The U.S. House of Representatives is set to advance the SPEED Act, a legislative effort aimed at slashing permitting timelines for data centers and AI infrastructure. The reform targets a critical bottleneck in the nation's tech competitiveness strategy.
- SPEED Act mandates 120-day federal permit review for data centers and AI infrastructure
- Current approval timelines average over 3 years, slowing U.S. AI deployment
- China has invested over $100 billion in AI infrastructure since 2020
- U.S. tech firms plan 60+ new data centers by 2027, many delayed by permitting
- Reform could add $2.4 trillion in GDP growth over 10 years
- 40% of planned infrastructure expansions are currently on hold due to regulatory delays
The U.S. House of Representatives is scheduled to hold a key vote on the SPEED Act (Streamlining Permits for Energy and Data Infrastructure), a bill designed to reduce permitting timelines for data centers and AI-focused infrastructure projects. The legislation mandates that federal agencies review permit applications within 120 days—down from current averages exceeding 3 years—under a standardized review process. By streamlining approvals, proponents argue the U.S. can accelerate deployment of AI compute capacity critical to national innovation and economic security. The bill’s passage is seen as pivotal amid growing competition with China, which has invested over $100 billion in AI infrastructure since 2020 and recently completed 12 new AI data center facilities. U.S. tech giants including Microsoft, Amazon, and Google have pledged to build more than 60 new data centers by 2027, but many face delays due to complex permitting requirements. The SPEED Act would require coordination among the Department of Energy, the Environmental Protection Agency, and the Department of Interior to ensure faster, consistent evaluations. If enacted, the law could cut average project approval times by 75%, enabling faster deployment of AI clusters essential for training large language models. The bill also establishes a new interagency task force to monitor delays and recommend further reforms. Industry analysts project that the accelerated rollout could add up to $2.4 trillion in GDP growth over the next decade by boosting U.S. AI output and manufacturing capabilities. Market participants, including infrastructure REITs and semiconductor suppliers, are closely tracking the vote. Companies like Digital Realty Trust and Equinix have already reported that 40% of their planned expansions are on hold due to regulatory uncertainty. A favorable outcome could trigger a surge in capital commitments and strengthen investor confidence in U.S. tech infrastructure leadership.