China lags behind the U.S. in the AI arms race, but it’s taking aggressive measures to change that.
A recent report highlights that over $20 billion in investments crucial for the AI data boom might be jeopardized due to support from individuals aligned with the Chinese Communist Party who are fostering anti-AI sentiments.
What’s somewhat surprising is that a significant number of Americans seem to back this opposition.
In Silicon Valley, while the focus is heavily on attracting top engineers, there are critical battles unfolding in local zoning meetings and city protests against new data centers.
“Many people think this debate is simply between AI and no AI, but it’s really about whether American AI or Chinese AI will take the lead,” stated Sam Lyman, who contributed to the study for the Bitcoin Policy Institute. “Whoever controls AI will have a significant impact on the global economy’s information landscape.”
The situation has become serious enough that members of the House Energy and Commerce Committee have urged the White House and FBI to look into whether foreign threats are influencing anti-data center efforts.
Americans appear to be quite opposed to data centers—71% don’t want one in their neighborhood, which is a higher rate of opposition than that against nuclear power plants.
A report from the Bitcoin Policy Institute warns that adversaries are actively working to hinder American advances in this area.
It claims that Marxist activist Neville Singham and affiliates of the Party for Socialism and Liberation (PSL) have exploited local issues in 14 states to impede over $23.6 billion in proposed data center projects through fundraising, petitions, and public hearings.
Their actions have led to various local suspensions, and even a permanent ban in California, along with cancellations of several major projects, including significant investments from Google and Blackstone.
Organizing efforts continue in cities like Cleveland, New Orleans, and Milwaukee.
Admittedly, there are valid concerns regarding data centers. They can be, well, quite unattractive, and it’s perfectly reasonable for residents to voice their concerns over local developments.
However, the backlash seems a bit overblown, as Lyman notes. The frustrations are often fueled by misinformation.
“Many claims that upset people are simply untrue, especially regarding water use,” he explained, adding that some figures have been exaggerated by a large margin.
He also mentioned that Singham, originally from Connecticut, and the PSL leverage a consistent tactic of playing on public fears and grievances.
“He utilizes the same divisive strategies across multiple issues,” Lyman shared, bringing up various topics that can create societal divides.
In recent years, groups affiliated with Singham have actively worked to fuel disdain towards American technology, celebrating China’s ability to navigate U.S. export controls and labeling AI data centers as threats to American corporate power.
PSL publications link data centers to rising utility costs and environmental harm, framing the national debate on AI data centers as pivotal for future control.
Singham has invested around $300 million in socialist initiatives in the U.S., but tracing the funding source for PSL remains complicated.
“The most troubling aspect for me is the opaque funding behind PSL,” Lyman remarked. If inquiries arise about foreign adversaries potentially financing PSL, “the available records don’t provide clear answers.”
Ultimately, how much innovation can happen if the necessary energy and data infrastructures are blocked?
This situation reminds us not to be overly naive. Foreign threats will do everything in their power to impede America’s success. We must continue to push forward, nonetheless.
