A key determinant of becoming a global leader in AI is the ability to build an efficient, sustainable and resilient infrastructure that ensures energy is available, reliable and constant. The state of national power grids in China, the EU, and the US remains a significant barrier. China’s creaking grid represents a major constraint to progress and the government is planning to invest more than US$800bn over the next six years. The investment will support Beijing’s Eastern Data, Western Computing initiative, which aims to tap into China’s energy resources in the west and transfer computing power to economic hubs along the coast.
The European power grid is one of the oldest in the world. Moreover, around 40% of the grid is around ten years off its expected lifespan, while over half of the physical grid needs to be repaired or replaced. It remains uncertain whether the estimated US$584bn in European grid investments needed this decade will materialise. In 2024, the EU’s Modernisation Fund handed out almost US$3bn to modernise member states’ energy systems, amongst other activities.
The ageing and fragmented US grid comprises three main regions (Western, Eastern and Texas), which remain inefficient, especially for interconnections between regions. The US Department of Energy (DoE) estimates that power outages cost the US economy US$150bn annually. Modernising the US grid will cost trillions over the coming decades.
Building AI infrastructure is only one part of the story, as sovereign AI capabilities may prove more decisive.
— IISS News (@IISS_org) January 31, 2025
Read the latest analysis by Charlie Edwards: https://t.co/5y4Hb1bd1o pic.twitter.com/HWb7vskEoL
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