Data center expansion is driving massive investments and could be a big economic opportunity for Tribes.
Office of Indian Energy Policy and Programs
January 20, 2026
minute read time
Hearing the buzz about data centers? Data center expansion is driving massive investments and could be a big economic opportunity for Tribes. Aside from land leases, Tribes can pursue partnerships with data center developers through energy generation sales, long-term operations, and ownership stakes in infrastructure. Tribes bring unique advantages to potential developers and could benefit throughout the value chain.
Data centers are getting a lot of attention right now. Fundamentally, they’re just big buildings that house computer systems, which have been around for a long time. What’s new is how quickly a huge number of hyperscale data centers are standing up to support the growth in the use of artificial intelligence (AI).
Data centers vary greatly in size, use case, and how much energy they use. Some are small units, requiring less than a megawatt (MW) of power, whereas others are very large and require gigawatts of power—such as those used for massive-scale operations and high efficiency, like AI data centers.
Opportunities and Considerations for Tribes
Partnering with a data center developer holds tremendous opportunity right now—from land leases to selling power to the data center through a power purchase agreement to infrastructure developments and job expansion. And although there are several benefits, factors such as water use; local and community impacts; and transmission infrastructure, interconnection, and fiber access requirements should be considered.
Developers are looking to build data centers fast, so being able to move quickly is a strong selling point for potential partners. You can decide if that makes sense for you. The Office of Indian Energy is here to support Tribes in this decision process.
Join our Feb. 12, 2026, webinar, Beyond Land Leases: Harnessing Data Centers for Tribal Economic Development. This webinar will discuss the unique advantages Tribes bring to developers; key components required for successful data center development; the role of the right partners to deliver maximum value to the community; and sources of support for Tribes seeking to evaluate whether a data center may be a good fit. Register here!
Let’s Work Together
We at the Office of Indian Energy recognize many Tribes know how to design, permit, construct, and operate large infrastructure, often requiring reliable 24/7 power with robust cybersecurity controls. Those same skills are relevant, for example, to developing megawatt- or even gigawatt-scale data centers. We’ve worked with many of you before, and we are available to work with you again.
The Office of Indian Energy supports Tribes in several ways:
- Our financial assistance can help enable energy projects to power a data center. To date, our competitive awards have included funds for project planning and for generation and distribution buildouts, all of which might be helpful in bringing a data center to your area.
- Our technical assistance is free of charge for Tribes and covers a broad range of options, including support for evaluating generation, site requirements, or other considerations for your area. We also offer legal assistance to help evaluate deals and structure the regulatory or utility environment.
- Our resources available to Tribes include a template that can help you pitch your site to data center developers, connections with potential partners, and workforce development support—all of which can help you evaluate and frame the opportunity of a data center.
Reach out to the Office of Indian Energy to discuss these resources and more! Contact our office staff directly at 240-562-1352 or indianenergy@hq.doe.gov.