Clean energy will be very important to win the artificial intelligence race with China

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The author, the former US Treasury Secretary, heads the Polson Institute

One of the most urgent and low -energy challenges facing the United States is an artificial intelligence race with China. America is at the forefront, but Beijing invests heavily to bridge the gap. Washington’s question is: Can the United States remain forward without a national energy strategy to run it?

The energy scene has changed dramatically in recent years. Russia’s invasion of Ukraine was formed overnight. Prices have risen and governments have risen to reduce dependence on Russian gas. Energy security has become very important. Since Europe and other areas that are not independent of energy seek to address these security gaps, they are increasingly looking to solar energy and wind to reduce the adoption of fossil fuels.

China is progressing, as it links a long -term industrial strategy with huge investments in both artificial intelligence and energy infrastructure to support it. Its data market is expected to grow about $275bn Between 2025 and 2029, it was more invested in renewable energy sources in 2024 from the United States, the European Union and the United Kingdom combined. Beijing’s clear ambition is to control future technologies, and understand that energy policy will be essential.

Meanwhile, in the United States, when artificial intelligence models become more complex and spread on a wider scale and cloud energy increases, the demand for electricity rises faster than facilities can be adopted. Some data centers now consume a lot of energy, such as medium -sized cities. In Virginia, they consumed almost a a fourth Among the burden of power in the state in 2023. This concern about the strains of the higher system and the residential bills has increased, which leads to new and effective regulations Endowment On building data centers in the state.

The United States must develop and publish a clear national strategy that prioritizes speed, flexibility and cost effectiveness. Since the demand for electricity exceeds the supply, it makes sense to think of clean electricity as a “addition” to the current power supply. In fact, almost all additional electricity in the United States last year came from solar energy and wind – traditional energy sources cannot meet the need.

Gas cannot fill the void in the short or medium term due to a lack of turbine. Coal will not solve the problem because the facilities that are turned off quickly cannot be copied enough to meet urgent needs (and air pollution harm health). Nuclear energy expansion is an essential part of the solution, but the United States is behind years, and China is very backward in developing advanced nuclear energy.

Due to America’s abundance of natural gas, many data centers will continue to depend on them but more intelligent and faster models. For example, the hybrid style that uses solar energy, batteries or gas backups at its peak in high demand periods is faster in expansion, due to the arrangement of equipment and assembly times, air and interconnection. This also requires less in advance, and “comprehensive costs” is comparable to Baseload gas.

This model is not without risks. The trauma close to the ecosystems of solar energy or storage will leave a large hole as the needs of artificial intelligence energy increases. Without existing solar incentives, which were somewhat pushed to create a level stadium with China, and with the US administration’s tariff system, the cost of the hybrid model will increase. But sticking to gas will be the sacrifice of the speed in development and betting against the rapid decrease in the costs of storing solar energy and batteries, which decreased about 20 percent last year and more than 80 percent over the past decade.

The correct answer is to choose one power source on the other, but to create, quickly, for the conditions for expanding what is successful. This means that the low -tax regulatory environment that enabled the renewed energy boom in the United States during the first Trump administration. We must also exempt technologies such as long -term batteries from import tariffs, while doubling support for US -based solutions in facilities. As for how the facilities recovery The costs, we must encourage investment in technologies that reduce energy prices for all.

Artificial intelligence is a major motor for electrical order. But it also has the ability to open the great offer gains. We cannot miss this moment. More capacity, reducing costs and the greatest energy security within our understanding.

The United States still built an advantage in energy independence. The test is whether we can meet the energy needs in the next era of innovation. If so, we will be in a stronger position in artificial intelligence than any other nation for decades to come.