The massive electricity demand from AI data centers is creating an urgent need for reliable power. This has caused a surge in demand for natural gas turbines—a market considered dead just years ago—as renewables alone cannot meet the new load.

The capital expenditure for AI infrastructure mirrors massive industrial projects like LNG terminals, not typical tech spending. This involves the same industrial suppliers who benefited from previous government initiatives and were later sold off by investors, creating a fresh opportunity as they are now central to the AI buildout.

To overcome energy bottlenecks, political opposition, and grid reliability issues, AI data center developers are building their own dedicated, 'behind-the-meter' power plants. This strategy, typically using natural gas, ensures a stable power supply for their massive operations without relying on the public grid.

The primary constraint on AI development is shifting from semiconductor availability to energy production. While the US has excelled at building data centers, its energy production growth is just 2.4%, compared to China's 6%. This disparity in energy infrastructure could become the deciding factor in the global AI race.

The insatiable demand for power from new data centers is so great that it's revitalizing America's dormant energy infrastructure. This has led to supply chain booms for turbines, creative solutions like using diesel truck engines for power, and even a doubling of wages for mobile electricians.

For years, the tech industry criticized Bitcoin's energy use. Now, the massive energy needs of AI training have forced Silicon Valley to prioritize energy abundance over purely "green" initiatives. Companies like Meta are building huge natural gas-powered data centers, a major ideological shift.

The public is unlikely to approve government guarantees for private AI data centers amid economic hardship. A more palatable strategy is investing in energy infrastructure. This move benefits all citizens with potentially lower power bills while still providing the necessary resources for the AI industry's growth.

Contrary to the renewables-focused narrative, the massive, stable energy needs of AI data centers are increasing reliance on natural gas. Underinvestment in grid infrastructure makes gas a critical balancing fuel, now expected to meet a fifth of the world's new power demand (excluding China).

While semiconductor access is a critical choke point, the long-term constraint on U.S. AI dominance is energy. Building massive data centers requires vast, stable power, but the U.S. faces supply chain issues for energy hardware and lacks a unified grid. China, in contrast, is strategically building out its energy infrastructure to support its AI ambitions.