Another day, another warning from Nvidia’s (NVDA) chief Jensen Huang. At a Center for Strategic and International Studies event, he claimed that the United States may fall behind China in the race to build large-scale AI sites. He said a new American data site can take close to three years to go from an empty plot to a live system. He then said China can put up large sites at a far faster pace. He used the old line about a new hospital in a short span to note the pace.
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Meanwhile, the gap in energy supply adds more weight to the point. China added about 400 gigawatts of power in 2024. The U.S. added about one-tenth of that sum. China now has more than 3,300 gigawatts of total power supply. More than half comes from sites that run with no smoke. The U.S. has stayed at the same level for a long time. As a result, the cost to run the next wave of AI sites may rise in the U.S.
Policy Strain Slows New Sites
Kevin O Leary, best known from Shark Tank, spoke about the same trend in press interviews. He said U.S. firms lose time since the permit process can take 6 to 18 months. He then said the build phase can take 18 to 36 months. He said China puts up a new data site each month.
Soon after, the White House set new orders to speed the path. President Donald Trump signed rules that mark data sites as key work sites. The rules require state groups to move faster on checks for any plan above $500 million. The plan also aims to open parts of federal land for new sites by late 2025.
Alphabet (GOOGL) chief Sundar Pichai made a related point. He said more than 1,000 state bills related to AI may form a set of rules that is hard for firms to plan around. He said the lack of one clear path can hurt growth.
Chip Lead Still Helps Nvidia
Even with these hurdles, Huang said Nvidia stays far ahead of China in chip craft. He said the firm is still many steps ahead in design. Yet he also warned that China can build on a large scale if it sees a clear path.
At the same time, American firms plan to spend more than $100 billion on new sites in 2025. This helps push more supply for the next wave of AI tools. The pace of that spending may depend on how fast new land, new power, and new rules come through.
We used TipRanks’ Comparison Tool to align the major U.S. companies that operate data centers. It’s a great tool to gain a broader perspective on each stock and the AI industry as a whole.
