DOE Opens Commercial AI and Energy Program for U.S. Companies at Idaho National Lab
On September 8th, 2025, the Office of Nuclear Energy at the Department of Energy (DOE) issued a solicitation for proposals from U.S. companies to build and power AI data centers at Idaho National Laboratory (INL) under the new Commercial AI & Energy Generation Infrastructure Program. This opportunity aims to drive innovation in reliable energy technologies, such as nuclear technologies, contributing to lower energy costs, and strengthening American leadership in AI. Awarded applicants will be responsible for all costs of the project, including designing, manufacturing, constructing, operating, and decommissioning all infrastructure. Applications are due November 7th, 2025, with an anticipated selection announcement by December 19th, 2025.
DOE Invites Proposals Integrating AI with Nuclear and Geothermal Energy at INL
The DOE is seeking proposals that support the growing demand for AI and energy infrastructure by entering long-term Lease Agreements at INL. The DOE is interested in proposals that integrate innovative energy generation and technologies with AI infrastructure specifically for nuclear technologies such as small modular reactors, microreactors, enhanced geothermal systems, and cold underground thermal storage. Applicants that provide energy generation or storage will be responsible for interconnection with the utility provider.
Project Configurations
The DOE is interested in proposals that fall under the following three project configurations:
- Integrated AI Infrastructure and Energy Projects: Encompass both an AI data center facility and the energy infrastructure needed to power the facility.
- Phased Integrated AI Data Center and Energy Projects: Similar to the Integrated Configuration but includes an initial phase that prioritizes deploying a center to meet near-term market needs, followed by later phases of additional capacity and energy generation.
- Energy Infrastructure Projects: Focus specifically on energy generation, transmission, or storage infrastructure.
DOE Encourages Applicants to Leverage LPO and GDO Support for Project Funding How to fund the project
The DOE will not provide financial support if selected for this opportunity; the awardee is responsible for all costs associated with the project and its construction. However, the solicitation highlights two potential avenues to help applicants finance their project: the DOE Loan Programs Office and the DOE Grid Deployment Office. The DOE encourages applicants to contact these offices directly to explore these funding opportunities.
- The Loan Programs Office (LPO)
- The LPO provides debt financing for high-impact, large-scale projects that contribute to U.S. energy security, grid reliability, and lowering costs for Americans. There are several financing programs through the LPO, including the Innovative Energy and Innovative Supply Chain (Section 1703) Financing Program and the recently expanded and revised Energy Dominance Financing Program (Section 1706). There is no maximum loan size, and the loan amount may be up to 80 percent of eligible costs and up to 30 years.
- The Grid Deployment Office (GDO)
- The GDO supports initiatives that strengthen the reliability, resilience, and delivery of electricity in America. Several financial assistance programs are offered through the GDO including the Transmission Facilitation Program for funding to build interregional transmission lines and the Grid Resilience and Innovation Partnerships Program for funding to expand grid capacity and flexibility.
DOE Chooses Four National Sites for AI and Energy Infrastructure Projects
This opportunity is the first of four sites previously identified by the DOE to participate in AI infrastructure and energy generation projects. Along with INL, Oak Ridge Reservation in Tennessee, Paducah Gaseous Diffusion Plant in Kentucky, and Savannah River Site in South Carolina were selected amongst 16 sites. These sites were chosen for their ability to house large-scale data centers, new power generation, and the necessary accompanying infrastructure. Under these four solicitations, the DOE will develop private-public partnerships and support the construction of AI infrastructure with plans to be operational by the end of 2027.
Supporting the Administration’s Goals for Energy and AI Innovation
This solicitation corresponds to several executive orders President Trump has issued related to energy and AI innovation across America, including:
McAllister and Quinn can Provide Strategic Proposal Support for DOE AI and Energy Proposals
If you are interested in learning more about this opportunity or need assistance navigating the application process, McAllister & Quinn is here to help. Our team of experts, including those with deep knowledge of AI, nuclear energy, and policy, can provide strategic guidance and proposal development services to help align your project with this federal funding opportunity, and more.
Contact us today to see how we can support your efforts in advancing AI and energy technologies and securing federal funding.
Leah Clark
Leah Clark is a Managing Director in the McAllister & Quinn Advanced Technology Practice. Leah holds a Master of Science in Engineering (M.S.E.) in Nuclear Engineering from the University of Michigan, where her research, funded by the NNSA Consortium for Monitoring, Technology, and Verification, focused on radiation detection for nuclear nonproliferation efforts, bringing specialized experience in nuclear engineering, energy, and technology policy to her role at McAllister & Quinn