Input Stories

As the U.S. works to hold its edge in AI development, China is counting on a big advantage to help it catch up: its massive buildout of power production (The Wall Street Journal, subscription).

The big buildup: “Between 2010 and 2024, its power production increased by more than the rest of the world combined. Last year, China generated more than twice as much electricity as the U.S.”

• That capacity is benefitting Chinese data centers, some of which pay half the rates that American centers do.

Taking up space: Inner Mongolia, with its wide-open landscape, is now festooned with thousands of wind turbines and transmission lines.

• “They provide electricity for what officials describe as a new ‘cloud valley of the grasslands,’ with more than 100 data centers in operation or on the way.”

Looking ahead: “Morgan Stanley forecasts that China will spend some $560 billion on grid projects in the five years through 2030, up 45% from the previous five years. Goldman Sachs predicts that by 2030, China will have about 400 gigawatts of spare capacity, about three times the world’s expected data-center power demand at that time.”

Meanwhile… “In the next three years, U.S. data centers could face an electricity shortfall of 44 gigawatts, the equivalent of New York state’s summertime capacity, Morgan Stanley has forecast.”

Spurred to action: “America’s energy and AI leadership depends on permitting reform that allows us to build,” said NAM Vice President of Domestic Policy Chris Phalen. “The global race is on, and the time to act is now.”