Shark Tank star and investor Kevin O'Leary said that blocking data center projects across the U.S. risks the country's competition with China in the field of artificial intelligence.
China's Energy Infrastructure Advantage
O'Leary stated that China is focused on improving the power grid needed to support the massive electricity demands of data centers. He noted that China is obtaining energy faster and building these data centers to train its own AI.
O'Leary said, "The country with the best artificial intelligence will have the best economy and the best defense, the best military, and will win all wars robotically."
Technological Progress and Objections
Data centers are at the forefront of AI's continuous development, forming the hardware for the vast amounts of electricity and infrastructure required for improved response times and data storage. However, opponents cite the cost-benefit to local residents and environmental concerns in their efforts to block the development of new centers.
Kevin O'Leary said that today's technology is completely different in terms of heat profile, water profile, and how large these buildings need to be, as they have air-cooled technology and advanced chip technology.
Political Reactions and Legislative Initiatives
President Donald Trump signed an executive order titled "Accelerating Federal Permitting Processes for Data Center Infrastructure" aimed at reducing regulatory burdens that slow data center development.
In response, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced the AI Data Center Moratorium Act. Ocasio-Cortez stated, "We must choose humanity over profit."
Economic Benefits and China's Construction Capacity
Judge Glock, Research Director at the Manhattan Institute, said data centers bring significant gains to local communities and that the jobs created from these facilities benefit communities and local economies.
Nvidia CEO Jensen Huang noted that China's construction capacities far exceed those of the U.S., saying, "If you want to build a data center in the U.S., it probably takes about three years from groundbreaking to having an AI supercomputer installed... They can build a hospital over a weekend."
Current Status and Long-Term Warning
Widespread data shows that the U.S. currently has a significantly higher number of operational data centers than reported in China. According to Statista, as of April, the U.S. has over 4,000 facilities, while China has just over 300.
However, O'Leary warned that if U.S. development slows, China could overtake the U.S. in the long term.
