HWG LLP AI & Emerging Technologies Client Advisory

By: Austin Bonner, Alex Tate, and Daeyeong Kim

This week, the Trump administration announced its AI Action Plan, which focuses on the United States achieving and maintaining “unquestioned and unchallenged global technological dominance.” In addition, President Trump signed three Executive Orders addressing AI infrastructure, chip and AI model exports, and ideological bias in large language models. Taken together, these actions underscore the administration’s intent to take multiple paths to AI deregulation (including putting pressure on states even when Congress has chosen not to), to continue the drive to faster data center buildouts, and to use federal procurement to shape private company behavior. With more than 100 recommendations, the AI Action Plan will generate new debates, proceedings, and obligations in the months to come. Here are our key recommendations for next steps as those processes unfold.

  1. Continue planning for compliance with state AI laws – while keeping an eye on federal preemption debate. Congress declined to adopt a moratorium on state AI laws as part of the recent reconciliation package, and the AI Action Plan does not fully endorse preemption. Instead, the Plan suggests that federal agencies should restrict AI-related federal funds or states with AI regulation the administration views as too onerous but also recognizes “states’ rights to pass prudent laws that are not unduly restrictive to innovation.” To the extent states accept this bargain, shaping their regulatory environments will take time—both for the administration to clarify which regulations it views as problematic and for state legislatures to respond. Against that backdrop, companies must continue to plan for compliance with state regimes like those in Colorado and Texas.
  2. Identify regulations standing in the way of AI innovation and adoption. Under the Plan, the White House Office of Science and Technology Policy (OSTP) will launch a public Request for Information to identify federal regulations that hinder AI innovation and adoption. The Plan also recommends that the Office of Management and Budget (OMB), the Federal Communications Commission, the Federal Trade Commission, and other agencies take action to address burdensome regulations and theories of liability. These proceedings will create multiple opportunities for engagement with policymakers. Now is the time to begin marshaling arguments about outdated rules.
  3. Get ready to demonstrate AI systems’ objectivity. Consistent with the new Executive Order Preventing Woke AI in the Federal Government, federal agencies will only procure AI models that accord with two principles: “truth-seeking” and “ideological neutrality.” The Order emphasizes that tools procured by the government may not be intentionally designed to encode partisan or ideological judgments, including those related to diversity, equity, and inclusion, unless “those judgments are prompted by or otherwise readily accessible to the end user.” OMB will produce implementation guidance for the agencies within 120 days, and suppliers doing business with the federal government should consider what kind of evidence is persuasive and reasonable to produce.
  4. Weigh in on export promotion. The President has directed a range of actions to promote exports of full-stack U.S. AI technology packages, including AI-optimized computer hardware, data center storage, cloud services, networking, data pipelines and labeling systems, AI models and systems, security and cybersecurity measures, and AI applications for specific use cases. The stated goal is to prevent U.S. allies from becoming “dependent on foreign adversary technology.” Within 90 days, the Department of Commerce (DOC) will establish an American AI Exports Program. Commerce will solicit proposals from industry-led consortia for packages to be included in the program. Selected packages will be eligible for federal support in the form of direct loans and loan guarantees, equity investment, co-financing, political risk insurance, credit guarantees, and technical assistance and feasibility studies.
  5. Seek expedited permitting and other support for qualifying data center projects. The Executive Order Accelerating Federal Permitting of Data Center Infrastructure directs the Secretary of Commerce, in consultation with the Director of OSTP and other relevant agencies, to provide financial support in the form of loans, grants, tax incentives, etc. for Qualifying Projects—defined as data center or covered component projects that (i) exceed certain capital expenditure or energy load thresholds, (ii) protect national security interests, or (iii) are labeled as such by the Secretaries of the Department of Defense, the Department of the Interior (DOI), the DOC, or the Department of Energy (DOE). Notably, covered components are widely defined to include: energy infrastructure (e.g., transmission lines, natural gas pipelines, substations, switchyards); natural gas turbines, coal, nuclear, and geothermal power equipment, and other dispatchable baseload energy sources; semiconductors; networking equipment; and data storage hardware and software.

As outlined in the AI Action Plan, the Order also directs relevant agencies to facilitate “efficient environmental reviews” by creating new categorical exclusions under NEPA, using the FAST-41 process for certain Qualified Projects, and streamlining regulations promulgated under applicable environmental laws to fast track the permitting process for data centers and supporting infrastructure. It additionally directs DOI and DOE to make available and authorize the use of Federal lands for the construction of data centers and supporting infrastructure. On Thursday, July 24, DOE announced its selection of four sites—the Idaho National Laboratory, Oak Ridge Reservation, Paducah Gaseous Diffusion Plant, and Savannah River Site—and its plans to begin the project solicitation process in the next few months. Each of these actions creates opportunities that data center and energy companies may be able to leverage.

Stakeholders should also consider participating in the rulemaking proceedings likely required to streamline regulations promulgated under NEPA, the Clean Air Act, the Clean Water Act, and other relevant laws, which could significantly alter permitting requirements applicable to data centers and their supporting infrastructure. Relatedly, building on its recent Request for Comment on data centers, the National Telecommunications and Information Administration (NTIA) held a listening session on July 22, 2025 to seek further input from stakeholders. NTIA indicated that it plans to continue engaging with stakeholders on data center issues—interested parties should consider working with NTIA as it prepares its forthcoming report on policy recommendations.

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HWG LLP’s cross-disciplinary Artificial Intelligence and Emerging Technologies practice advises clients on federal and state legislative and regulatory proceedings, company compliance, and related litigation matters. Please contact Austin Bonner for more information.

This advisory is not intended to convey legal advice. It is circulated publicly as a convenience and does not reflect or create an attorney-client relationship.