Empowering America to Lead in AI

America's AI Leadership and the Need for Strategic Investment

The United States currently leads the global artificial intelligence (AI) race, with cutting-edge large language models, hyperscale data centers, and innovative chip designs primarily developed within its borders. However, this leadership is not guaranteed. Without significant investments in energy infrastructure, access to critical minerals, and regulatory reforms, the U.S. could quickly lose its competitive edge to China, which is aggressively pursuing technological dominance.

China’s approach includes substantial state subsidies, intellectual property theft, and rapid construction of facilities—often at the expense of environmental and safety standards. To maintain its position, the U.S. must move beyond good intentions and overly complex regulations. Instead, it needs to build fast, at scale, and with a clear purpose.

State-Level Leadership in the AI Race

Several states are taking proactive steps to support AI development and infrastructure. Virginia, Pennsylvania, Missouri, Idaho, and Texas are leading the charge by expanding energy production, securing access to critical minerals, and building out AI infrastructure. Northern Virginia, for instance, hosts the world’s largest concentration of data centers, reflecting Governor Glenn Youngkin’s efforts to make the state a national AI leader.

In July, Senator David McCormick and former President Donald Trump announced over $90 billion in new energy and data center investments across Pennsylvania. Meanwhile, Missouri, Idaho, and Texas are advancing major AI infrastructure projects and efforts to mine and process critical minerals essential for chip production and national security.

These initiatives highlight the importance of state-level action, but they are only part of the solution. For the U.S. to remain competitive, there must be a broader national push that aligns federal and state policies, removes regulatory barriers, and treats energy infrastructure as a strategic priority.

Federal Actions Underway

President Trump has already taken steps to support AI development through his AI Action Plan, which aims to expedite energy development and reduce regulatory overreach. Federal agencies are working to open federal lands for data center and power plant construction and streamline funding for energy infrastructure and critical mineral projects.

Despite these efforts, more needs to be done. Estimates suggest the U.S. must add at least 50 gigawatts of electric power capacity in the next few years just to sustain AI development. Additionally, urgent investment in power grids and transmission lines is necessary to deliver this energy where it is needed most.

Unfortunately, political opposition remains a significant obstacle. Some lawmakers, including Senator Elizabeth Warren, have consistently blocked critical energy development, even in states that stand to benefit. If the U.S. is serious about competing with China, such politicians must either step aside or be defeated.

Breaking Policy Gridlock

Overcoming policy roadblocks and accelerating technology development will require a coordinated effort. This means moving away from outdated environmental laws and regulations that hinder access to critical minerals and natural gas, nuclear, solar, and hydrothermal resources. These policies undermine U.S. global technology leadership and the economic and national security benefits that come with it.

AI itself can help make energy consumption, mining, and processing of critical minerals cleaner and more efficient, but only if the necessary infrastructure is built now. The notion that domestic energy is not cost-effective or smart is incorrect. The shale oil and gas revolution has already proven this, and the upcoming small modular reactor boom and domestic mining of critical minerals will do so again.

A Five-Point Plan for Progress

To address these challenges, the government can take five key actions:

1. Fast-track permitting and encourage states to do the same.
2. Incentivize private investment in critical projects.
3. Boost the President’s authority to waive outdated legal requirements that hinder critical technology development when it serves economic and national security interests.
4. Preempt conflicting state laws and regulations.
5. Crack down on nuisance litigation by tightening pleading rules or limiting payouts for trial lawyers.

The Stakes for America’s Future

States that seize this opportunity will experience significant economic growth in the coming decade. Those that hesitate, however, risk falling behind. California, under Governor Gavin Newsom, is already showing signs of stagnation, with rolling blackouts and the exodus of tech startups accelerating.

Maintaining technological superiority over China requires bold action, not more bureaucracy. The U.S. has the talent, energy, and determination to lead, but it needs the political courage to make it happen. It’s time to build, and time to choose: lead the future or get left behind.