Paducah AI Data Center Questions and Answers.xlsx

Sheet1

The Atomic Energy Act (AEA) vests DOE with broad powers to contract for services and supplies necessary to conduct its mission, including the procurement of electric power for federally owned nuclear facilities like the PGDP site. These authorities have extended to DOE lessees at such sites because of the national security objectives and unique power reliability needs that apply. Moreover, the Trump administration has this year issued numerous executive orders and policies that support a broad reading of DOE's authority in this area. The significant national security interests underlying the proposed Artificial Intelligence (AI) data center at the PGDP site bolster DOE's authority to contract with multiple power providers to meet DOE's unique power needs.

Leases that may involve foreign entity ownership will be subject to the same or similar provisions as outlined below. Such entities will need to go through a vetting process. This process is often referred to as following policies and procedures for mitigating foreign ownership, control or influence (FOCI) in the U.S. defense industrial base.

a. This Lease is subject to a security review by the DOE Office of Environment, Health, Safety, and Security. The Lessee acknowledges that additional security requirements may be added to this Agreement via modification(s) depending on the result of that security review and/or any other applicable U.S. Government national security processes, including a cancellation of this lease. If security clearances are required to perform work under this Lease Agreement, the Lessee must pay for any/all security clearances.

b. In connection with any transfer of rights under this Lease, Lessee will disclose any proposed transferee or assignee’s status as a foreign owned, controlled or influenced company, organization, or institution. Lessee may not assign to any such foreign owned, controlled or influenced company, organization, or institution without prior DOE’s written consent, which DOE may deny on a written finding of a significant national security interest, as determined by the DOE Office of Counterintelligence. For purposes of this clause, “foreign entities” include: (1) any foreign government or foreign government agency or instrumentality thereof; (2) any international organization; (3) any form of business enterprise or legal entity organized, chartered or incorporated under the laws of any country other than the United States or its territories; (4) any form of business enterprise organized or incorporated under the laws of the United States or a State or other jurisdiction within the United States which is owned, controlled or influenced by a foreign government, agency, firm, corporation, or a person who is not a citizen or national of the United States; and (5) any person who is not a citizen or national of the United States.