Artificial intelligence (AI) advancements are rapidly expanding in the United States, but a growing bottleneck is emerging due to inadequate power infrastructure. The situation is starkly different in China, where energy availability is considered a “solved problem.” According to David Fishman, a Chinese electricity expert, China’s deliberate overbuilding and investment in its power sector have resulted in a massive reserve margin of 80-100%, leaving ample room for AI data centers.
In contrast, the US faces a 15% reserve margin, making it challenging to absorb the rapid load increases required by AI infrastructure. The Deloitte industry survey highlights stress on the power grid as the primary limiting factor to data center development in the US. Companies are building their own power plants rather than relying on existing grids due to increasing energy bills.
Goldman Sachs warns that AI’s insatiable power demand is outpacing the grid’s decade-long development cycles, creating a critical bottleneck. The stakes are high, with McKinsey projecting $6.7 trillion investment in new data center capacity between 2025 and 2030 to keep up with AI’s strain.
Fishman notes that China can tap into idle coal plants to bridge the gap if renewable projects cannot keep pace. However, he emphasizes that this is not a preferred solution due to its environmental impact. The US would have to scramble to bring on new generation capacity, facing years-long permitting delays, local opposition, and fragmented market rules.
The difference in governance also plays a significant role. China’s long-term, technocratic policy defines the market’s rules before investments are made, ensuring infrastructure buildout happens in anticipation of demand. In contrast, the US relies heavily on private investment with short-term returns, making it challenging to fund large-scale power projects.
Fishman warns that without a dramatic shift in how the US builds and funds its energy infrastructure, China’s lead will only widen. The gap in capability is expected to continue growing, highlighting the urgent need for reform.
Source: https://fortune.com/2025/08/14/data-centers-china-grid-us-infrastructure