President Donald Trump on Wednesday declared a national emergency over the "unusual and extraordinary threat" to the U.S. bulk-power system, signing an executive order that restricts the purchase and installation of certain foreign-made equipment used in the nation’s electricity grid.
The executive order notes that the rise of artificial intelligence, data centers, and advanced manufacturing has led to more demand for reliable electricity.
According to the White House, foreign-produced equipment and associated digital technologies could create opportunities for sabotage, unauthorized access, cyberattacks, or disruptions to the electric grid.
The equipment includes major pieces of grid infrastructure such as transformers and generators.
Under Trump’s directive, the energy secretary can require utilities and other infrastructure operators to make certain changes to existing systems.
Trump's action on Wednesday does not mean an entire ban on all foreign energy equipment but rather establishes a framework under which certain equipment can be prohibited when it's considered an operational risk or threat to national security.
The restrictions cover certain electrical equipment, including critical software, according to the directive, with the Trump administration particularly concerned about equipment that could provide foreign actors with remote access to critical grid infrastructure.
"Since my first term, the threat to the United States regarding foreign supply of bulk-power system electric equipment has become even more acute: The rapid growth of advanced manufacturing, data centers, artificial intelligence, and defense production has increased the Nation’s dependence on abundant, reliable electricity and magnified the consequences of a successful attack or supply disruption on the bulk-power system," Trump wrote in the order.
Trump’s directive also requires the Secretary of Homeland Security, the Director of National Intelligence, and other agency heads to publish rules or regulations within 120 days to provide clarity on which suppliers and equipment are affected by his executive order.