADR rose more than 2%, Nvidia rose 1.76%, hitting a new record high, and the total market value reached an astonishing $3.85 trillion.

This shows that investors are very bullish on the future growth potential of these companies, especially driven by demand in the field of AI.

The Trump administration: Solving the power demand for AI

According to Reuters, the Trump administration is preparing a series of administrative measures aimed at responding to the huge demand for electricity needed for the rapid expansion of AI. Specific measures include: simplifying the grid connection process: making it easier for data centers to connect to the grid; Provision of federal land for the construction of data centers: support for more data center construction; Released the AI Action Plan: To further promote the development and application of AI.

As soon as these news came out, the U.S. stock market reacted immediately: chip stocks collectively rose: TSMC ADR rose more than 2%, Nvidia rose 1.76%, hitting a new record high, and the total market capitalization reached an astonishing $3.85 trillion. Oklo, a nuclear power concept stock, soared more than 11% intraday, and although it finally closed down 1%, it still showed a high degree of attention from the market.

According to Reuters, citing people familiar with the matter, the executive order will address grid connection delays and provide federal land support for data center construction. This is because the massive amount of power required for AI data processing is putting a strain on utilities and power grids in many states in the United States.

To further advance the development of AI, the White House plans to set up an "AI Action Day" on July 23, when AI action plans will be unveiled and public events will be arranged to attract public attention. In addition, Trump will speak on July 15 at an event on artificial intelligence and energy hosted by Pennsylvania Senator Dave McCormick.

In January, Mr. Trump met with CEOs of top tech companies at the White House to promote a Stargate project led by ChatGPT creators OpenAI, SoftBank and Oracle. The project plans to invest billions of dollars to build data centers and create more than 100,000 jobs in the United States.

AI models require a lot of electricity to train, which is driving the first significant increase in electricity demand in the United States in decades. According to Grid, a power industry consulting firm According to Strategies, U.S. electricity demand will grow fivefold between 2024 and 2029 compared to 2022 projections. According to Deloitte's latest report, power demand for AI data centers could increase by more than 30 times by 2035.

The challenge of connecting new power generation projects to the power grid

Connecting new power generation projects to the grid is a big problem: they require extensive impact assessments, which can take years to complete. The existing transmission infrastructure was already overwhelmed and unable to meet the rapidly growing demand.

In order to deal with these problems, the Government is considering a number of specific options.

According to sources, the government plans to identify those power generation projects that are more prepared and give them higher priority in the waiting list for grid connections. This can speed up some critical projects.

Large data centers require a lot of space and resources, but site selection often faces zoning hurdles or public opposition.

To that end, the executive order may address this issue by providing project developers with land managed by the Department of Defense or the Department of the Interior. This means that companies can build data centers on federal land, reducing local resistance.

Tech giants bet on nuclear energy

Since the beginning of this year, we have seen that technology giants represented by Microsoft, Google, Amazon, and Meta are betting strongly on nuclear energy, and the market generally believes that this is intended to plan for the development of AI business in advance.

Case in point: in early June, the tech giant Meta teamed up with Constellation, the owner of the largest nuclear power plant in the United States Energy has reached a 20-year agreement to meet the demand for electricity spawned by the AI boom.

Starting in June 2027, Meta will purchase approximately 1.1 gigawatts of electricity from the Constellation's Clinton Clean Energy Center in Illinois, which is equivalent to the entire capacity of one of the center's nuclear reactors, according to the released statement.

The Trump administration is also interested in accelerating nuclear power construction in the United States, and to that end he has signed four executive orders aimed at accelerating the deployment of nuclear energy, and has set an ambitious goal of quadrupling U.S. nuclear power production by 2050. In addition, the executive orders call for a comprehensive overhaul of the Nuclear Regulatory Commission and the establishment of a domestic supply chain for nuclear fuel.