Energy secretary indicates Trump is undoing electricity policies from the Biden administration.

Concerns Over U.S. Energy Policies and AI Competition with China

Mike Gallagher, head of defense at Palantir Technologies, recently spoke with Barney & Company, highlighting a significant concern: the U.S. might lose the AI Cold War to communist China. He emphasized the need for a vigorous approach to energy, defense, and innovation to protect America’s leadership position.

Energy Secretary Chris Wright also shared some insights during a segment on “Fox News Sunday.” He mentioned that the current administration’s energy policies will lead to lower electricity rates throughout Trump’s presidency. Wright indicated that these measures are a stark contrast to the previous approach under Joe Biden, which he claimed negatively influenced energy costs.

“While we’re doing everything in our power to halt the rising electricity prices linked to Biden’s policies, there’s definitely some inertia,” Wright admitted. However, he expressed optimism that electricity prices would stabilize soon. “In fact, we expect a drop in prices during the latter half of this quarter,” he noted.

A federal judge recently struck down a Trump executive order that restricted wind energy projects, which was a considerable move in the ongoing energy discourse.

The latest Consumer Price Index report from the Bureau of Labor Statistics showed a minor decrease of 0.5% in electricity bills compared to last month. However, compared to the previous year, there’s been a rise of 5.1%, a fact that reflects the growing demand for power, especially from data centers driven by AI technologies.

“I believe President Trump’s energy policies, alongside the energy limitations enforced by Biden, have had an immediate affect on gasoline and diesel prices,” Wright stated. He pointed out that the power sector is complex, warning that coal-fired and natural gas plants will phase out over the next few years. “I was just out in Washington state, and they’re looking to demolish four hydroelectric dams. But we’ve halted the closure of coal-fired plants for now. More on that to follow,” he added.

There’s a broader context here—America’s dominance in AI is apparently tied to winning what some are calling a “power competition” with China, according to energy experts.

This summer, the Energy Department reversed a Biden-era memo that raised the possibility of breaching the four hydroelectric dams on the Snake River in Washington. These dams generate over 3,000 megawatts of power—enough to supply electricity to about 2.5 million homes. Concerns were voiced about the potential negative repercussions of removing these structures, which could lead to significant regional power shortages and increased wholesale rates.