Trump's Energy Policies Will Help U.S. Lead in Global AI Race
President Trump’s executive order declaring a national energy emergency signals the fast-track production of more domestic energy. It also promises to generate an equally significant benefit that wasn’t even cited in the EO: Higher energy production will turbocharge our nation’s leadership in artificial intelligence by delivering the huge power supplies AI demands.
Do not underestimate how critically important it is for America to lead the global AI race, especially as China, a potent rival, invests massive resources on AI. The president’s proactive energy strategy can help the U.S. supercharge its AI capabilities and team up with our strategic partners to integrate AI into critical industries and markets. This will prove particularly critical as human-level AI emerges within the next decade.
The Impact of AI on Industries
Already, AI’s rise has triggered breakthroughs in automation, machine learning, and data analytics that are revolutionizing the manufacturing, finance, healthcare, transportation, retail, and other major industries – not to mention the tech industry itself.
The president’s EO recognizes that our AI future rests on a significant increase in reliable, scalable, abundant, affordable, and clean energy, notably natural gas and, soon, nuclear. Open AI’s chatbot, ChatGPT, consumes 3 watt-hours of energy per query – or 10 times more energy than a Google search query. That’s a lot of energy, considering that a common double A battery contains about 3.9 watt-hours.
Energy Needs for AI Development
A new study estimates the power needs from new U.S. data computing center installations alone will balloon by 1,000% from the end of 2024 through 2035. Data centers could account for as much as 12% of the nation’s electricity demand by 2028. The nation will need to work at warp speed to remain competitive in AI and keep the lights on.
Partnerships and Investments
Administration officials expect their pragmatic energy stance to open up American energy options, leading to new natural gas generation and more nuclear power. Companies like Chevron have announced partnerships to build natural-gas powered generators co-located with data centers, setting the foundation to encourage investment leveraging America’s energy abundance for AI leadership.
Real, large investments that create jobs and economic development are being made, with states competing to attract these opportunities. For example, Meta announced a $10 billion investment to build its largest data center, requiring new power generation to be added to the state’s grid.
States like Louisiana are facilitating private sector investments by streamlining permitting and facilitating smart energy policy, contributing to economic development and energy security.
Energy Policy and AI Development
The Trump Administration's energy policies aim to bolster AI capabilities by providing the necessary electricity while preventing power outages. By improving the reliability of the electric grid and increasing power production, the U.S. can generate reliable power and meet economic needs.
Turning away from bleak energy futures towards common sense and practical policies is crucial for affordability, environmental responsibility, reliability, and prosperity.
