 "The idea behind Trump’s plan is to set up new power plants right next to data centres, creating self-sufficient facilities rather than relying on the national grid. Representative Image. Credit: Reuters")
In a virtual speech at the World Economic Forum on Thursday, President Donald Trump revealed that his administration is looking to speed up the approval process for AI companies seeking to build power plants for their data centres. This move aims to address the increasing energy needs of AI systems and ensure the US stays competitive with China in the tech race.
Trump’s plan involves using a national energy emergency declaration to push through the construction of fossil-fuel-powered plants directly serving AI data centres. This would cut down on the long wait times typically associated with building new power plants, allowing AI companies to quickly ramp up their operations. He pointed out that the US would need to double its current energy capacity to fully realise AI’s potential, making it a vital part of staying ahead in the global tech competition.
A new way of powering data centres
The idea behind Trump’s plan is to set up new power plants right next to data centres, creating self-sufficient facilities rather than relying on the national grid. This model is already being explored by energy giants like Chevron and Exxon, who are looking at ways to support the growing demand for power in the tech industry.
With data centres already consuming as much energy as small cities, the rise of AI is only going to increase this demand. Trump’s announcement highlights the urgency of securing enough power to fuel the AI boom, especially as competition with China intensifies.
The rising energy demands of AI
AI is having a massive impact across various sectors, not just in tech but also in energy, real estate, and construction. The need for more computing power and infrastructure is driving up demand for energy, with AI’s rapid growth requiring huge amounts of electricity to operate.
Trump’s proposal to fast-track power plant construction is an attempt to ensure that AI companies have the resources they need to scale up quickly. As AI becomes an even bigger part of the economy, having a reliable energy supply will be crucial for the US to maintain its position as a leader in the global AI race.