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Home World News

Clean Energy: A Key Factor in Dominating the AI Race with China

by bullnews
April 27, 2025
in World News
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Clean Energy: A Key Factor in Dominating the AI Race with China
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Alright, here we go.

So, you want to keep up with the latest? Easy! Just sign up for the Renewable Energy myFT Digest and boom – straight to your inbox, no hassle.

The guy writing this stuff? Used to be a big shot at the US Treasury, now runs the Paulson Institute. Smart dude, for sure.

Now, here’s the thing. The US is in the middle of this crazy chain reaction about energy and AI, especially with China breathing down its neck. China’s dumping loads of cash into AI, trying to catch up. But the big question for the US is: can we stay ahead without some kind of solid energy strategy? ‘Cause right now, it’s like we’re winging it.

The whole energy scene has been flipped upside down lately. Remember when Russia went into Ukraine? Yeah, that messed things up. Energy prices shooting through the roof, everyone freaking out about Russian gas, scrambling for alternatives. Suddenly, solar and wind are the new hotshots as Europe and others try to ditch fossil fuels.

China’s playing the long game, mixing industrial strategy with massive cash flow into AI and the juice to run it. Their data centre market? It’s gonna blow up by $275bn between 2025 and 2029. And in 2024, they pumped more into renewables than the US, EU, and UK put together. Basically, they’re all in on being tech overlords of the future, and they see energy policy as the secret weapon.

Meanwhile, back in the States? Our AI models are getting super complex, chowing down electricity like it’s free pizza. Some data centers use as much power as whole cities, no joke. In Virginia, around a quarter of the state’s power load went to these centers in 2023. They’re freaking out about energy demands and billing fireworks, so new rules are coming in, slowing data center growth. A bit of a mess, honestly.

So what’s the US gonna do? We need a no-nonsense national energy strategy. Priority on speed, agility, cost – ‘cause demand is off the charts. Clean electricity should add to what we’ve got, right? Almost all new electricity last year was solar and wind – traditional sources can’t keep up.

Gas ain’t gonna cut it short-term; we’ve got turbine shortages. And coal? Forget it, too dirty and too slow. Nuclear power’s crucial, but we are dragging our feet while China’s racing ahead with fancy new nuclear tech.

Even with our natural gas reserves, some savvy hybrid models are emerging: solar, battery storage, quick peaking gas when demand spikes. They’re faster to set up, cheaper, and without massive upfront costs.

But man, it’s risky. If solar or storage takes a hit, we’re in trouble. Without solar incentives balancing out China’s lead, and with tariffs in the mix, it can get pricier. Yet, sticking to just gas is betting against dropping solar and battery costs, which nosedived 20% last year and 80% over a decade.

We don’t need to pick favorites – it’s about scaling up whatever works, ASAP. Think low taxes, chill regulations like the first Trump admin era. Let’s exclude cool tech like long-duration batteries from tariffs and back US solutions in big storage. And as utilities figure out cost recovery, let’s throw support behind tech that lowers energy prices all around.

AI is sucking up power like a giant sponge, but it could also give us more supply when played right. We can’t drop the ball now. More capacity, cheaper costs, better security – it’s all within reach.

The US still stands strong on energy independence. The real test? Powering the next wave of innovation. Nail that, and we’ll rule the AI scene for years.

Tags: ChinaCleanDominatingEnergyFactorKeyrace
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