A New Technological Revolution
We are on the verge of a technological revolution unlike anything we’ve seen before. Artificial intelligence is not just a buzzword; it’s a central player in shaping global dynamics, affecting military power, economic advancement, health innovations, surveillance practices, and personal freedoms. In this new landscape, those who control AI will effectively set the rules for the 21st century.
The stakes might not appear high at first glance. Yet, as the United States grapples with discussions around regulations and climate policies, China is moving forward, fueled by its energy resources.
It’s essential to recognize that energy availability is not just a secondary concern in environmental discussions; it should be viewed as a crucial national policy priority.
When discussing China’s AI strategy, attention often turns to its state subsidies and investments. China’s command economy enables the Communist Party to guide the nation’s production efforts. For instance, the CCP has invested billions in various sectors, including quantum computing.
China’s Energy Advantage
However, there’s a significant story unfolding: China is dramatically enhancing its AI capabilities through a historic increase in energy production.
The country is rapidly constructing new coal plants, accounting for 95% of global coal plant construction in 2023, along with ambitious projects like the largest hydroelectric dam. Together, these ventures have significantly boosted China’s energy capacity, reaching 10,073 terawatt hours in 2024.
Beijing recognizes what American policymakers often overlook: a modern economy and advanced AI systems are, quite literally, energy-hungry. Training these sophisticated models requires immense amounts of power, and efficiently running AI at scale hinges on having a dependable electricity grid.
China has not limited itself by adhering to carbon targets or ESG guidelines. In fact, they pursue the course that many powerful nations do when seeking dominance: they assert their interests, especially in regard to securing energy resources.
Challenges in America
In contrast, many American leaders seem to accept climate warnings with a sense of helplessness. The US has effectively shuttered coal plants and stalled nuclear projects, making it increasingly difficult to establish new energy infrastructure. The touted green initiatives might garner applause at forums like Davos but don’t light up homes—or power the data centers that AI relies on.
The demand for energy from the AI sector is still growing. Developers are circumventing traditional utility providers and opting to build their own power plants, indicating an overwhelming strain on the current grid. This demand is also affecting citizens’ energy costs, as they now compete with data centers for limited electricity.
OpenAI’s CEO, Sam Altman, even mentioned plans to invest in a new data center that could cost around “the trill”. According to Morgan Stanley, projected global investment in AI infrastructure could reach $3 trillion by 2028.
Currently, grid instability is becoming more pronounced. Frequent power outages, brownouts, and increasing electricity costs have become part of daily life in America. Now imagine overlaying the considerable energy needs of AI onto a system already dealing with vulnerabilities. It’s not a pretty picture.
As we enter the AI era, a weak electricity grid signals a weak nation—and that’s precisely what authoritarian regimes like Beijing are hoping for.
A Call to Action
Donald Trump has already taken significant steps to pivot America toward energy independence. On his first day, he released a comprehensive plan to focus on “unleashing American energy.” This underscores that energy policy is taken seriously at the highest levels of government.
In recent months, Trump has signed numerous executive orders aimed at bolstering domestic energy production and reducing reliance on inconsistent energy sources. Recently, the EPA re-examined danger levels, which could undermine climate initiatives that have hindered energy production since the Obama era.
These actions warrant significant trust and support. To ensure that the US remains a contender in the AI space, it must not just maintain this momentum but amplify it. Energy availability shouldn’t be treated as a peripheral issue in environmental discussions; it must be viewed as a central national policy priority.
Global Implications
This situation transcends technology; it significantly influences the kind of world we aspire to inhabit. Equipped with both AI supremacy and energy resources, an authoritarian China could reshape global order around censorship, surveillance, and control.
If we want America to spearhead the future of artificial intelligence, decisive action is needed now. Winning the AI race requires more than just the innovative efforts of Silicon Valley; it necessitates a combined push for robust domestic energy production, a realistic approach to climate issues, and equitable access to reliable, affordable energy for all.
