Industry experts and financial analysts warn that the slow expansion of the U.S. power grid threatens the country’s leadership in artificial intelligence. Rapid growth in energy-intensive AI data centers is driving electricity demand faster than new power infrastructure is being built.
U.S. electricity demand from data centers is projected to surge, but the country is building high-voltage transmission lines at a fraction of the pace it did a decade ago. Permitting delays and fragmented governance are slowing construction.
China is expanding its power infrastructure much faster. That could give it an advantage in meeting the vast energy needs of AI development and potentially strengthen its position in the global AI race.