The global competition for dominance in artificial intelligence (AI) is rapidly taking shape, with the outcome poised to determine economic leadership in the 21st century. What is often overlooked in this race is that AI’s immense power demands offer a unique opportunity to accelerate the development of next-generation clean energy technologies.
If the United States fails to address both the needs of AI and the expansion of clean energy, it risks falling behind China in these critical areas, jeopardizing its position as a global economic leader.
AI’s rapid expansion is placing an unprecedented burden on the electrical grid. AI data centers, which are essential for processing the massive amounts of data required by AI, are projected to add the equivalent of three New York Cities to the grid by 2026.
By the end of the decade, AI could account for up to 9% of the country’s total electricity consumption. The energy demands of AI are driven by the computational intensity of advanced AI chips, which require significantly more power than traditional data centers. This creates a pressing need for a steady and reliable power supply to support AI operations 24/7.
At the same time, the US faces a major challenge in expanding its energy infrastructure quickly enough to meet this growing demand. The country already has thousands of gigawatts of clean energy capacity waiting to connect to the grid, but the infrastructure required to deliver this power is progressing at a slow pace.
Grid upgrades and the construction of transmission lines are taking longer than anticipated, causing significant delays. The example of the Three Mile Island nuclear plant, where the delay in restarting the facility is largely due to challenges in connecting it to the grid, underscores the difficulties of scaling clean energy at the necessary speed.
AI and Clean Energy Create a Dual Opportunity for the United States to Secure Economic Leadership
The debate around scaling clean energy often presents a false choice between AI development and environmental concerns. Some argue that the only solution to meeting AI’s energy demands is to rely on traditional fossil fuels, like natural gas and coal, which would undermine the US’s commitment to clean energy.
However, this approach not only exacerbates ecological issues but also threatens to erode the country’s economic and competitive edge. As other nations, particularly China, make aggressive investments in clean energy technologies, the US risks falling behind in the transition to the next generation of energy solutions that will drive future economic growth.
To address AI’s power needs, the US must invest in novel clean energy technologies that can provide reliable, concentrated power at scale. Solutions like advanced nuclear fission, next-generation geothermal energy, and potentially nuclear fusion are well-suited to meet these demands.
These technologies are capable of producing large amounts of energy in relatively small spaces, making them ideal for powering energy-intensive AI data centers. Furthermore, new infrastructure, such as advanced transmission lines and cooling systems, will be necessary to support the increasing energy density required for AI operations.
The intersection of AI and clean energy technologies also presents a unique opportunity to accelerate progress in both fields. AI can play a crucial role in advancing energy technologies, from improving the efficiency of renewable energy sources to optimizing power plant operations. Additionally, AI-driven innovations in materials science and resource discovery are helping to lower the cost and speed up the development of next-generation energy solutions.
Large tech companies, eager to secure reliable, clean power for their AI infrastructure, are already investing in these technologies, which could rapidly accelerate the deployment of clean energy and create new market structures. By capturing this convergence of AI and energy, the US can secure its future leadership in both fields, outpacing global competitors like China.
