The Trump administration’s opposition to renewable energy is creating significant challenges for the U.S. data center industry, which is essential for telecommunications, corporate computing, and internet-based services. As AI usage grows, demand for computing power and electricity rises sharply. The International Energy Agency estimates that a single ChatGPT request requires almost 10 times the electricity of a Google search, underscoring the strain that AI places on natural resources.
Despite this, the administration has made clear moves against clean energy. Last fall, Trump emphasized a "drill, baby, drill" approach, targeting renewable projects and reviewing hundreds of clean energy initiatives. In April, U.S. Interior Secretary Doug Burgum called for the cancellation of Equinor's Empire Wind project off New York’s coast. By May, the administration had shuttered major parts of the Environmental Protection Agency, including the Energy Star program, with Paul Gunning of the EPA confirming that climate work outside statutory requirements was being eliminated.
Industry leaders warn that this stance could weaken America’s leadership in AI. Simon Ninan, senior vice president at Hitachi Vantara, told the Financial Times that the U.S. risks “undermining its current pole position in the global AI race,” especially as China takes a proactive approach to grid modernization and efficient power distribution. Interior Secretary Burgum also warned on X that the real existential threat is “losing the AI arms race against China,” while calling for more electricity to meet demand.
The policy shift does not mean that renewable and fossil fuel development are mutually exclusive. Ironically, large-scale gas generation projects promoted by grid operators might come at the expense of renewables, which can be cheaper because there is no fuel to purchase, Kevin Miller of Amazon Web Services told the publication.
If the needed power sources are not available, the construction of new data centers could be hampered, slowing the growth of AI and digital infrastructure in the U.S.
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