Data centers are the factories of AI, turning energy and data into intelligence. Industry leaders estimate that a few major U.S. technology companies alone are expected to invest more than $600 billion in AI infrastructure, particularly in data centers, between 2023 and 2026. The countries that work with companies to host data centers running AI workloads gain economic, political, and technological advantages and leverage. But data centers also present national security sensitivities, given that they often house high-end, export-controlled semiconductors and governments, businesses, and everyday users send some of their most sensitive information through them. And while the United States is ahead of China in many aspects of AI, especially in software and chip design, America faces significant bottlenecks with data centers.<\/p>\n\n\n\n
Data centers are critical for the digital economy and AI. But the data center buildout is hitting a wall. The United States is home to the plurality of the world\u2019s data centers, numbering in the thousands. Yet America\u2019s aging energy grid, which powers those data centers, is under enormous strain from a complex set of factors, including rising electricity demand, delayed infrastructure upgrades, extreme weather events, and the complex transition to renewable energy. Meanwhile, surging data center demands driven by rapidly increasing AI workloads are exacerbating the grid\u2019s vulnerabilities.<\/p>\n\n\n\n
It\u2019s not just a question of how those energy needs can be met, but where. When it comes to data centers, the shortage of powered land in the United States\u2014or more specifically, the shortage of powered land with the connectivity required to support large-scale data centers\u2014combined with supply chain challenges and lengthy permitting timelines for new infrastructure\u2014presents a challenge to realizing both the public and private sectors\u2019 AI ambitions.<\/p>\n\n\n\n
Read it all<\/a>.<\/p> There are a lot of known unknowns about AI, but \u201cThe Next AI Debate Is About Geopolitics.\u201d In my latest @ForeignPolicy<\/a> piece, I argue that data might be the \u201cnew oil,\u201d but nations\u2014not nature\u2014will decide where to build data centers. Source: Foreign Policy https:\/\/t.co\/CHLEzhY9I6<\/a><\/p>— Jared Cohen (@JaredCohen) October 28, 2024<\/a><\/blockquote>