America leads the AI race, but without bold energy investments, infrastructure, and regulatory reform, that edge could vanish—leaving China to seize the future of technology.
Today, America dominates the artificial intelligence (AI) race. Nearly every cutting-edge large language model, hyperscale data center, and innovative chip design was built on American soil. But our lead is fragile, and without the infrastructure to sustain it—particularly access to electric power, critical minerals, and compute capacity—America’s advantage could vanish almost overnight.
Even as America dominates, China is hot on our heels, backed by billions in state subsidies, stolen intellectual property, and a willingness to build dirty, dangerous facilities at breakneck speed. But we won’t beat China with good intentions or all-too clever regulation. To the contrary, if we want to stay ahead, we must build fast, at scale, and with purpose.
State Level Leadership
That’s why efforts in states like Virginia, Pennsylvania, Missouri, Idaho, and Texas to expand energy production, access to critical minerals, and build out AI infrastructure are essential. Northern Virginia houses the world’s largest concentration of data centers—reflecting Governor Glenn Youngkin’s push to make the Commonwealth a national AI leader. At an event in July, Senator David McCormick and President Donald Trump jointly announced over $90 billion in new energy and data center investments across Pennsylvania. And in Missouri, Idaho, and Texas, major AI infrastructure projects and efforts to mine and process the critical minerals that power chip production and other key national security needs are also underway.
The question now is whether the rest of the country will follow or fall behind. While a few states are leading, America’s long-term success in winning the AI fight against China and other adversaries depends on a broader national push—one that aligns federal and state policy, clears regulatory roadblocks, and treats energy infrastructure as a strategic imperative.
Federal Actions Underway
To that end, President Trump has already taken meaningful steps. His administration’s AI Action Plan aims to expedite energy development, while federal agencies are working to curb regulatory overreach, open federal lands for data centerand power plant construction, and simplify and expedite the funding of energy infrastructure and critical mineral projects.
Still, more needs to be done. Some estimates suggest the United States needs to add at least 50 gigawatts of electric power capacity in the next few years—if not more—just to sustain AI development. And we need urgent investment in our power grids and transmission lines to get that power to where it is needed.
Unfortunately, many politicians still prefer roadblocks to results. And it’s not just the usual suspects from elite coastal enclaves—some of the loudest opposition comes from lawmakers in the very states that stand to benefit the most. If we are serious about beating China, politicians like Senator Elizabeth Warren, who have spent years obstructing critical energy development, must either step aside or be defeated.
Breaking Policy Gridlock
Overcoming bad policy and accelerating technology development will require an all-hands-on-deck approach. That means shedding our overreliance on outdated environmental laws and regulations that make it nearly impossible to expand our access to critical minerals and natural gas, nuclear, solar, and hydrothermal capabilities. Clinging to such policies undermines our global technology leadership—and the economic and national security benefits that come with it. AI itself could make our energy consumption, mining, and processing of critical minerals cleaner and more efficient, but only if we have the backbone to build now.
It is time to reject the notion that domestic energy isn’t cost-effective or smart. The shale oil and gas revolution has already proven that wrong, and the coming small modular reactor boom and domestic mining and processing of critical minerals will prove it again. Now that we have a crucial need to put this newfound access to American domestic energy resources to work, we cannot delay these efforts.
No doubt, this infrastructure will require major capital investments. But the notion that taxpayers need to foot the bill is simply incorrect. Private sector investors and innovators already see the opportunity. The real obstacles are layers of federal, state, and local red tape—and the endless stream of nuisance litigation by dozens of trial-lawyer-backed activist groups.
A Five-Point Plan
The government can address these roadblocks in five key ways: First, the administration can fast-track permitting and press states to do the same. Second, Congress can incentivize private investment in critical projects. Third, lawmakers can bolster the President’s authority to waive outdated legal requirements that hinder critical technology development if it is in our economic and national security interests. Fourth, Congress can preempt conflicting state laws and regulations. And fifth, the government can crack down on nuisance litigation by tightening pleading rules or limiting payouts for trial lawyers.
The Stakes For America’s Future
States that take advantage of this once-in-a-generation opportunity will be poised for massive, exponential economic growth in the next decade. Those who hesitate, on the other hand, will inevitably fall behind. We already see the growing malaise in California, where, under Governor Gavin Newsom, rolling blackouts and the exodus of leading technology startups continue to accelerate.
Maintaining our technological edge over China’s massive state-directed efforts won’t take more bureaucracy—it will take backbone. America has the talent, energy, and grit to lead. Now we need the political courage and will to make it happen. It’s time to build, and time to choose: lead the future or get left behind.
About the Author: Jamil N. Jaffer
Jamil N. Jaffer is the founder and executive director of the National Security Institute and the NSI Cyber & Tech Center at George Mason University’s Antonin Scalia Law School and, among other things, serves as a member of the Virginia Governor’s AI Task Force. He previously served in senior national security roles in the Bush Administration, including as Associate Counsel to the President in the White House, and on Capitol Hill at the House Intelligence Committee and at the Senate Foreign Relations Committee, where he served as Chief Counsel and Senior Advisor. Mr. Jaffer is writing in his personal capacity.
Image: Nan_Got/Shutterstock
