Clean Energy will be critical to win the AI ​​race with China

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The former US Secretary of the United States, chairmanship of the Paulson Institute

One of the most relevant and appreciated energy problems facing the United States is an artificial intelligence race with China. The American is leading, but it invests a lot to close the Pekin gap. Question for Washington: Can it be ahead without a national energy strategy to strengthen the United States?

Energy view has changed sharply in recent years. Russia’s occupation of Ukraine has been revised overnight. Prices increased and governments rushed to reduce the trust of Russian gas. Energy security was key. Like other regions that want to eliminate these vulnerabilities such as non-independent European and other regions, they are looking for sun and wind to reduce fuel dependence.

China pairing a long-term industry strategy with mass investment in both AI infrastructure and energy to support it. Its information-center market expected to grow with about $275 billion Between 2025-2029. This is more recovered energy than the United States, EU and UK in 2024. Beijing’s clear ambition is to judge the technology of the future and understand that energy policy will be key.

Meanwhile, the AI ​​models in the United States are more complicated and are placed in a wider scale and grow up in cloud power, electricity demand can be increased to utilities. Some data centers now consume power up to medium-sized cities. They consumed a nearly one in Virginia block In 2023 of the state’s power burden. This increased concern over strains and higher living documents in the system, new rules and strains moratorium About the establishment of information centers in the state.

The United States must develop and place a clear-eyed national energy strategy that prioritizes the priority of speed, comfort and efficiency. As the supply of electricity exceeds the supply significantly, there is a sense of thinking clean electricity such as “additional” for the existing power supply. In fact, all the extra electricity in the United States last year came from the sun and the wind – traditional energy sources cannot meet the need.

Gas cannot fill in the void or medium period due to a turbine deficiency. Coal will not solve the problem, because the communal services commissioned cannot be reckless enough to meet the urgent needs (and air pollution damages health). The expansion of the nuclear power is an important part of the solution, but it is long ahead of the United States and developing Chinese leading nuclear energy.

Many data centers will still trust in Him, but the easier, faster models are created. For example, in periods of a hybrid model or high demand period using the sun and battery storage or gas backup, equipment has grown in periods of high demand for air permissions and adaptation. These require less pre-investment and are compared to “costs of everything” with Baselolad gas.

This model is not risk-free. A close-term shock for solar or storage ecosystems will leave a large hole in growing AI power needs. It will increase comprehensive costs of a hybrid model, with an important onshoring to create a level playing field with China. However, to sacrifice the development of the development of gas and decreased by about 20 percent over the past year, and over 80 percent of the last decade, the sun and battery storage expenses can be betted against rapid descent.

The correct answer is not to choose a source of energy over another, but do not create conditions to expand what works. This means a low tax, light regulatory environment that provides a renewable energy boom in the first Trump Office. Like long-term battles such as long-term battles, use import tariffs, utility scale storage, while supporting for US based solutions, use import tariffs. As the utilities are get rid of Expenses should encourage investment in technologies that lower energy prices for everyone.

AI is a large driver of electricity demand. However, this is also the potential to unlock the supply benefits. We cannot miss this moment. More potential, less costs and greater energy security.

The United States has still dominated energy independence. The test is that we can meet the energy needs of the next innovation period. If so, we will be a stronger position than any nation that will come for decades.